I met a valuer on a property the other day and started discussing some of the intricacies of property (buying, selling and financing).If you've heard of Lenders' Mortgage Insurance before, this can add a completely different dimension to negotiating the outcome for a sale.
I once had an exceptional offer on a property which was accepted and went to contract. When the valuer came out to the property, he found that it was 48 metres from power lines. As the buyer was financing 100% of the purchase price and despite the fact that he had the capacity to service the loan, the finance was declined as the buyer could not obtain mortgage insurance and the sale could not proceed.
To avoid paying mortgage insurance, a buyer needs to have at least 20% of the purchase price in cash to put towards the purchase of the property.
The valuer told me that a property needs to be over 150 metres away from power lines for a lender's mortgage insurer to insure the property.
There are many schools of thought out there as to the health risks of living near power lines. But the big issue, if you believe they're not a health risk, is to consider the impact of a buyer's finance when it comes to resale. It is crucially important for your real estate agent to have the right knowledge and the skills to ensure that any buyer they obtain an offer from to purchase the property has the capacity to pay for it.
This, then, highlights the importance of choosing the right agent and not just someone who says we can do it cheaper!
Marilyn is a Licensed Real Estate selling residential property in the Northern Suburbs of Brisbane.
You can contact Marilyn about this or any other real estate matter on 0407 149 309 or
email marilyn.davies@harcourts.com.au
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