Buying your own house or unit will probably be one of the biggest financial decisions of your life. So before starting serious deal-making, there are a few important boxes to tick:
1. Are your finances pre-approved if borrowing? And can you access money to pay a deposit when you sign a contract, either via a cheque or direct transfer from your account?
2. Have you completed all pre-purchase due diligence (i.e. does the title plan match the fence line; do you know body corporate fees/history; have you asked local authorities about future plans affecting local area/property, etc.)?
3. Have you chosen a solicitor or property conveyance expert to act for you at settlement?
4. Has your solicitor reviewed the property’s sale contract?
5. If getting a building and/or pest inspection, have you read these reports?
Five ticks? Great! Things are looking promising.
Can I make an offer on ANY property I’m interested in?
Usually, although it can depend on the vendor’s preferred sale method. If the property is booked for a public auction, ask the sales agent if its vendor will consider pre-auction offers.
If the property is for sale by private treaty and advertised with a listing price, its seller will almost always be open to negotiation. Ask the sales agent before submitting a formal offer.
If the property is for sale via expressions of interest (EOI), this translates as “make me an offer”. An EOI vendor doesn’t list a purchase price and, generally, the best offer is accepted.
Excellent. It looks like you are almost ready to buy your home.
Here are our top tips for making an offer on a property:
1. Know your values. How much do you offer? This is where extensive market research of recent comparable sales can give you the confidence to put a price on your desired property. Remember, listed prices are sellers’ wish prices, not necessarily fair market prices, so if you’ve been studying similar properties’ sale prices, watching market trends, and factor in the condition of the property, you are well placed to make a sound offer.
2. Put your offer in writing. One of the best ways to show the property’s seller you are genuine is to put your offer in writing. Present a signed contract of sale to the seller’s agent. Attach a deposit cheque if possible. The vendor may accept your offer, or not. But they will almost certainly take you seriously and be more likely to continue negotiating.
3. Pace yourself. The goal of a first offer is usually to start a conversation between you (the buyer) and the seller. If you offer your top price at the start, it will leave nowhere to go; too low and you risk losing the vendor’s interest altogether.
4. Stick within your budget. It is easy to get carried away when so much is at stake. You may have searched for months before finding “the one” and desperately want to lock it down. This is understandable, but do try to offer only up to your pre-determined limit. As this is probably the biggest financial commitment of your life, make sure you stay within your financial parameters.
Buying a house - once you’re informed and ready - can be one of life’s most rewarding experiences. Make sure you’ve taken advantage of all the resources available in ANZ Buy Ready, and happy hunting!