After months of searching online, driving to every open house on a Saturday, Sunday and rushing to that mid-week open after work, you finally come across a property that ticks all the boxes, you want to make an offer, but you don’t want to overpay, so where do you start?
Having dealt with hundreds of buyers looking to get into the property market or add to their property portfolio, I’ve seen the plethora of emotions that come with buying a property.
So, what is the process?
As a mentor of mine once said, trust the process and you will put yourself in the best position possible to achieve your desired result.
1) Sort your finance
Start by getting your finances in order, speak to a mortgage broker and get pre-approved, sometimes the offer accepted by the seller isn’t the highest price, it’s the offer that comes with the best conditions attached to it e.g. 30-day settlement, cash unconditional, etc. Speak to the Agent understand the sellers motivation to sell, and their preferred settlement date, and any additional information they can provide you to make your offer stronger.
By having your finances in check you know exactly how much you can afford and you are in a stronger position to negotiate.
2) Do your research
Research the property, check out the local area, schools, parks, cafes and speak to agents to assist you with getting an idea of the sellers asking price (don’t be afraid to use them, they’re a free resource). Study comparable properties that have sold in the area recently, this will help you determine how much you think the property is worth.
Once you are locked and loaded with your information on the property and area, and you have your finances in check, you are ready to negotiate.
3) Make the offer
Ask the Agent for an offer form, an offer in writing is much more powerful than a verbal offer, it shows the sellers that you are serious. For most buyers they play a game of chess, they make a low offer, the seller rejects it, the agent asks you for your best and final, in what seems to be a never ending game of phone tag, emails, private viewings, building inspections and stress.
Do yourself a favour, put forward an offer in writing which you can wholeheartedly say was your absolute best, and put you in the best position to buy the property, given your personal circumstances. Even if you aren’t the successful buyer, you are able to walk away and say we gave it our best and that’s alright, on to the next one.
But it’s going to auction…
Auctions can be a daunting prospect, much like preparing for an exam, a game, or a performance you should get some practice under your belt, attend a few auctions before you bid on the property you want. Get comfortable with the process and observe other buyers strategies.
Auctions have no cooling off period, and require a 10% deposit payable immediately after auction (on the day) and a 30-day settlement. Speak with the Agent prior to the auction day if you need to make alterations to those terms e.g. 5% deposit, 45-day settlement.
If you’re not comfortable with bidding at auction, have a relative or friend bid on your behalf as a proxy bidder.
Lastly, ask the Agent whether they are accepting offers prior to auction, a word of advice, if you are going to make an offer prior to auction, it has to be an offer that will stop an auction from going ahead.
Helping People Buy & Sell!
Yianni Garbas CA