MAKING AN OFFER ON A PROPERTY
Please find following an outline of the processes and important factors involved in the purchase of a property in Queensland.
Please read through and consider the information below when considering your next property purchase;
Having a thorough understanding of your current financial situation and what you can afford, before you being to view properties, will save you both time and effort. Pre-approved Finance will give you a guide to finding a property within your budget and also act in your favour when competing offers may arise.
Know your options when it comes to Mortgage Terms whether it be through a bank or mortgage broker; time spent in seeking comparative quotes and asking detailed questions on rates, fee’s penalties and payment options could save you thousands of dollars over the life of your future mortgage.
Research your entitlements as they may increase your budget; government grants and schemes may be limited to your first home purchase. Your RE/MAX Agent will be able to assist and guide you in the right direction if required.
Know the potential costs of buying; associated costs to purchasing a property will vary in each case but may include legal fees, transfers tax, property taxes, new home landscaping etc., your RE/MAX Agent will be able to offer you advice on these matters if requires.
CONTRACT OF SALE
THE PROCESS OF MAKING THE OFFER
The process of making an offer on a property can vary from state to state. For some areas, the first offer can be verbal, for others it is written.
Before entering the ‘game’, understand the rules and preferably make the offer in writing – this eliminates any confusion concerning what the offer and conditions were.
Before getting to the offer, your relationship with the agent might consist of a number of phone calls, second and third visits to the property and possibly some inspections.
During this process and before you make an offer make sure that you:
QUESTIONS TO ASK BEFORE MAKING AN OFFER
Have there been any offers made to date? If so, what were these and why were they rejected?
Sometimes it is not the price offered which has seen an offer rejected. It might have been due to settlement dates, conditions, etc. you don’t necessarily have to up the ‘price’, it may be just changing (adding or deleting) another condition.
Did you set the asking price or did the vendor?
This question will give you an understanding of whether the vendor has an asking price they are looking to achieve. It may be that they are being unrealistic or need a certain amount for a particular reason, for example, buying another property.
When did the property come onto the market? Are you the first agent to offer the property for sale? Has the asking price been reduced at all?
This question will give you a handle on whether the vendor might be ready to negotiate.
HOW TO OFFER AT AUCTION
Making an offer on a private treaty can be done in your own time, but an auction is different. Auctions are emotional and you have to keep cool under pressure. To get an idea of how these play out, attend numerous auctions before ‘the big one’. This way you can check out strategies used.
Before the day, have all your inspections, terms and conditions etc., completed and checked out by your solicitor.
On the day, know what you want to pay for the property and don’t deviate. Remember, deposits are 10% of the purchase price so have that available. Make sure you have the support. If you are not comfortable bidding at an auction use someone that is – a friend, relative or buyer’s agent.
SHOULD I GET A VALUATION?
It is definitely worth getting a registered valuation on the property. Although this is generally done as part of the loan process. Although this is generally done as part of the loan process, your negotiations would have already taken place.
If you want to get your offer on the table, you can always add a condition that is subject to a valuation. However, the vendor might not accept this condition and you might miss out on the property.
There are some common mistakes people make when making an offer…Don’t fall into this trap;