It's amazing how often people forget the basics when they're involved in buying a property. They fall in love with a rundown cottage when what they're really looking for is a low-maintenance unit or townhouse. They get a rush of blood and forget their limits when bidding at auction.

It's easy to get carried away. Even though buying a property is one of the largest investments most people will ever make, emotions often get in the way (and so they should, to a point).

At Raine & Horne Palm Beach we believe the secret to good buying is as simple as doing your research thoroughly and planning the process well in advance. Just as you should never go to the supermarket on an empty stomach, you should never approach the task of buying a property without being armed in advance.

Firstly, consider what you want and need in your new home. Ask yourself whether you want a unit, house or town house? Will you buy an established home, a new home and land package or will you buy the land and have a home built on it? How many bedrooms will you need, how much living space, will you have a pool? How much money are you willing to spend? And where do you want to live?

There are many avenues that can be used here to gain information. You can consult real estate publications, newspapers, builders exhibitions or building advisory centres. You can also talk to your local Raine & Horne Palm Beach agent or an agent in the area you want to live.

Obtaining Finance

It is usually wise at this step to talk to a number of lenders to determine the types of finance available and how much you can borrow. Obviously the amount of money you can borrow will have a direct relationship to how much you can afford to spend.

It is important that these issues are clarified so that you don't waste your time looking at properties that you cannot afford.

There's any number of lenders out there these days. Finance can be obtained through building societies, banks, credit unions and a plethora of other lending institutions. In short, shop around.

Obtaining Legal Advice

You should also select a solicitor to act on your behalf before commencing to search for your property. That way you can be assured of obtaining immediate legal advice as necessary and they will advise of actions you need to take during the purchase cycle.

Finding A Property

After having decided these issues you then need to start the task of finding what you want and need. You can search newspapers, real estate property guides, watch "for sale" signs in the area or call on agents in the area in which you want to live.

Be prepared for compromise, though, as it is very difficult to find exactly the property you are looking for.

If one of the properties which takes your fancy is to be auctioned, get some practice in beforehand. Attend an auction or two to get the feeling for how it is conducted, and the procedures you will need to follow as a purchaser at auction.

Once you have located the property you wish to purchase, you will need to begin negotiating the final price and any conditions of sale. The agent for the seller will act as negotiator between yourself and the seller.

Once a price has been agreed upon, you should contact your solicitor to commence actions to arrange for the exchange of the contract.

The procedures for exchange are the same as those mentioned earlier for selling a property. Again, your solicitor can help.

Exchanging The Contract & Completing The Sale

Once an offer has been accepted the agent will follow up with your solicitor and the purchaser and their solicitor to arrange for an exchange of contract. At this point the prospective purchaser will be asked to pay a deposit, normally 10% of the purchasing price. Please note in NSW a cooling off period of 5 - 7 business days is allowed to purchasers to rescind the purchase. They are currently required to pay to the seller a fee of .25% of the purchase price (this does not apply to auction sales) if they rescind the contract.

To avoid the cooling off period and to have a contract which is binding from exchange, some solicitors require the purchaser to furnish a certificate from a Clerk of the Local Court or another solicitor. The vendors solicitor may enclose notices and a blank form of certificate under the act and require on exchange of contracts a completed certificate to the fact that the purchasers solicitor has witnessed the purchasers signature on the contract and explained the meaning of the contract. No cooling off period applies if the purchaser has had independent advice of this nature.

The deposit can be invested on behalf of the seller and buyer and an arrangement reached regarding interest earned.

After exchange the agent will continue to liaise with all parties to ensure that completion of the purchase is streamlined.