Finally, the search is over, and you’ve found the property you want to call your own. In your mind, the next step is to place an offer, however, there are a couple of tasks to do before you put the numbers down in writing.
The truth is, you won’t be getting anywhere without money. It’s important to have a pre-approval ready to go, and sufficient funds for a deposit on hand. Without loan approval, you can’t be entirely certain that you qualify for said loan, and entering into a contract without being able to source the necessary finance can lead to disaster. It could be as simple as losing your loan, or as dire as being sued for losses.
Something that is essential to consider before an offer is the condition of the property. The best way to do this is to complete a building and pest inspection, to ensure the property meets all requirements. This can be something that is done after the offer is placed, and the inspection can be a term of the contract.
Its important to know the proposed settlement timeframe and deposit terms. You can confirm these details with the vendor’s agent. Sometimes, vendors require specific terms, so its best to be safe by confirming these details before you place an offer.
Understanding the Contract
Reading over the s. 32 and ‘contract of sale’ yourself is one thing, but it can be incredibly beneficial to have a qualified legal practitioner do so as well. This way, you can confirm that the contract is exactly as you understand it to be, and that there are no surprises after you enter into the contract.. A legal practitioner can also help you understand other areas, such as caveats, strata fees, owner’s corporation issues, covenants, zoning and other issues.
It may seems obvious, but one question that must be asked is ‘is my offer realistic?’ By having knowledge of the market and knowing comparable properties in the area (both sold and recently listed), you’ll have a gauge of what a realistic offer on the property may be. Going in with a laughably low offer isn’t a particularly smart idea, especially in a strong sellers’ market. Presenting an unrealistic offer can jeopardise your chances of the vendor’s agent taking you seriously, and result in the opportunity to enter into negotiation being dismissed.
About Aurora Estate Agents
Aurora Estate Agents are a new breed of real estate professionals which are highly focused on their core values: integrity, accountability, transparency, client focussed and process driven. Aurora Estate Agents’ dynamic team is a collaboration of effective marketers, residential sales agents and residential leasing consultants.
South East Melbourne, which includes Berwick, Narre Warren, Beaconsfield, Clyde North, and Cranbourne is the country’s property boom hotspot. Aurora Estate Agents is perfectly positioned with a broad spectrum of property expertise to provide the best advice and skills for homeowners, investors and developers to ensure they continue to maximise growth and take advantage of existing market conditions.