Things to Do Before Making an Offer On A Property
1. Examining What You Need to Know Before You Make Your Offer
So, you think you’ve found the perfect property and you’re ready to buy it? Your buyer’s agent in Melbourne can offer plenty of advice, but there are a few more steps to take before making your offer. It involves a lot more than sending a figure to the seller’s agent. Working alongside your buyer’s agent in Melbourne, you’ll research the property and come up with a good figure to start negotiations.
Let’s look at the entire process in more detail.
2. Getting a Valuation
Most lenders will carry out registered valuations as part of the home loan application process. However, these valuations often take place after you’ve ended negotiations. Try to add a condition to your offer that states it’s only valid pending a valuation. This does carry the risk of the seller pulling out of negotiations, but a valuation will offer you a better idea of what the property is worth.
You should also check with the lender about the valuers they use. Make sure you work with somebody who the lender will accept as part of your home loan application. Otherwise, you’ll end up paying twice for the valuation.
3. Research the Property
Your buyer’s agent in Melbourne will point out how many buyers make the mistake of not fully researching a property before placing an offer. Avoid this by speaking to the seller about their asking price. Compare this figure with similar properties in the area. This gives you a general idea of how much the property is worth when you take the demand and location into account. It also helps to understand the reasons behind the sale. Some sellers want to get the process over and done with as quickly as possible. They may have already bought a new house, or have some other reason for wanting to wrap things up.
You can take advantage of this knowledge when making your offer. Motivated sellers are more likely to accept less than their asking prices, assuming you are a legitimate buyer.
A seller’s agent will try to assess how serious you are when you make an inquiry about a property. Don’t make it seem like you’ve fallen in love with the property, but make sure you express a proper interest. Being upfront about wanting the property makes the seller’s agent more likely to work with you. For example, the agent will contact you to let you know about other offers, so you can adjust yours accordingly.
Auction vs Private Sale
You have more room for maneuver with a private sale. There’s more time to make an offer, plus you can adjust your offer based on your negotiations with the seller. This allows you to stay calm and collected throughout the process. Auctions are different. They require knowledge of auction bidding tactics, plus they can draw you in emotionally. You need to avoid bidding emotionally, as this is what leads to people making higher offers than they should.
Those are the things you need to do to prepare yourself for making an offer. Follow these steps and you should be able to make an offer that accurately reflects the value of the property. If you need more help, contact one of our buyer’s agents in Melbourne.