Tamworth real estate purchases just got easier

Tamworth real estate agents have adopted a new system that sees contracts exchanged immediately.

Once a price has been settled on, buyers can go to the agent's office, pay a 0.25 per cent deposit and exchange the contract – which is subject to a five day cooling off period.

Tamworth Association of Real Estate Agents president Richie Thornton said under the traditionally system, it can take two to six weeks to exchange contracts.

“Many things can happen in that time, a buyer can change their mind and the same thing can happen from the vendor's side,” Mr Thornton said

“Both parties could be four or five weeks down the track, only to have deal fall through.

“The advantage [of the new system] for the purchaser is they’re protected if the vendor gets a better offer, because they’ve already exchanged, while the vendor gets more security.”

Mr Thornton said the immediate exchange would save emotional stress, an “often overlooked” part of buying or selling a house.

“Emotions go through the roof when a vendor sells and a purchaser buys, they do not relax until get that notice the contract has exchanged,” Mr Thornton said.

“Every vendor who has ever sold a property knows exactly what I'm saying.

“The emotion trauma that people go through is hard to put a value on it, but I can assure you, the value is high.”

Once the contract has been looked over, and everything is in order, the balance of the 10 per cent deposit can be paid before the cooling off period, then both parties can move on to the settlement.

“If in that five days the buyer decides not to go ahead, they lose the 0.25 per cent deposit,” Mr Thornton said.

“It’s not a huge amount of money, but it binds both parties.”

Mr Thornton said buyers and vendors didn’t have to go through the new process, but expected it to be the preferred method.

“It will be a bit of a mind shift and transition for buyers, but in six to 18 months I think it will be the norm,” he said.

“It might be a new system for Tamworth, but in other places like Sydney, Central Coast and other regional areas our size, it’s been the norm for some time.” The immediate exchange is available for all properties in Tamworth Regional Council.