Five things to know before you make an offer

Making an offer to buy a home can be a daunting process. There are decisions to make around price, conditions, and settlement date. Then you have to negotiate all those terms with the owner, who might have very different ideas on market value. On top of all that, throw in potential competition from other buyers and you have quite a situation!

Here are 5 key things to know before you make an offer. They will help you navigate this process and come out the other side with a home you absolutely love, at a fair price.

The process takes time

Naturally, when you reach the point of making an offer on a property, you want an answer as quickly as possible. Try to keep in mind that this is a huge life change for the owners, too. Every offer is an opportunity for the sellers to learn what their home is worth in today's market, and sometimes it can take time to adjust to market reality if that differs from their original expectations.

Don't be surprised if owners take a few days to consider your offer. Try and be patient. Good things take time.

There might be competition

Even in a buyer's market, good houses sell well. That means any time you offer on a well-presented home, you may find yourself in competition with other buyers. Don't be put off. Take it as a sign that you have good taste! You will likely benefit from the same situation when you come to sell the property again someday.

If you are in a competitive situation, give it your best shot. Make your price and conditions as attractive as possible.

Try and try again

Most owners aren't desperate to sell, and they want to test the market before accepting an offer. So if your first offer is turned down, don't lose hope. Even if they choose not to negotiate with you, don't quit. Give it some time and try again. See if you can adjust your offer by improving your price, conditions or settlement date to tempt the owner.

Conditions matter

When you make an offer it is essential that you complete your due diligence. If you are adding conditions to your offer so you can complete that due diligence after negotiating a purchase price, then it's best to make those conditions as attractive as possible by keeping the time frame

as short as you can. If you need ten working days to secure finance, then you are essentially asking the owner to take their property off the market for 2 whole weeks during this time.

Talk to your advisers before you make an offer to find out how quick the process can be completed if you found a home you really don't want to miss out on.

Know the market before you offer

Don't skip the research phase. Get to know comparable recent sales for the property you are trying to buy. Drive past those recent sales and look up interior photos online. Do you think they are worth more or less than the home you are offering on? Visit similar homes that are currently on the market in the same area to find out what else you can buy for your money.

Don't rely on auto-generated online estimates to tell you what to offer. Proper research will give you a much better understanding of market value.

Are you ready to start looking for your dream home?

Give us a call to talk about your requirements. We can help you find the right home to suit your needs and offer advice on getting your current home ready to sell.