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5 Things to Do Before Making an Offer

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5 Things to Do Before Making an Offer

You’ve found the house of your dreams, and you’re ready to make it your own.

Before you place an offer, make sure everything’s in order. Check out these 5 absolutely essential things to do before making an offer.

house

Before you get started, do they take offers?

Before you even consider making an offer, make sure that the vendor is open to them. Some people have a firm price in mind and others prefer offers. Don’t waste your time, ask upfront if they field and accept offers.

1) Knowledge is key.

Find out as much as you can about comparable sales and offerings in the local area so you can confidently gain an understanding of the property’s value. Ask the vendor any pressing questions that you may have about the house’s history, condition or location. Scope out the local stores and get a feel for the area. Assess all aspects of the property, and make sure you’re absolutely interested before you place your offer.

2) Sort out your finances.

It is crucial that you are sure you are pre-approved for any loans that you may need. You must be certain that you have enough money on hand to place a deposit. If your offer is accepted you will need to pay a 10% deposit, make sure you have this money before signing any contracts.

finances

We recommend getting pre-approval for home loans as early as possible, so you have a strong understanding of your budget. The implication of signing a contract without pre-approval could be detrimental and costly.

3) Building Inspection.

If you have physically inspected the building, you should already have a fair idea of its condition. If you would like to make an offer subject to a clean building free of pests and mould, mention this to the vendor so it can be clearly stated within your sales contract.

Carefully read over the wording and make sure it meets your requirements. Purchasing a house without an understanding of its condition and cleanliness is risky, as any mould infestations or water damage could drain your pocket of a few thousand dollars.

4) Make an offer, don’t sign a contract.

Serious offers to purchase a property must be in writing, however this does not mean that you need to sign a sales contract. When sending in an offer, if you’re pressured or asked to sign a sales contract, take a step back.

There is no legal obligation to enter into a sales contract when simply sending an offer. There is a lot to cover before you sign a legally binding contract.

5) Ready? Go for it.

Make your intentions known to the vendor when you’re ready to place an offer. You don’t want to offend the vendor with an offer that’s too low, or hassle them and come across too eager. It’s far simpler than most think, just be open, honest and upfront, and ask the vendor ‘what would it take for me to purchase this property?’.

sign

The best way to go about making an offer is to have a strong understanding of both the negotiation process, and the property you’re potentially buying.

Make sure that the house is well suited for you and when you’re ready, place an offer at a reasonable price. You can’t go wrong.