Negotiating an offer can be a daunting task for buyers, especially if you’ve never made an offer on a home before. The team at KDD Conveyancing Services have come up with our six tips to ensure you can place the right offer on the house of your dreams!
- Do your research
The first step in making a strong offer is to research the local housing market. Look at the prices of similar properties in the area and take note of any recent sales. Tools like propertyvalue.com.au and reiwa.com.au are a great way to understand what a reasonable offer might be. You can also ask the real estate agent for their opinion on what a property is worth but bear in mind, they are working for the seller.
2. Get pre-approved for a mortgage
Before making an offer on a property, it is important to get pre-approved for a mortgage. This will give you an idea of how much you can afford to spend and will show the seller that you are a serious buyer. Having a pre-approval letter from your lender will make your offer more attractive to sellers.
3. Make a strong offer
When making an offer on a property, it is important to make a strong offer that is both competitive and reasonable. You don’t want to offer too little and risk losing the property to another buyer, but you also don’t want to offer too much and overpay for the property.
4. Be flexible
When negotiating an offer, it is important to be flexible. Be willing to compromise on some terms of the sale, such as the settlementdate or the inclusion of appliances or furniture. This can make your offer more attractive to the seller and increase your chances.
5. Stay within your budget
When negotiating an offer on a property, it is important to stay within your budget. Don’t get caught up in the excitement of buying a property and overpay for it. Stick to your budget and only offer what you can afford to pay.
6. Be prepared to walk away
It is important to be prepared to walk away from a property if the seller is not willing to negotiate. Don’t get too emotionally invested in a property and be willing to walk away if the deal is not right for you. The supply of houses at the moment may be tight, but it’s no reason to overpay or purchase a property you aren’t happy with
If a seller does counter your initial offer, it is important to carefully consider their counteroffer and respond in a timely manner. You can either accept their counteroffer, make a counteroffer of your own, or reject their counteroffer and walk away from the deal. Counteroffers can include not just negotiations on price, but also on the conditions and sale inclusions so consider these as well.
Negotiating an offer on a home can be stressful and overwhelming, but with the right preparation and support, it can be a smooth process. As your local settlement agent in Perth, the team at KDD Conveyancing Services understand residential settlements and the best way to navigate them. We offer a comprehensive contract review service to our clients, looking through your contract before signing and ensuring any conditions or requirements you have are included. Let us help you negotiate an offer for the property of your dreams!