Quite often, finding a property you fall in love with is easy; securing it is the difficult part. Making an offer may seem daunting, but using these three points you will hopefully be positioned to secure the property of your dreams.
- Get your finances in order
Knowing how much you can spend, and working out how much you should spend are two very different things. Once you have consulted with your bank or finance institution to determine your borrowing power, it is important that you consider how much the property you want is really worth. Researching the property’s area, as well as median prices for similar property compositions, will enable you to make an informed choice of what you should offer.
Determining the limit you are willing to spend on the property is not necessarily the first offer you should submit. Senior buyers advocate Mark Ribarsky suggests, “A bargain is ideal, but make sure that your offer is respectful”. Finding a fair and reasonable first offer is essential and is more likely to be received well by the real estate agent and vendors. An unrealistically low offer can be seen as insulting, antagonising the vendors and making them less likely to offer a reasonable counter. Use your upper limit to work up towards without creating a steep uphill battle for yourself.
- Consult your property solicitor
A property sale contract is legally binding and has the potential to be detrimental to your position if not composed properly. Consulting with a solicitor or property conveyancer is a valuable step to ensure that the contract terms mimic your intentions and settlement needs. Your legal representative will also ensure that you are aware of the inclusions within the property so there are no nasty surprises on moving day.
- Determine the type of offer
When purchasing a property there are two types of offers you can submit: conditional or unconditional.
Unconditional offers are final. You are stating that everything in the contract is valid and there are no grounds to withdraw it.
Conditional offers however leave room for the unexpected. Within a conditional offer you can create specific clauses that your offer is dependant on pest or building inspections, or even on finance approval from your lender.
Conditional offers are often preferred by buyers, however vendors may accept a lower financial sum in the form of an unconditional offer as it provides a greater guarantee that the sale will go through. Make sure you strongly consider what is best for your individual position before making either type of offer.
Making an offer on a property is an exciting time and a buyer’s advocate may be just the right person to help clarify your options. For an obligation-free conversation contact Wist Realestate Advice on 1300 009 473 to find out how their services can assist your property needs.