Are you interested in taking the leap and purchasing your first Australian property? Are you unsure where to start and how to go about making an offer? Here are our top three industry insider tips on how to get started and how to get the best deal.
1. How to Get Started
Within Australia, the process of making an offer can sometimes vary depending upon the State you wish to purchase property in. You need to make sure you research the rules of your State – whether it’s Queensland, New South Wales, Victoria, South Australia, Western Australia or Tasmania – in order to know if a written or verbal offer is acceptable. Whenever possible, it is best to make your offer in writing. This avoids any mistakes or confusion that can be detrimental to the success of your offer.
2. How to Get the Best Deal
Step one: do your research. You want to put an offer on property that has the greatest potential for a positive future outcome.
Only once you have thoroughly researched the area, should you begin your next step of focusing on finding a property to purchase. Assuming you have done your due diligence – researched, physically inspected and feel completely knowledgeable about the specific property that you wish to purchase – should you move on to making an offer.
Many buyers chose to get a valuation done on the property. Generally, this is done after negotiations have begun as part of the loan process. If you want to quickly get an offer on the table, many go about doing this simply by adding a condition that the ‘offer is subject to valuation’. Some sellers may choose not to accept this condition, if say another offer has come through to the seller with no conditions attached. Which means you may lose out on that property.
3. How to Make an Offer at Auction
Some sellers chose to sell their property at auction. Making an offer at an auction is a bit of a different process. You might want to consider attending a couple of other auctions before the one you want to bid on, so that you understand the process and know what to expect. Plus, this might give you great insight into the strategies used by other buyers at auctions. Make sure to also check out the online resources available to you about what you need to do before the day of the auction, as these will vary from State-to-State.
On the day of the auction, don’t deviate from your budget. You will by now have worked out what you are willing to pay, so just remember that deposits are generally 10% of the purchase price. You need to ensure whatever you offer, that you have the funds available for the deposit.
When in doubt, seek professional advice. Even if it’s a friend or family member that has experience purchasing property, ask for advice on how to make an offer so that you are better prepared when the time comes.
