wee_me 10 Report post Posted April 11, 2015 (edited) Hi when you submit a written offer for a (prebuilt/old) house do you always have to provide a deposit to the real estate agent? If so how much? Thanks Edited April 11, 2015 by wee_me Share this post Link to post Share on other sites
annjean 10 Report post Posted April 11, 2015 10% I think it is. Share this post Link to post Share on other sites
Druid 20 Report post Posted April 12, 2015 You negotiate the deposit, most banks want at least 5%, but any less than 20% attracts Lenders Mortgage Insurance, which is a one off payment based on the purchase price which could be added to the mortgage using an equation to make sure you dont over capitalise, its complicated, you really neeed to talk to a broker, here is a link to Commerce WA http://www.commerce.wa.gov.au/consumer-protection/real-estate-purchase-price-deposit-and-finance-term Share this post Link to post Share on other sites
wee_me 10 Report post Posted April 12, 2015 Thanks for the replies- yes I understand the whole mortgage situation Im asking about when you submit a formal written offer to an estate agent. To clarify- do you give the estate agent a deposit along with your offer to show you're 'serious' or not? If so how much is 'normal' Share this post Link to post Share on other sites
SJT 10 Report post Posted April 12, 2015 Hello Wee-Me When we submitted our formal offer I think we had a few days to pay $5,000 into the real estate agents bank account, this was once our formal offer was accepted, that was obviously then calculated into our final payments of stamp duty, 20% deposit, rates, water rates, settlement agents fees two days before final settlement. Share this post Link to post Share on other sites
Druid 20 Report post Posted April 12, 2015 I would only like to put $1000-$2000 on the table, at least this way if things dont go as planned you can move on to the next house without waiting to get your money back on the first Share this post Link to post Share on other sites
elfie 11 Report post Posted April 12, 2015 I would only like to put $1000-$2000 on the table, at least this way if things dont go as planned you can move on to the next house without waiting to get your money back on the first I dont think you would be able to do that. Just remember to get written into sale contract subject to surveyor report or basically you will be buggered. Share this post Link to post Share on other sites
Druid 20 Report post Posted April 12, 2015 Thats what I mean, if theres something seriously wrong on the surveyor report or even if you dont get finance for the balance, you can pull out and eventually get your money back, remember, your money goes into trust, it cant be instantly refunded, so If you tie all your money up on one property and it goes pear shaped, you cant move on until your cash is refunded, one thing I like about Aus, no gazumping, once you have both signed the OTP you are locked in, subject to.............of course Share this post Link to post Share on other sites
Deb 10 Report post Posted April 12, 2015 We put 10,000 others spoke to put 5,,000.Up to you,we where told if we did not get house then money goes straight back to you. Share this post Link to post Share on other sites
abc 10 Report post Posted April 12, 2015 We only put $1000 deposit when we had our offer accepted to buy our house, it's a good will gesture, and what you can afford to pay at the time! Share this post Link to post Share on other sites
Druid 20 Report post Posted April 12, 2015 We put 10,000 others spoke to put 5,,000.Up to you,we where told if we did not get house then money goes straight back to you. Yea, the estate agents tell you that about the rental bond too Share this post Link to post Share on other sites
newjez 13 Report post Posted May 15, 2015 Just a warning, Perth house buying is not like the UK. You can't just walk away from a written offer, (does depend on what is written). I have known people to sue for damages when people have changed their mind. Be sure before you put an offer down, and read the small print. Share this post Link to post Share on other sites
Jueglittergirl 10 Report post Posted August 7, 2015 How long does the process take, offer accepted.......... to moving in, roughly, is it 3-4 months similar to uk? Share this post Link to post Share on other sites
abc 10 Report post Posted August 7, 2015 How long does the process take, offer accepted.......... to moving in, roughly, is it 3-4 months similar to uk? NO! Nothing like the UK, 6-8 weeks, subject to finances & you're in!!! Share this post Link to post Share on other sites
Jueglittergirl 10 Report post Posted August 7, 2015 NO! Nothing like the UK, 6-8 weeks, subject to finances & you're in!!! Great at news, we're considering buying rather than renting as we know the area that will fit with work and schools as well as offering us good access to the beach and traveling farther afield. Share this post Link to post Share on other sites
abc 10 Report post Posted August 7, 2015 Great at news, we're considering buying rather than renting as we know the area that will fit with work and schools as well as offering us good access to the beach and traveling farther afield. If you need a mortgage broker, I can give you details of a awesome guy! Been using him for years, nicest bloke, over the top helpful, honest! Share this post Link to post Share on other sites
Rossmoyne 98 Report post Posted August 7, 2015 How long does the process take, offer accepted.......... to moving in, roughly, is it 3-4 months similar to uk? Ours was 2 weeks as the owners had already bought and were living elsewhere and were servicing two mortgages. We were happy with that as our stuff was in storage and we were living with rellies and needed to move into our own place asap. But it something that you negotiate when you make the written offer. Share this post Link to post Share on other sites
Jueglittergirl 10 Report post Posted August 7, 2015 @Rossmoyne Thanks for the info, sure it's going to be a bit of a minefield but we will take it one step at a time, we fly next week and I'm hoping we can have something sorted by the end of Sept once our container arrives. Share this post Link to post Share on other sites
verystormy 85 Report post Posted August 7, 2015 Be aware the banks won't consider you for a mortgage until you have three months of pay slips. Share this post Link to post Share on other sites
Lou8670 12 Report post Posted August 7, 2015 (edited) Oops just realised the start of this thread is old...so I've changed my answer!.... I wouldn't buy something straight away unless you know the area really well already...and I mean street by street... Edited August 7, 2015 by Lou8670 Share this post Link to post Share on other sites
Druid 20 Report post Posted August 8, 2015 Not sure if its mentioned above, but if you dont have at least 20% deposit you get nailed for Mortgage Lenders Insurance, which could be up to about $30k lumped on your mortgage, and if you keep the mortgage for the full 30 years, thats one hell of an expensive insurance policy $30k over 30 years...................ouch. Share this post Link to post Share on other sites
newjez 13 Report post Posted August 8, 2015 Not sure if its mentioned above, but if you dont have at least 20% deposit you get nailed for Mortgage Lenders Insurance, which could be up to about $30k lumped on your mortgage, and if you keep the mortgage for the full 30 years, thats one hell of an expensive insurance policy $30k over 30 years...................ouch. It's also not insuring you, it's insuring the bank against you. Share this post Link to post Share on other sites
newjez 13 Report post Posted August 8, 2015 Oops just realised the start of this thread is old...so I've changed my answer!.... I wouldn't buy something straight away unless you know the area really well already...and I mean street by street... Can you elaborate please? Share this post Link to post Share on other sites
Druid 20 Report post Posted August 9, 2015 Can you elaborate please? Some suburbs, streets look wonderfull to start with, a week in you realise its actually rough as old boots......................................or Share this post Link to post Share on other sites
AbbyDonaldson 10 Report post Posted August 10, 2015 Hello When you place an offer you can negotiate the deposit to the Real Estate agent but based on experience this is around $2000 - $5000. Ensure when you are signing the offer that it is subject to finance, pest and building inspection which will ensure if any of these fall through you will be able to get your deposit back. If you have any further questions please don't hesitate to PM me. Thanks Abby Share this post Link to post Share on other sites
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