How to: Make an offer on a property

How to: Make an offer on a property
Jennifer DukeDecember 7, 2020

You’ve done your research, your due diligence and you’ve found the property you want to buy. Now what? It’s time to submit an offer on the property. This can be a nerve wracking part of the process as you wait to see how much competition you face and just how much the vendor is likely to sell for. However, in most states and territories, it’s a relatively simple process.

If you’re interested in negotiation, you may want to read our guide: How to negotiate the property price you want.

Offers can be as informal as a verbal price suggestion, or as formal as a signed contract with conditions and details attached. The approach is, largely, up to you. In Queensland, written offers are pushed for and are most common. Written offers must be presented to the seller unless it is below a pre-determined value and can be useful starting points for sellers and buyers. Similarly, they offer a degree of formality beyond a verbal agreement, which cannot be relied upon.

An expression of interest may see you required to pay an initial deposit, as this proves that your offer is serious. This doesn’t, however, ensure you have the property nor that it will even get taken down from being listed. The deposit will be refunded if you don’t enter a contract to buy the home.

When an offer is accepted, you need to be ready to sign the contract of sale and go through the buying process. Before this time there is the risk of being gazumped by another buyer - that is when the vendor accepts another offer even with a verbal agreement to buy the home.

Unconditional and conditional offers

Offers can be presented similarly to the below, which is an example of a conditional offer:

We would like to make a formal offer of $X to the vendor for the property [address]. This is subject to the following conditions.

[Legal review of the contract, property valuation, inspections, finance similar]

Potential time limit for the offer.

Unconditional offers can also be made that don’t provide the ability for you to leave the offer should termite damage or similar be found. These can be enticing for vendors, and you will be legally required to go through with the process. You may be more familiar with these a auction. Buyers are most likely to add conditions around inspections and their own financing.

You can offer multiple offers at any one time – perhaps one for a lower price unconditional, and one for a higher price requesting access.

Where to now? Here observer Cameron McEvoy explains the eight steps that every buyer takes after submitting an offer.

Recommended step: Get a copy of the sale contract from the real estate agent prior to time and have it examined by your conveyancer.

RECOMMENDED READING:

How to get your low offer accepted

Caution you need to take when making an offer

Five questions to ask before making that offer

Jennifer Duke

Jennifer Duke was a property writer at Property Observer

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