July 12, 2023

Everything you should do before making an offer on a house

Before Making an Offer know about the process

Make an offer

Finding your dream home can be an exciting experience for many, but can quickly become stressful if the necessary steps aren’t taken. There are a couple things you should take note of to ensure a smooth and quick process before you make your offer on a property.

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Get Pre-Approval for Home Loan

While this step is arguably the most important, it is also the most time consuming part of the process. Once you’re set on buying a home, we advise that you start the process of getting pre-approval for a home loan.

Connect with a reputable mortgage broker or lender and they’ll work with you to discover your borrowing capacity. You’ll work together to complete an application for assessment.

Being pre-approved for a home loan increases your buying power significantly as it proves your financial capability to make the purchase which is favourable with some sellers.

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Inspect the home

After obtaining your pre-approval, you should conduct all the necessary inspections on the property, such as building and pest inspections to ensure you understand the current state of the property. Depending on the outcome, you may decide to negotiate further, or, retract an offer altogether and investigate other options.

Decide what you’re willing to offer

Firstly, you need to decide what you are financially able to afford and what you are willing to pay - bear in mind that these may not be identical figures. Your maximum figure that you can afford will need to take into account moving costs, legal fees, conveyancing fees (if applicable) and any renovation work that may be required. Your trusted mortgage broker or lender will be able to help you understand the costs associated with the sale.

Then, it’s time to start negotiating with a local real estate agent.

Be willing to negotiate Never have the assumption that your first offer will be the one that is accepted. It’s very rare for this to happen, so be prepared for a bit of a back and forth. Negotiation can be tricky and it can be intimidating if you are not confident about the process. However, there are a number of things you can do to help yourself.

The https://www.makeanoffer.au/process process of buying or selling a property does not have to be as nerve-wracking as many people think it is. By doing your homework, understanding your options and connecting with a local real estate agent, the negotiation process can actually be a thrill.

First, do your research. Remember that the asking price is usually a little lower than the seller actually wants.

Second, be realistic. Again, this goes back to figuring out how high you can comfortably go. Don't be swayed by emotion. You want to be able to afford your repayments.

Thirdly, timing. Many people think that the best thing to do is to wait until closer to the auction. This means that the seller and the estate agent may have a better idea of the level of interest in the property and may be more willing to negotiate or sell before the auction.

Finally, put your bids in writing. Be conscious of how and when you communicate, and avoid vague references to price when talking to agents. And when you quote a price, always include any conditions you have. This shows that you are serious about what you are offering.

Ready to find a property? Start searching now. https://www.makeanoffer.au

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