Preparing to make an offer on a property? Here’s what you need to do.
In searching for a property, you spend countless weeks or even months searching for the right house, in the right suburb, for the right price. When you’ve finally found it, you want to make sure you’re ready so you don’t miss out.
Before you make any offer or bid at an auction, it’s important that you select a conveyancer or solicitor to assist you with the property purchase. Ask them to review the Section 32 for you as well as the contract of sale, which you can request from the agent.
Also, when you are ready to make an offer, consider the following:
· Ask the agent if the vendor would prefer the settlement period to be long or short. Their answer may give you an indication of the vendor’s eagerness to sell.
· If the vendor only wants 30 days for settlement, it may mean that they are very keen to sell. If you can agree to this timing, the vendor may accept a lower price to secure a faster sale. After the contract is signed, the settlement date can be brought forward by agreement. It’s worth noting that if you request an extension at this stage, there is a risk of financial penalties to you.
· Think about whether there are any conditions you would like to include, and how likely the vendor will be to accept these. Adding extra conditions may reduce your risk, but the vendor might see a greater risk of the sale falling through. If you are making an offer prior to an auction, vendors may not accept conditions at all.
Preparing the offer
Making an offer can be nerve-wracking. It can help to have some wording prepared.
For example:
· I would like to make an offer of $X for the property.
· My preference for settlement is X days.
· I will need a finance approval clause. Although I’ve already seen my mortgage broker, I need to secure formal approval for finance of $Y from my lender, which may take up to 10 business days.
· My offer is subject to a satisfactory building report – to be arranged by me and completed within 48 hours of my offer.
· I don’t have 10% cash available for a deposit, I can offer 5%.
· My offer is also subject to removal of the rubbish currently stored behind the shed in the back yard before settlement. (Or add any clauses depending what is applicable.)
Purchasing a property can be a stressful process but arming yourself with knowledge and teaming up with professionals that can walk alongside you on this journey can make the world of difference both to your stress levels and your outcomes.
Before you are ready to make an offer, it is best to get pre-approval. Complete our 5 minute form here: https://bit.ly/43VqyrH
Call on: 0418 552 938
Email at: peter.jefferson@mortgagechoice.com.au, or
Book a time to chat: https://bit.ly/43WsXma
If you’re a first home buyer, I’ve also created a useful guide to help you understand other key aspects of buying your first home.