10 Crucial Tactics for Making Property Offers in Australia
As a property buyer, making an offer on a house is more than just stating a price you’re willing to pay. It’s a delicate process involving multiple variables and considerations, such as competition from other buyers, the property’s condition, and the seller’s situation. If you don’t handle these factors correctly, you risk losing your dream home or paying more than necessary.
The Australian real estate market, famed for its competitive nature, adds another layer of complexity. The last few years have seen a boom in property prices, making it harder to find affordable options.
Being a successful property buyer requires a comprehensive strategy and an understanding of various tactics that can give you an edge.
Fortunately, by keeping the following ten tactics in mind, you can maximise your chances of landing your ideal property.
Research Property Prices
Understand the local market trends and house prices in your desired suburb. Use online real estate resources for this purpose. The information provided will help you make a realistic offer.
Thorough research of property prices in your target location is vital to avoid overpaying. Websites like Domain and Realestate.com.au provide comprehensive insights into Australian property trends.
Reviewing these can give you a fair idea of what you can expect to pay for properties similar to the one you desire.
Pre-Approval
Get your home loan pre-approved. Sellers are more likely to accept offers from buyers who have already secured financing as it eliminates uncertainty about their ability to pay.
Sellers prefer dealing with buyers who have their finances sorted. Getting your home loan pre-approved gives the seller confidence that you can follow through with your offer, making it more likely for them to accept your bid.
Know the Seller’s Motivation
If possible, find out why the seller is moving. A seller in a hurry is more likely to negotiate on price.
Knowing why the seller is selling can give you leverage in negotiations. For instance, if they are relocating for work or have already bought another property, they might be more willing to negotiate on price.
First or Last
If there are multiple offers, try to be the first to make an offer or the last. The first offer sets the benchmark, while the last gives you a chance to top all previous ones.
Making the first offer could put you in the driver’s seat, as it establishes the baseline for any following offers.
On the other hand, being the last to bid gives you the chance to outbid all previous offers if you’re truly set on the property.
Professional Inspection
Engage a professional to conduct a thorough property inspection. If they find issues, you could negotiate a lower price due to repair costs.
A professional property inspection can help uncover potential issues like structural defects or pest infestations. If the inspection reveals any significant problems, you could use this as a negotiation point to lower the price, reflecting the cost of future repairs.
Include a Cooling-off Period
In some states of Australia, you can include a cooling-off period in your contract. It allows you to change your mind within a specified time, giving you a safety net.
A cooling-off period is a certain number of business days during which you can withdraw from the sale even after signing the contract, typically with a minor penalty.
This period varies across Australian states, so check local laws to see if this is an option.
Make a Conditional Offer
An offer contingent on obtaining finance or a satisfactory building report protects you from unwanted surprises.
By making your offer conditional upon finance or a positive building report, you can back out if your loan isn’t approved or if a professional inspection uncovers substantial issues.
This ensures you aren’t locked into buying a problematic property.
Keep Emotions in Check
When negotiating, keep your emotions under control. You might love the property, but showing too much enthusiasm can put you at a disadvantage.
While it’s understandable to become attached to a potential home, showing too much eagerness can harm your negotiating position.
The seller might perceive your enthusiasm as a willingness to pay more, so try to maintain a balanced and professional demeanor.
Always Negotiate
Even in a hot market, don’t be afraid to negotiate. Sellers often set a higher asking price expecting buyers to negotiate down.
Many buyers hesitate to negotiate, fearing it might turn the seller off. However, most sellers expect a bit of bargaining and set their asking price accordingly.
Don’t be afraid to negotiate; the worst they can say is no.
Engage a Conveyancer
Hiring a conveyancer to handle the legal aspects of the property transfer ensures you meet all legal obligations, reducing potential issues down the line.
A conveyancer handles the legalities of the property transfer, ensuring that you meet all legal obligations, reducing potential complications later on.
They manage tasks like contract review, conducting property searches, and arranging settlement details.
In conclusion, these tactics will better equip you for the challenging yet exciting journey of buying a property in Australia. So, make your offer with confidence and secure your dream home in Australia’s dynamic real estate market.