How to Make an Offer on a Property
Finding the Right Property for Your Budget
Buying a home is an exciting milestone, but what comes next? In this guide, we’ll walk you through the steps to make an offer and seal the deal.
Most people buy a home only a handful of times in their lives. It’s no wonder that many buyers—whether first-timers or seasoned homeowners—feel uncertain about the process.
If you’re unsure how to make an offer on a property, keep reading as we break down the steps to take you from house hunter to proud homeowner.
Step 1: Talk to Us First
Before making an offer, ensure you can follow through with the purchase.
- Understand Your Borrowing Power: Call us to discuss your borrowing capacity, which, combined with your deposit, sets your buying budget.
- Home Loan Pre-Approval: While not mandatory, having pre-approval can streamline the process once you find the right property.
- Get Ready for Settlement: Once you’ve found your dream home, start the finance process immediately to ensure your home loan is ready for settlement.
Step 2: Request a Copy of the Contract
When you find a property you love, ask the selling agent for the sale contract.
- Review with a Professional: Have the contract checked by your solicitor or conveyancer to identify any conditions favoring the seller.
- Use Conditions as Leverage: Unique conditions, like a quick settlement, can be bargaining chips during price negotiations.
Step 3: Research the Market
By now, you’ve likely explored many properties and researched the local market.
- Understand Local Pricing: Knowing what similar homes in the area sell for helps you determine a reasonable offer.
- Leverage Market Insights: Use your research to make informed decisions.
Step 4: Negotiate for a Discount
Even if the property seems fairly priced, it’s worth trying for a discount.
- Current Market Trends: According to CoreLogic, sellers are accepting a median discount of about 3.4%.
- Potential Savings: On a $600,000 home, this could mean saving $20,400.
- Stay Within Budget: Always ensure your offer aligns with your financial limits.
Step 5: Submit Your Offer in Writing
When you’re ready, put your offer in writing to show you’re serious.
- Price Negotiations: Be prepared for some back-and-forth before reaching an agreement.
- Holding Deposit: Once an agreement is reached, you may need to pay a small holding deposit (around 2.5% of the purchase price).
- Next Steps: Notify us when your offer is accepted so we can coordinate with your lender to finalize your loan.
Step 6: Exchange Contracts
The sale contract may take a few days to finalize.
- Prepare for the Deposit: Check with the selling agent on how to pay the 10% contract deposit.
- Sign and Exchange: Both you and the seller sign and exchange contracts, officially sealing the deal.
Step 7: The Road to Settlement
Settlement typically takes 30–90 days, during which the property is transferred to your name.
- Behind-the-Scenes Support: We’ll work to ensure your home loan is ready for settlement day.
- Celebrate Your New Home: Once you receive the keys, we’ll be there to help you celebrate this milestone.
Additional Resources
Let Us Help You
Buying a home can feel overwhelming, but we’re here to simplify the process.
Contact us today to learn how we can streamline your home-buying journey.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.
