The moment you walked through the front door, you knew you’d found your dream house within your dream budget. The only problem is that you’re not the only bidder who felt the same way.
In this article, we’ll discuss ways to make an offer on a house giving you a competitive advantage. Outbidding can often lead to overpricing and a decrease in value for money, but if you’re too complacent you may lose out on a bid.
If you know the right steps, you can get ahead of the game.
What is an Offer?
An offer is a legally binding document that is made in front of an agent. If your offer is accepted by the seller, you can’t retract the offer without high financial penalties. It states that you will honor the sales contract and any terms & conditions involved.
In Australia to make an offer legal, it must be made in writing in the presence of a real estate agent.
A real estate agent in Canberra will analyze the real estate market so that he/she can help you make the best competitive offer on a new home. The realtor serves your interests and budget first.
Read Also: How Does the Transfer of Equity Process Work?
The Right Steps:
- Get pre-approved for a mortgage first
The starting point is to get pre-approval for a mortgage lender first before making an offer. This shows the seller that your bid is legitimate and you have the right funds and financial backing to go ahead with the sales contract.
Pre-approval verifies your cost range and credibility making you a much more attractive buyer. Most sellers won’t take you seriously without one.
Pre-approval comes in the form of a letter from a mortgage lender and often has an expiry date. The great thing about pre-approval is it helps you work out your budget and financial forecasting in advance, so you know exactly what you can and cannot afford.
- Homework
Before making an offer, check and research similar properties in that area that have recently sold and for what price? If you find the right home, you may feel too eager to put in a high bid to secure the contract when you could have saved money. This money could be spent on other home-buying expenses such as interiors or legal fees. When you know the property value you won’t overbid or underbid. Underbidding can be an issue too as the buyer will often reject it unless they’re looking for a fast sale immediately.
When looking at a property don’t get over-excited. It may match your criteria but make sure you check the little details such as location, maintenance, age, condition, and functions. For example, do the ACs work? Is the water running? Is the home close to public transport or schools? Is a building project about to start next door that will create a lot of noise? All of these things factor into making the right offer.
Canberra real estate agents will have the above answers for you. They will help you make a fair bid out of your best interests.
- Make a connection
When you visit a property it’s not only the home on the show. First impressions always count and a seller can be interested in other things than just the sale price. For example, if the house is in a family neighborhood with young children next door, a seller will be more inclined to sell it to another family, rather than someone looking to rent the property out to noisy students.
Check with your real estate agent who the sellers are and what their background is. If you can find a way to connect, then they’ll remember you. Compliments always work, so tell them why you like their property and help them picture you living there.
- Hire the right real estate agency
A Real Estate Agent Must:
- Create a professional relationship with the seller and buyer to identify needs and secure bids.
- Do extensive research on the property market in that area to make the right bid on your behalf.
- Be able to identify issues with the property that may affect the offer amount.
- Work on behalf of the buyer’s best interests, rather than appealing commissions.
- Be fast and efficient when it comes to making an offer on your behalf so that you don’t miss out on a great opportunity.
Overview:
If you’re looking to become a buyer, rather than just a bidder, the real estate experts in Canberra can help you buy your dream home.
