There is a lot to think about when you purchase property and negotiating on the settlement period is one factor that some people take for granted. Ensuring you have enough time to get all your paperwork and finances in order, as well as move home, is essential to a low stress move. Here are some key factors to keep in mind.

Give yourself enough time

You may be busting to get into your property as fast as possible but it is hard to settle on property in a week. It usually takes the conveyancers 14 days to conduct the required searches, rate and building records – essential documents that need to be reviewed before settling on your property.

Getting your finance in order

It takes time for your banks to go through the various processes, if you require a bank loan to purchase your property. You will need to advise your bank when the contract of sale has been signed as it can take up to 14-21 days for all your finances to be approved and unconditional for settlement. From this date, you can expect to wait another 14 days to receive all the relevant loan documents and where you will need to sign and supply to the bank’s solicitor has to review.

What if I have a guarantor?

If you have a guarantor or are purchasing through a family trust for example, keep in mind that the process will take even longer. The more complicated the structure, we recommend the more time you give to get all the paperwork in order.

Ensure you can settle on the day you negotiate

This seems like a no brainer but it is something you should keep in mind when negotiating settlement. You want to be present and available to do your final inspection in the week prior to settlement as well as being available on the settlement date. This is important if you have bought the property with furniture or special conditions, which may be stipulated in the contract of sale.

The opportunity is there for you to do a final inspection to ensure that everything is as it should be so make sure you take up this offer!

Have a plan in place when you negotiate your settlement

Are you set on moving in on a particular date or are you more flexible? Depending on your situation, having a plan in place will give you freedom to negotiate on the day of purchase. Keep in mind that purchasing at auction or by private sale are different. At Auction when you are the winning bid, you are agreeing to the settlement date indicated on the contract. If you are not happy with this date you will need to advise the selling agent before you bid. For a private sale, you may like to use the settlement date as additional ammo to get the price you want. If you understand the motivation of the vendor to sell, this negotiation tactic could really work in your favour if you are flexible with your settlement dates.

Read more about buying real estate:

How to invest in property, a time-line of the steps involved

Should your first property be an investment property?

Seven global hotspots for real estate investment