How to make an offer
So you’ve found a property that ticks all your boxes, and it’s price is close to what you had in mind. But what next?
Well, now is the opportunity to make an offer, and here’s how that’s done…
What is an offer?
An offer is the price you’re willing to pay for the property, and it can be lower than the asking price, the actual asking price, or even above it.
The offer you decide on will depend on the condition of the property, what needs to be done, your available budget and how much demand there is for that property.
Regardless of how the property is being sold, a buyer has an opportunity to make an offer at any time during the sales campaign.
This even applies to auction campaigns, where a potential buyer can make an offer prior to auction day.
Talk to the agent
If you’re considering making an offer on a property, speak with the selling agent to indicate what you have in mind.
The agent is obliged to take all offers to the property seller, but can also advise you as to whether they believe it’s an offer the vendor would consider.
They can also offer their insight into whether the terms and conditions you propose might suit, including settlement periods or any other contract clauses which you propose including.
Put it in writing
An offer is not official until it is put in writing, and this can be in the form of an email, a signed form or a signed contract.
The agent will then submit this offer to the vendor for their consideration.
Offer accepted or rejected?
Once the seller has received the offer, they can choose to accept it, reject it, or make a counter-offer.
They will instruct the selling agent whether your offer is acceptable and the agent will then let you know the outcome.
Negotiation
After you’ve made an offer, there might also be a period of negotiation where the agent and seller liaise with you to achieve the price they feel happy to accept for the property.
There might also be conditions of sale that need to be negotiated, including finance clauses, the settlement period, pest and building inspections or other terms and conditions that apply to the sale and the sales contract.
Under contract
Once your offer has been accepted, you will be asked to sign a contract of sale for the property. This will outline all the conditions stipulated, including the property price that has been agreed upon.
When both parties have signed this document, the property is officially under contract.
Before you make an offer
Before you consider making an offer on any property it is advisable you:
Speak to your lender about how much you are eligible to borrow
Gain pre-approval
Conduct thorough research on the area where you are considering buying
Personally inspect the property
Have the property inspected by a building and pest inspector
Seek legal advice
Looking to buy or sell?
If you’re considering buying or selling a property, why not chat with one of our friendly agents on 1300 438 439 to understand the state of play in your local market?
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
