Any offer to buy or sell real estate property can be difficult because it can make or break a once-in-a-lifetime opportunity in getting a great deal.

To an inexperienced home buyer or would-be property investor, the uncertainty of putting down a mutually acceptable value never fails to open up a lot of questions about whether it’s too little or too much.

Making a good offer can be a tricky process, especially if you are making it for the first time and have no idea on how to do it.

However, there are ways to help property sellers or buyers determine how to make a great offer with confidence- one that can help make a decision without regretting it.

Anticipate, think ahead and plan

Make no mistake, it is critical to determine a realistic value even before deciding to take the first step in asking for information regarding a property that meets your fancy. Also, it is important that you be realistic about a selling price or a budget for your purchase – a value that you can confidently offer on a property.

Logically, this could save you valuable time looking for properties that you cannot afford, a mortgage loan you are unsure to sustain in the long term, or targeting the right market for expectant property buyers.

When targeting first-time buyers, start by doing your research to determine if you qualify for a loan, a government grant or an incentive such as the First Home Loan Deposit Scheme, among others.

Your budget plan begins by assessing how much money you can put up for a deposit.  In the case of the Australian real estate market, it is generally required for buyers to pay a minimum deposit for a home loan ranging from 5 per cent to 20 per cent of the property value.

Additionally, you also have to consider other costs such as building reports, stamp duty, legal costs, and Lender’s Mortgage Insurance if your deposit is less than 20 per cent. In most cases, you incur additional costs that vary depending on your current financial standing, which is why it is best to consult a solicitor or real estate agent about such costs that may apply to you.

You also have the option to secure a home loan pre-approval application to assess your qualifications and eligibility as a borrower.

Research is key

Doing your research as a due diligence aspect of your process is an important factor in the real estate sale or acquisition process. Finding and accessing the right information for the property you have in mind is best if you are able to determine the fair market value of similar properties in the area so you have a good idea of how to plan and make an offer.

Take note of the following research tips to focus on and help you better prepare to make an offer with confidence.

Research the locality

Search for similar listings in the area and check the details to get a grasp of the real estate property prices or valuation so you can compare it with your desired property options.

You can also check the area for information on crime rates, availability and access to commercial establishments, public and private transport options, property value trends, schools, businesses, churches, etc. It will help give you a clear picture of the property’s viability, overall liveability, safety and property value.

Seek a professional property valuation

Getting a property valuation from an independent professional assessor is a sure-fire way to get an accurate value of the property in mind. A professional assessor can inspect and prepare a detailed report that details the approximate market value of the property, as well as identify factors that determine the property’s current value.

The costs for a professional valuation may vary based on the range of information that is needed, so it is important that you find an assessor that provides you with the appropriate and valuable information that you need.

Assessing the risks and condition of the property

It is always wise to determine everything that needs to be known about any investment asset that you acquire, in this case, real estate property, which includes the condition and risks associated with it.

For instance, if a property is situated in a flood-prone area or if the structure is made of materials containing asbestos and may cost a lot to renovate or remodel. Being mindful of such risks can help you get better bargaining leverage when putting down an offer.

Other considerations include checking out all supporting documents related to the property and reading through it carefully to ensure that everything is in order.

Inquire if a pest or building inspection was conducted before you make an offer so you have a good idea before making your offer.

You can also check with the local council if the property is located in a bushfire-prone region, which requires specific construction standards for bushfire protection when constructing, remodelling or renovating a home.

Another consideration is to check with home insurance providers to determine the probable cost of home insurance premiums and determine factors that affect property insurance costs and coverage.

Ask what motivated the sale

Note that not all the details of what motivated the owner or vendor to sell the property, but will provide you with valuable ideas in understanding how you can relate to and determine their needs that can be beneficial in assessing your offer value.

For instance, the owner may not tell you of the urgent plan to sell, but the absence of interior furniture or fixtures could be a signal that the owner is planning to move out. Using this observation could help you set a good price for your offer.