You’ve found your dream home, the price is in the ballpark, building and pest inspections are clear – now all that needs to happen is for the vendors to accept your offer.
Sometimes it’s not as simple as making an offer and the vendors accepting it. There may be competition, they may not think you’re serious or they’re fishing for a decent offer before auction day.
Regardless of the circumstances, there are some ways to “cut to the chase” when it comes to buying property. Stephen Bock, Sales Director of Ray White Manly on Sydney’s Northern Beaches has had more than 15 years experience in the industry and he has the same advice for parties.
“Many buyers want to make a verbal offer and as an agent, I always advise my clients not to take those offers seriously,” he said.
“We guide our owners to only consider offers which come via a signed contract, it really shows who is serious and who is just kicking the tyres.”
Mr Bock said he would recommend serious buyers take this approach, and attach a letter stating their price and attaching a cheque for 10 per cent deposit, which they deliver to the agent.
“This approach really puts the buyer in the front seat,” he said. “Normally, they would have a five-day cooling off period attached to the contract.”
Mr Bock also had some advice for buyers when dealing with the selling agent, namely asking them what their opinion of value on the property was.
“Agents have to answer transparently around what their opinion of the true value of the property is,” he said. “In the old days, agents may have under quoted to buyers and then tried to get the price up for the vendor”.
Mr Bock said he prefers to avoid vendors who have unrealistic expectations of the value of their property, “it is better to work with realistic sellers whilst still working towards maximising the sales price for them”.
Stephen’s tips for buyers and sellers
- We have a much more educated market these days. People are aware of what is happening in their area, so it pays to do your research.
- Take advice from a professional. Don’t just watch a TV show or listen to mates for property advice. Shop around and do your homework.
- A lawyer may only advise their clients to put in a verbal offer, not make an offer via signed contract. This may create a situation where you miss out on the property against a party that puts an offer in via a contract.
- Take advice from experienced real estate agents. Shop around in your area and don’t always take the one with the lowest commission or a free trip to Fiji.
NOTE: The comments in this article reflect the opinion of Stephen Bock and do not necessarily reflect the opinion of Aussie Home Loans. We recommend that you obtain your own research and legal advice before deciding how and when to make a property offer.