How To Make An Offer
If you are interested on making an offer on one of the properties I currently have on the market, please contact me on 0402 297 355 or you can fill in my online offer form here.
When you are ready to make an offer on a home, tell the real estate agent, and give the relevant details, ie: your “price”, “deposit amount” and the date when you would like to take possession/settlement. Also add in any special conditions you require your offer to be subject to, including building and pest inspections, finance approval etc.
The real estate agent will then draft up the contract, explain it’s contents to you, and provide instructions as to how to correctly sign and initial the respective pages. They will allow you to have your solicitor / conveyancer proof the contract before you sign it and present it back to the agent. The agent may even commence negotiations based on your verbal offer.
The real estate agent will then draft up the contract, explain it’s contents to you, and provide instructions as to how to correctly sign and initial the respective pages. They will allow you to have your solicitor / conveyancer proof the contract before you sign it and present it back to the agent. The agent may even commence negotiations based on your verbal offer.
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Depending on the circumstances, the vendor will...
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1. Accept the Offer
If they accept the offer you have a contract based on the terms agreed to. |
or 2. Reject the Offer
If they reject the offer without coming back to you then you have the option of resubmitting another offer. (Beware of offers which are too low and offend an owner, the emotions involved may prevent them wanting to work with someone they feel is trying to “steal” their home). |
or 3. Countersign your Offer
They may countersign your offer. In which case you have the same three options (accept, reject, countersign). |
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Contract Signed and Dated
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As soon as the contract has been signed and dated by both parties, the real estate agent (or their company) will date the Contract (“Contract Date”) and forward the originals of the contract to the vendor’s and purchaser’s solicitors. The agent will also ensure that the vendor and purchaser are provided with a signed and dated copy for their records.
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Cooling Off Period
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This is a 5 business day period which starts when the property is Under Contract, where the purchaser can terminate the property for any reason, but will need to pay a termination penalty equal to 0.25% of the purchase price. The Contract does not become unconditional until all stated conditions have been satisfied (eg: building & pest inspection, finance approval, sale of existing property etc). This can take from 7-14 days or longer, depending on the conditions and what time frames have been agreed to between both parties.
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Insurance
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Please note, the property will pass to your risk from 5pm on the next business day, after the contract date. This means that you must get insurance on the property.
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Valuation/Finance
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Don’t be alarmed if your bank or lending institution requests a valuation by a registered property valuer. This is normal practice in all states of Australia especially if you’re borrowing more than 80% of the purchase price of the property. The Valuation Inspection will be arranged by your bank/lending institution within 14 days of the dated contract.
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Professional Inspections
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Depending on the property, there are a range of inspections to consider, including building reports, pest inspections, and pool inspections. Make sure the people doing the inspections are licensed and carry adequate insurance cover.
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Building & Pest Inspections
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In many cases you should be able to receive verbal feedback immediately after the inspection has been completed. A written report should follow and may include the estimated cost of any major repairs, and advice on preventing future problems.
The building inspector should report on the following:
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