Oakbank / Mount Barker - RLA 173455 Blog

Purchasing Your Home

So - you have found a home and wish to make an offer - How do you go about it?

Submit an offer in writing including your price, deposit amount (usually 10% of the purchase price but this can be negotiated) settlement date and contract conditions.

Price: Be prepared to put forward a strong offer - at times there will be multiple interested parties looking to make an offer - in this instance be prepared to put forward your best offer - the Vendors may not come back to you with a counter offer - they may simply accept another offer that is more attractive to them.  Offer the money that you are not prepared to miss out on the property for - then if your offer is not accepted - at least you know you gave yourself every possible chance.  Don't think in round numbers - offer an amount that shows that you are putting forward your best offer i.e. $426,750 - you may just beat that other interested party that likely offered in 'round numbers' i.e. $425,000.

Deposit: This is usually 10% of the purchase price, however other amounts can be negotiated.

Settlement: By indicating a settlement date or time frame the Vendor can determine if this suits their situation - likewise - if you are negotiable on the settlement time frame - indicate what best suits you but also indicate that this is negotiable to suit the Vendors - this will soften your offer up as the Vendors are aware that you are also taking their needs into consideration.

Contract Conditions:

Subject to Finance - Should you require finance approval in order to purchase a home it is vital to have pre-approved finance in place - that way the Agent can identify that you are serious and convey this to the Vendors.

Subject to a Building and/or Pest Inspection - Have your building inspector in mind and if making an offer on a home where you require a building inspection indicate that you will have the inspection completed before cooling off expires - this way the Vendor can be confident that this will not potentially drag out over 10 days to a fortnight and you can confidently make a decision.

Subject to sale or settlement of your current home or investment - Be prepared - have your home appraised by several agents and be ready to 'hit the market' should you find your dream home - many owners are very wary of signing a 'subject to sale' contract due to the risk involved and possible time wasted should your home not sell.  

Once you are successful signing a contract on a home you will need to take out a cover note of insurance on the property until it is settled.  There is a 'Cooling Off Period' of 2 full business days after you have signed the contract, after this period expires you will be required to pay your deposit to the Agents nominated Trust Account.  As soon as finance is approved let your Agent know.

Feel free to phone your Agent and ask any questions throughout the process - however insignificant they may seem - your Agent is here to assist you in the purchase of a property - this is a big deal for you and you have the right to be informed.

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