Sam: If you found the property that you want to purchase, there is some critical steps
that you need to take before you can call that dream property home.
Watch today's video as we guide you through the process of making an offer to purchase
a property.
We'll show you the steps to make sure you get a great price, settle the contract, and
don't miss any details that could have serious implications down the track.
Let's jump in.
Sam: The first step is to do research on the market.
Once you have decided on the property, you need to start researching so you know what a suitable
bid or offer is to put forward on a property.
Try using websites to compare recent sales of properties that have sold within the area
within the last six months.
You need to be mindful to compare similar properties as there are a number of different
factors that can have a significant impact on the price such as land size, the number
of bedrooms, or the architectural design.
Sam: The second step is deciding your budget.
Before entering into any sort of negotiation it's critical that you know your price range.
It's a good idea to get a home loan pre-approval so you know exactly how much you can spend
and you also know, if your offer is accepted, you'll be able to afford the loan repayments.
Remember that as soon as your offer is accepted, you're going to need to be ready to pay the
deposit as soon as contracts are exchanged.
Sam: If you want to know more about how home loan approval works, watch our video here.
Also, keep in mind there are additional costs on top of the purchase price such as stamp
duty, conveyancer fees, and even pest and building inspections.
Check out this video on the hidden cost of home loans.
Sam: There are three different types of a property sale.
Sam: The first type of sale is a private treaty sale, meaning you'll be liaising directly
with the real estate agent who's acting on behalf of the seller.
Sam: Another less common type of sale is a private sale.
This means you're dealing directly with the seller and there's no real estate agent involved.
Sam: Finally, a property can be sold at auction where buyers bid on a house publicly in a
transparent forum.
Even if a property is going to auction, the vendor can still accept an offer pre-auction,
which means the auction would be cancelled and the property would be sold.
Keep in mind that even if you are the highest bidder at auction, it doesn't guarantee the
property could be sold because the minimum reserve price set by the seller needs to be
met.
Sam: For more information on how to give yourself the best chance to win at an auction, watch
this video here.
Sam: The fourth step is to get legal advice.
Contract of sales can be very confusing and the details can vary from state to state,
so it's incredibly important you have the contract of sale reviewed by a conveyancer
prior to making an offer on a property.
It's smart to get the contract reviewed by a conveyancer early in the process as you
want to ensure that all different conditions have been accepted before making an offer
or attending an auction.
Sam: Offers can be made either verbally or in writing.
It's always beneficial to do it in writing as they're usually taken more seriously and
you've also got a paper trail of all communication with the real estate agent.
Sam: The fifth and last step is making an offer.
Whilst it might be tempting to make a low ball offer significantly under the asking
price, this can also send a message to the real estate agent that you're not a serious
buyer.
You also want to make sure you still get the best price you can.
Sam: An offer can either be conditional or unconditional.
An unconditional offer means there are no conditions attached and it's an outright offer
to purchase the property.
An unconditional offer can make your bid more attractive and can even be the differential
point to get your bid accepted.
However, you could be exposed to some risks such as agreeing to waive the finance clause
or the pest and building inspection.
Alternatively you could make a conditional offer with conditions
such as an extended settlement period or even the inclusion of appliance and furniture.
Sam: The more conditions on your offer could genuinely mean that your offer is less attractive.
However, it's really important to make sure you're making offers based on your unique
situation as there could be some conditions in there that are required based on your individual
situation.
Sam: Now, if you've done all of this and your offer has been accepted, don't celebrate too
soon as the deal is not done until both parties have exchanged on the contract.
Sam: So they have it; the five steps to making an offer on a property.
You should be feeling confident and prepared to go and make a competitive offer on a property.
Good luck and I hope that offer gets accepted.
Sam: Now if you're thinking of putting in an offer or even in the early stages of looking
at a property, jump onto lendi.com.au.
Our online home loan platform compares over 2,500 products from more
than 35 different lenders to get you the best product available.
We also have a team of locally based home loan specialists to walk you through the process
and answer any questions you might have.
Sam: If you're wanting some more information of the cost of buying a house or the required
documents, check out these videos here.
Finally, subscribe to our channel if you want great tips for home loans in Australia, and
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See you next time.