Making an Offer on a Property

There are several ways you can buy property in Australia. The most common ways are at an Auction or by Private Treaty. In this article we will cover making an offer on a property being sold by Private Treaty. As experienced Buyers Agents, this is something we do regularly, and we have gathered a few essential tips to help you improve your chances of success at the right price.

1. Do Your Research Before Making an Offer on a Property

Before making an offer on a property, it’s essential to determine the maximum price you’re willing to pay. This involves thoroughly researching comparable properties in the local area and monitoring their sale prices over time. Attending a few auctions can also be beneficial, as it allows you to understand the market dynamics and gauge the level of competition. If you feel uncertain about pricing, consider seeking assistance from a professional property appraisal to ensure you’re making a well-informed decision.

During property inspections, pay close attention to other potential buyers. Are they seriously interested in the property? What types of questions are they asking the agent? This information can be valuable when you’re ready to make an offer.

Ask the agent if other buyers have requested contracts, building inspections, or strata reports. This can give you an idea of the competition you’re up against.

Gather as much information as possible about the vendors, including their motivations, to make your offer more attractive. Ensure you complete all necessary due diligence, such as building inspections and contract reviews, before making an offer on the property.

2. Make Your Offer on a Property in Writing

While it’s not legally required, putting your offer on a property in writing is often the best approach. This helps to clarify the terms and conditions for both the agent and the vendor, reducing any potential misunderstandings or ambiguities. Additionally, a written offer signals your commitment and seriousness about purchasing the property.

Your written offer should include:

Property details, including the address and any relevant identifiers
The offer amount you’re willing to pay
The settlement period (typically 42 days, or another timeframe that aligns with the vendor’s preferences)
The offer expiry date and time, which can create a sense of urgency for the vendor to make a decision
Any conditions attached to the offer, such as the need to complete due diligence or finance approval
Whether the exchange of contracts will include a cooling-off period or be unconditional (for example, in the case of a pre-auction offer, you’ll need to provide a 66W certificate)
ustification for your offer amount, including comparable sales data and any issues identified during your due diligence process

When making an offer on a property in a competitive market, it’s advisable to keep the conditions of your offer as simple and straightforward as possible to enhance its appeal to the vendor.

3. Minimize Conditions When Making an Offer on a Property

An offer on a property that includes a signed contract and deposit cheque is generally more attractive to vendors. An offer without any special conditions or cooling off period is also likely to fare better than an offer with preconditions and delays. Vendors may even accept a slightly lower price for the assurance of an unconditional contract.

Be prepared to negotiate but keep your limits clearly in mind.

4. Act Quickly When Your Offer on a Property is Accepted

If your offer on a property is accepted, move quickly to ensure the exchange of contracts occurs as soon as possible. Maintain open communication with the agent until the exchange is finalized to reduce the risk of another buyer swooping in (gazumping).

Our Services

Homesearch Solutions can assist you make an offer on a property. Please contact us for further details by emailing Henry or phoning 0409 105 015. We offer a Negotiation service as well as a range of other services for buyers including our Property Search Service, Property Appraisal Reports and Auction Bidding.

You can see our buyers agent fees here.