25 Jul Yay! It is Time to Make an Offer!
The time has come! You have found the perfect property after what seemed like months and months of searching so what do you do now?
Well it is game time.. It is time for you to make an offer on the property.
Before you start looking for a property have a look at my blog http://www.krissyjenkinsproperty.com/the-16-steps-that-you-will-take-to-buy-your-new-home/
Personally, I think it is super important to have great lines of communication with your Agent. Ask them what is the process to make an offer. In my Agency I will usually get my Buyers to fill out an Expression of Interest form. This form includes information such as:
• Your full name/s that will be going on the contracts. Make sure this is your legal name that you are recognised legally by. There is nothing worse than having the contracts fully signed and then them going up to the Solicitors and having them redone again.
• Your address and contact details including best phone numbers and email address
• Your purchase price offer. I would discuss this with your Agent as to what the expectations of the Owner are. If you are worried about over spending you can ask for relevant market data to substantiate the price expected. Don’t go in too low as this sometimes can be a hinder to the negotiations. In a moving market where there is lots of competition from Buyers you can lead with your best offer first up.
• Your Deposit amount. The expectation is up to 10% of the purchase price but no more than that. I usually go for about 5%. Again, this is something you can discuss with your Agent.
• Your conditions of sale, for example Pest and Building and Finance. You want these conditions to be as attractive as possible along with the purchase price offer. As in previous blogs I have suggested that you really need to get Finance pre-approval so talk to your bank about how long they need to give you final approval. At this time we are usually seeing between 7-14 days for Finance. Pest and Building can usually be done within 7 days if you need a bit longer you can always ask for an extension.
Once you have signed off on this send it back to your Agent and the negotiations can begin. It is very unusual for an Agent to take an offer to a Seller that is not in writing so be prepared to fill in one of these forms or even a written Contract of Sale.
The Seller may come back to you with an alternative amount which you can choose to accept or you may counter offer again.
If you are writing your offer on a Contract of Sale make sure that you are happy with your offer and any conditions as once the Seller signs off on it, it is a legally binding Contract.
Good Luck and Happy Buying!