Making an offer on a property means expressing your willingness to purchase the property at a certain price and under specific conditions. Here’s a breakdown of the process and key steps involved:
- Get Finance Pre-approved:
- Ensure you have pre-approval for a loan to cover the purchase.
- If sold via private treaty, the bank may send a valuer to assess the property’s value.
- Legal Advice:
- Engage a solicitor or conveyancer to review the contract.
- Look for someone experienced with similar property transactions.
- Research Similar Properties:
- Check recently sold properties in the area to gauge a reasonable offer.
- Attend the First Open Inspection:
- Gauge interest and inquire about the number of parties attending.
- Form a good relationship with the agent to show seriousness.
- Decide on Offer and Conditions:
- Consider both price and conditions attached to the offer.
- Conditions may include finance approval, building and pest inspections, settlement terms, etc.
- Put Offer in Early:
- Consider making an offer early if there is low interest, putting you in a better negotiation position.
- Offer Your Best Price:
- The highest offer may not always win; conditions also matter.
- Pay the Deposit:
- Pay a holding deposit or expression of interest deposit to formalize the offer.
- Deposit amount is often around 10% of the purchase price.
- Get a Response from the Vendor:
- Liaise with the agent for a timely response.
- If accepted, there’s a predetermined time to meet any conditions attached.
- The Vendor Signs the Contract:
- Once conditions are met and the cooling-off period (if applicable) has elapsed, the offer becomes unconditional.
- Completion of paperwork finalizes the purchase.
Offering Less than Asking Price:
- If offering less, provide reasons and evidence, considering the market trends.
- Discuss with the agent and consider sweetening the deal by waiving certain conditions.
When to Make an Offer:
- Make a formal offer as quickly as possible.
- Closer to an auction, vendors may be less likely to accept early offers.
Withdrawing an Offer:
- Once a contract is signed, a deposit is paid, and the cooling-off period has passed, withdrawing an offer may incur penalties.
- Changing your mind before signing the contract usually does not incur penalties.
Important Considerations:
- Maintain open communication with your legal expert and the agent.
- Understand the market conditions and justify any variations from the asking price.
- Each step in the process has specific timelines and conditions, so careful attention is crucial.