How to present a good offer

When you have your eye on a new home, don’t be too tempted by the talk of a buyer’s market and think that you can wait until the price comes down before putting in your offer on the property. You might just lose out.

The best advice is to make your move as soon as you can. Evaluate your budget and the price of the property in relation to what it offers and how it compares with other properties in the area. If it looks like a good deal, you should go ahead and put your best offer forward.

Don’t be fooled into thinking that a seller’s market means sellers are desperate or that there are bargains aplenty. That might be the odd case, but rather discuss your offer with the agent and don’t waste time with low offers. If you are serious about the property, put in a serious offer.

Seeff’s agents offer a few more tips to ensure you put your best foot forward when it comes to the Offer to Purchase:

Sell before you buy
If you have a property to sell, then you should get it onto the market before you start hunting for your next house as few sellers will be willing to wait. Sellers will generally gravitate towards an offer without a contingency.

The 72-hour clause
It is common to grant the seller a 72-hour period during which they can continue to market the property after accepting an offer to purchase from an interested buyer. Should the seller receive a better offer, they would then provide written notice to that effect and provide an opportunity for the buyer to waive the suspensive conditions and go ahead with the offer to purchase within 72 hours, or the offer will be rendered null and void, freeing the seller to sign a deal with the new buyer.

Pay a deposit
A willingness to invest cash into the transaction shows that you are a serious buyer. You should also have the funds available to pay for the transfer duty (if applicable) and transaction costs. Having all of this ready in addition to being pre-qualified for home loan finance provides peace of mind to the seller.

Put your best offer forward
Even in a buyer’s market, you should put the best offer that you can on the table, or risk disappointment. Unless it is an urgent sale, the seller is likely to want a price which is market-related and close to the asking price (provided it is market-related to start with). Chat to the agent before you put in your offer to get a sense of the range that the seller would consider.

Multiple offers
It could happen that the property attracts multiple offers in which case you may well be required to consider putting in a counter-offer and up the price that you are willing to pay. If you are serious about the property, then it’s best to chat to the agent and ask for guidance.