Five tips for making an offer on a property
Whether a property is going to auction or is for sale by private treaty, making an offer can be an important part of the purchasing process that helps you secure your dream home or investment property.
But how exactly does the offer process work and what do you need to know?
Making an offer
Any offer you make on a property should be made in writing, and should include the price you are willing to pay along with any conditions attached to that sale.
That formal offer is then put to the property seller who can opt to accept or reject it.
If they accept, a contract of sale is drawn up which both parties sign. The property is then considered under contract, with both parties working through the relevant conditions before the property officially changes hands.
Offers can be made on a property in any type of property sale. That means you can make a formal offer on a property before an auction, as part of a tender process, or in the instance of a private sale.
But what should you know in advance? Here are five tips for making an offer on a property.
Indicate your interest to the agent
When a property piques their interest, many people make the mistake of playing their cards so close to their chest that before they know it that home is under contract with someone else.
If you have an interest in the property, let the sales agent know.
You can also ask that they notify you if any other formal offers are made, so you can make an offer of your own.
Indicating your interest could also allow you to gain an understanding of how much the seller might accept and their motivations.
Conduct any required inspections
Before you purchase any property, you should conduct the necessary inspections, such as pest and building.
These help assure you the property is in the condition you expect it to be in and also allow you to alter your intended offer if there is a potential problem.
Line up your finance
If a seller accepts your offer, there is a chance you will need to move quickly. That means you should have your finance lined up well in advance with your lender.
A rule of thumb is to gain conditional approval from your lender before you make any formal offer.
Consider the seller’s motivations
Every vendor has a reason for selling their property, and this can impact the conditions they attach to a sale, along with the price they will accept.
In some instances, the seller may not be motivated by the highest price but might find a longer settlement period appealing.
Talk with the agent to try and determine the seller’s motivation and how you can cater to them to make your offer more appealing.
Decide on a price
The price you decide to offer will be determined by a range of factors, including research of the price that similar properties in the suburb command, the seller’s motivation, your budget, your desire to have the property, and more.
But once you have decided on the price you are prepared to pay along with the conditions attached to the sale, put it in writing and present it to the agent.
Looking to buy or sell?
If you’re considering buying or selling a property, why not chat with one of our friendly Eview agents on 1300 438 439?
You can also view our list of currently available properties here.