First Home Buyers Club Blog

Schnauer & Co deal with many first home buyer enquiries. Often first home buyers don’t know where to start or when they are ready to make their first offer. As a first home buyer, there is often so much information to process, that it can feel overwhelming. Whether it’s in relation to the steps that need to be taken, legal terminology or understanding the different types of properties out there. Because first home buyers can incur substantial costs during this process, we often suggest that clients make an offer on a property only once they are truly ready and with a condition that allows them to undertake their due diligence (including legal advice) after any offer is accepted to avoid unnecessary costs.

Here's a step-by-step guide of how to approach making an offer on your first home:

Every so often, Schnauer & Co will have enquiries from clients about an encroachment that they have become aware of, many years after purchasing their property.  For example, you have your land surveyed and find out that your neighbour has built a fence, not on the boundary, but actually on your land.  Or there is a structural addition that extends beyond the legal property boundaries. Usually this is picked up when owners are selling (during the purchaser’s due diligence) or if they are considering subdivision/construction of any extensions or additions.  

Schnauer & Co have previously addressed this in article “Breaking down the sale and purchase agreement” back in 2018. However, there have been many changes to the agreement since then.  We are currently up to the eleventh edition 2022 (3) of the ADLS/REINZ Agreement for Sale and Purchase. It is best for you to use this form when making an offer by negotiation or, if the sale is by way of an auction, ADLS/REINZ have produced a separate agreement for auctions (the Sixth Edition 2022 (2)). If you are attending an auction then we recommend that you refer to our article “Purchasing A Property At Auction”.  

Making an offer on a house is both an exciting and nerve-racking time! What's the right amount to offer? Is it too much or too little? What conditions should you include? Finding the right balance between a competitive offer and one that fits your budget is crucial, and should be carefully considered. After all, buying your first home will likely be the biggest, and most expensive, purchase you’ll ever make.

Here’s 6 steps to help guide you through the process:

We have previously addressed this topic in our article “5 Creative Ways to Get into Your First Home” which was published on our blog last year.  Since then, we have noticed that this topic has been in the media and it appears that first home buyers (“FHBs”) raise concerns about this option being too restrictive or complicated. It also appears from social media posts that there is a major lack of understanding when it comes to the current Bright-line rules.  Generally, there is also a lack of knowledge in relation to how a property sharing agreement (“PSA”) can make a group purchase less complicated.  

Schnauer & Co Lawyers covered the various changes to the current ADLS Agreement of Sale and Purchase of Real Estate (Eleventh Edition) 2022, in our article “Legal Toolkit: Expert Tips for First Home Buyers – Part 2”.