The art of making an offer
We often hear stories from buyers who feel they simply do not understand how to go about making an offer. If you are looking to purchase a property, it is important that you feel confident in your negotiating techniques when discussing an offer and the terms and conditions associated with it. A good understanding of the offer process can give you confidence and create a positive experience, regardless of if your offer is accepted or not. Points to consider when submitting an offer include:
Have you organised pre-approval? After the Royal Commission final report was released in February, buyers continue to find the process for loan approval is longer and banks want to know more about your circumstances. Having your pre-approval sorted is our number 1 tip when presenting an offer at the moment. The good news is that this is starting to get easier again, with assessment rates being cut and additional purchasing incentives like waiving stamp duty. If you are still working through this process we highly recommend you speak with a broker who can assist – we recommend Nitish Kumar from Clarity Home Loans.
Are you able to make an unconditional offer? Understanding the difference in these offers are important, sellers will always be attracted to an unconditional offer (which is legally binding once the contract is signed). In fact, in the past 2 weeks we have sold 2 properties to buyers unconditionally, exchanging just a day after their offer was presented to the sellers.
Are you aware of your current equity base? Do you need to sell to buy and what are the associated timeframes and costs of each scenario? This is where we can come out to see you and provide personalised advice.
Have you reviewed the marketing contract? We can refer you to a solicitor to assist with this process for free, so if your offer is not accepted you will not be charged, we bet you have not heard of any other agents offering this service?
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