What does it mean to make an offer?
A formal offer on a home must be made in writing and submitted to the selling agent, who will notify the vendor. A verbal offer can be made in person or by phone, but it is not as serious as a written offer.
Depending on the vendor and agent’s preferences, the written offer can take the form of an email, a signed form, or the signing of a contract.
How to Make a Property Offer in Australia
If you’re serious about buying a house, it can be intimidating to have to jump through all the hoops to make it your own. Here’s what you should do to increase your chances of receiving the keys at the end of the process.
Obtain financing approval
Pre-approval is an excellent means of judging whether not a bank is going to provide you with a loan to cover what you need to acquire the home.
If you’ve employed the services of a mortgage broker then they will be the go-between between yourself and the financial institution of your preference. Contrary to what you may believe, though, pre-approval is not a binding agreement and it only becomes such after you’ve met all the bank’s conditions.
Request that a solicitor or conveyancer review the deal.
It is essential to have a conveyancer or solicitor on standby to review contracts. When your pre-approval is authorized, it’s time to find a legal specialist that can swiftly and effectively review a contract.
You may locate someone in your region by doing a fast online search. You’ll need to discover an expert who has dealt with similar sorts of property transactions since they’ll be able to tell you right away if anything in the contract is out of the norm.
Often, you’ll be able to discover a law company that will examine a few contracts and only charges you if your offer is approved; however, many purchasers make failed bids before having one accepted. If you’re going to make many offers, you don’t want to be charged every time you need a contract read.
Attend the first open for inspection.
According to Jellis Craig Doncaster director Andrew Keleher, if you’re thinking about putting an offer on a house, turn up to the first open for inspection to evaluate the degree of interest.
If the open for inspection is underutilized and the property is scheduled for auction, a seller may be more willing to accept an early bid.
If you are unable to attend the first open for inspection, always inquire with the agent as to how many parties have been through and what the level of interest has been. Having a decent conversation with the agent is a great approach to show them you’re serious, which may have unexpected clout with the vendor.
Request a response from the seller.
Once you’ve placed a deposit you may ask for a speedy response to your offer by talking with the agent. If the seller accepts the offer then you’ll have a certain period of time, generally about a week, to have any conditions you’ve attached satisfied.
Bank approval will normally take a few days and a building and pest inspection will also generally take a few days to schedule and execute.
Pay the deposit
To make your offer official, you’ll usually have to pay a holding deposit or an expression of interest deposit, which is stored in the real estate agent’s trust account, depending on where you live. A typical deposit is 10% of the buying price, however, this might vary based on your circumstances.
If the offer is not accepted, the deposit will be refunded to you, and the agent is required to notify you if another offer is made on the same property.
Give your best pricing.
Most purchasers who make a bid on a house prior to the auction do so either to snuff out the competition or in the hope of finding a good deal.
If you want to purchase a house, don’t think you have to buy it for the lowest feasible price. Take the mindset that if it’s a house you want and you have to go above and above, do it since it may take you six months to locate the same property again.