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Time to make an offer
So it’s finally happened you found the perfect house in the perfect spot, where to from here?
No matter what the asking price of a property is or whether you think is good value for money don’t get caught up in all the excitement, REMEMBER the seller has possibly added $10,000 or more to the price he expects to sell the house for.
Don’t accept the listed price offered to you by the agent or the owner, this is where your negotiating skills will come into play.
The real estate agent is bound by law to approach the seller with any offer that you make so there is nothing wrong with making an offering $10,000 or more below the asking price.
Remember at present it is a buyers market meaning there a more properties for sale than people looking, so don’t be in a hurry to accept the sellers return offer without they accept your price, in that case get the contracts under way as soon as possible.
If they have come back to you with a return offer select a point 1/2 way between your original offer and their new selling price and ask the agent to re submit your new offer.
Remember all the money you save negotiating at this stage will help you in the future.
Conditions of Contract,
When drawing up the contract there are a few conditions that you should add for your Protection in case something does go wrong:–
- Subject to Finance
- Subject to approval of First Home Owners Scheme
- Subject to any repairs etc.
There are 2 Subject clauses are a must as far as I am concerned and very important. I would not buy a house brick or otherwise anywhere in Australia without these two inspections.
- Subject to Building Inspection
- Subject to Pest Inspection
We will talk more about them in our next article.
Contract are not binding until signed by both parties so if the price is right you don’t want to give the sellers time to change their minds but at the same time you need to protect yourselves.