How To Make An Offer

This video is all about the buying process and what steps can you take to ensure you get the best possible deal every time.

Making an Offer
To really be considered serious, you should put in a written offer by submitting a completed and signed Contract of Sale of Real Estate approved by your solicitor.
A written offer should have:

  • Price
  • Duration of the offer
  • Conditions. As a rule the less conditions you add, the greater chance of having the offer accepted.
  • Finance clause
  • Clause about making sure that all electrical appliances are working at settlement.

Anecdotal evidence indicates that attaching a cheque for 10% of the offer amount increases the chance of the offer being accepted.

Deposit
This can be a small deposit or the one stipulated in the contract, usually 10%, although agents and vendors now accept a 5% deposit. If you default on the deal, you’ll be liable for the full 10% amount.
Advantage of releasing the deposit: the advantage is making the deal more suited to the vendor’s needs in return for concession on things like price or access.
Disadvantage of releasing the deposit: how you can get your money back if the settlement didn’t push through.
If you put the money down whilst getting all your checks done, i.e. in the cooling off period, then be prepared that should you not go ahead you could get left with a penalty fee depending on the statues of each State and Territory.

Gazumping
Perfectly legal in some states, it is when your offer has been accepted by the vendor, but before contracts exchange, they sell it to another buyer without giving you a chance to increase your offer.
Until the contract exchange has taken place, the deal is not done, so be sure to have everything in place before submitting an offer and move quickly should it be accepted.

Engaging a Solicitor
All clauses that you or your solicitor adds to actual Sales Agreement are written in an annexure and added to the end of the contract document.

If you have found this video helpful then please hit the like button to let me know? And after hitting the like button, scroll down and tell me some of your experiences of making offers on properties. Leave a comment and let me know! or ask me a question. Jane

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