Congratulations! You've found a property that you love. It has all the features you've been searching for and now you are ready to make an offer to purchase.
Purchasers who have conducted their own research, by consulting with REISA members specialising in the area, researching property sales data and comparing the features and asking price of homes for sale will be in the best position to make an offer with confidence.
At auction, the nature of the auction method of sale ensures all bids are out in the open and you know exactly how much you need to pay to secure the property.
Outside of auction, the process is a little different. There are some important points to remember when you sit down to formalise your offer to purchase:
- all offers must be in writing
- the salesperson must submit all written offers to the vendor
- the property will remain on the market while the vendor considers each offer
- offers can be conditional upon a building inspection, bank/financial institution loan approval or any other terms incorporated into the contract by the potential purchaser or vendor
- each offer can include a date by which the offer lapses
- both the purchaser and vendor have to sign a contract of sale document before the offer is legally binding
- before a vendor accepts an offer, the salesperson must ensure the vendor has been presented with all written offers and has been advised of any offers communicated to the salesperson (but not recorded in writing due to time constraints).
Once the offer is in writing and presented to the vendor, it is up to the vendor whether to accept. If they do not agree to the written offer, the real estate salesperson may come back to you and ask if you wish to make a further offer. Making another offer must be carefully considered, depending on your finances and how keen you are on securing the property.
It is worth remembering that price considerations, while undoubtedly important, do not ensure your offer will be the one accepted. A purchaser who has financial arrangements in place, and is prepared to be negotiable on settlement dates to suit the vendor may well gain the edge in negotiations and your offer should take all of these considerations into account.
When you make an offer, treat it as your best and final offer. Other hopeful buyers may be vying for the same property so you may not get a second chance.