How to make your property purchase offer more appealing
When it comes to buying a property, people tend to think it’s all about offering the right price to the property seller.
In most cases that’s true, but buyers can also make an offer more appealing with the conditions they include in the contract of sale.
Conditions and the contract of sale
The contract of sale is a legal document that sets out the specifics of the sale process and what’s included in the purchase.
It has clauses that relate to when the buyer will have finance approval, when settlement will occur, and conditions which need to be met prior to the contract moving forward.
It also includes any property features which are to be included in the sale, such as a specific item or piece of furniture.
In addition to standard terms and conditions, there can also be more specific clauses added. And in some cases, these can help get a buyer offer across the line.
Consider the seller’s circumstances
If you’re looking to put forward an appealing offer, it pays to consider the seller’s circumstances and this is where you should talk to the selling agent to determine the reason for the sale, and any terms or conditions which might make your offer more enticing.
In some instances, this might involve removing roadblocks to ensure the sale is swift and effortless.
In others, it might include offering terms and conditions which help meet their needs, such as a longer settlement period or the ability to rent the property back for a period.
Three conditions that tend to appeal to sellers
As Domain explains, there tend to be three key conditions in the contract of sale that often appeal to a seller.
These are:
- Price
- An unconditional contract, and
- Settlement timing
For example, a seller might have already made an offer on another property, so is looking for a swift settlement on the one they are selling. In this instance an offer with a short settlement period might be more appealing.
Or perhaps they are yet to find their next property and are hoping for a longer settlement to give them time to locate one.
Maybe, they are keen to sell, but not to move, so would appreciate the option of renting the property back for a period time.
Each of these terms takes the seller’s circumstances into account, and if two buyers are offering similar prices but different conditions, the seller will likely take the offer with conditions that best meet their needs.
Other conditions you might consider
While there is a standard contract of sale, the reality is this is a legal document that can be altered in some parts to reflect the needs and desires of both the buyer and seller.
It might include things like the early release of the deposit, which gives the seller early access to deposit funds.
Or perhaps the buyer wants to include something specific at the home as part of purchase, like furniture or a piece of equipment. These can be factored into the property’s inclusions and exclusions.
The final takeaway
If you’re considering making an offer on a property, talk to the agent about conditions in the contract of sale which might make your offer more appealing.
As part of this process, also ensure you speak with your legal advisor about what conditions are feasible and how any contract alterations impact you.
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