Brian and Jane were looking to buy their first property together and they found one that they liked in the beautiful Perth suburb of mount Hawthorne - but they needed to make a compelling offer to secure it.
Now for them they had a very healthy budget of 1.2 million dollars, however the property that they fell in love with was actually going to market for 1.2 million plus.
What we needed to do was craft a compelling offer so that the agent could present it to the vendor so they had the best chance of having their offer accepted. Now the first thing we made sure that they had in place was finance pre approval. 'cause what this does is sends a message to the vendor that you’re serious about buying.
Get your finance pre-approved.
Think about the actual amount of your offer. now round numbers such as $500,000 for arguments sake, it, psychologically it doesn’t come across like you really thought it out. But if you put in 503,500, for arguments sake, sending a little but more, but the owner's gonna think, well, they might have really stretched themselves to get my property and it just has a slight difference in the way that an owner may view your offer.
Make your offer and odd number.
Now verbal offers are thrown around all the time so its definitely in your best interest if you’re serious about buying a property, is to put your offer in writing. now its important for a couple of reasons. one, it seconds a message that you’re serious, but two, it gives the real estate agent the best ammunition to be able to help you get your offer accepted with the vendor.
Put offer in writing.
Another thing that’s really good to consider if what the vendor circumstances are. and there are other things other than actual dollars that can make an offer look very attractive to an owner. For instance, if they’ve bought another property, they might really like the idea of having a shorter settlement. or conversely, if they haven’t bought yet, they might really prefer having a longer settlement being offered to them, or perhaps even a lease back offer.
Tailor to vendor's circumstances.
Keeping conditions to a minimum is a very good strategy. if you can avoid putting in a finance clause ah safely, because you’ve checked it out, or you can avoid putting in ah subject to solicitors 'cause you’ve already had that checked out prior, because particularly when there's competing offers in place, if the prices are comparable, it makes sense that the agent has an easier job of getting yours over the line with few conditions or none, compared to another one that has onerous conditions attached.
Keep conditions to a minimum.
The best way to represent an offer in my view, if you’ve done all your due diligence in the lead up, is to actually present your offer in the form of a signed contract, with a deposit cheque. If you’re in NSW you want to make sure that your offer mimics auction conditions which means there's no cooling off period, and that’s very very attractive to an owner. Now, in order to get that, you need to go to your solicitor and have that contract reviewed and they'll issue you with a 66W certificate. Now that, in my view, is the best way to get an offer accepted.
Make offer with contract & deposit.
Now the good news is that Brian and Jane did put their offer in at 1.2 million dollars and it was accepted, because they put it in writing, they attached a deposit cheque and they made it so there was no conditions attached to the property