Learning how to put an offer on a house is a crucial step in buying a home. Crafting a strong written offer and determining the right purchase price can make all the difference in standing out to sellers. This blog will walk you through each step to help secure your dream home.
13 strategies on how to put an offer on a house
1. What is an offer?
An offer is a formal proposal to purchase a property at a specific price and on particular conditions. It is a crucial step in home-buying, signalling your intent to purchase the property.
When making an offer, you are presenting a proposal to buy the property under certain conditions. It’s essential to make your offer in writing to avoid misunderstandings. This written offer outlines the purchase price, any conditions you wish to include, and the proposed settlement date.
By clearly stating your terms, you set the stage for a smooth negotiation process and demonstrate to the seller that you are a serious buyer.
2. Understand the market
When preparing to make an offer on a house, it’s crucial to start by researching the properties for sale in your desired area. You should assess current market trends to determine whether it’s a buyer’s or seller’s market, which can impact your approach.
- In a buyer’s market, more homes are available than buyers, giving buyers more negotiating power. You may have the flexibility to offer below the asking price or request more favourable conditions, such as extended settlement periods or additional inspections.
- Fewer homes are for sale in a seller’s market, and more buyers compete for them. This often means you must act quickly and make solid, competitive offers, sometimes even offering above the asking price, with fewer conditions, to increase your chances of securing the property before other buyers.
- Take advantage of resources like the Suburb Report to better understand the area you’re considering, allowing you to evaluate if it’s the right fit for you. Resources like this offer valuable insights into local property trends, similar properties and recent comparable sales.
- Potential buyers should act swiftly to avoid allowing other potential buyers to enter the bidding process.
Understanding market trends helps you adjust your strategy accordingly, ensuring your offer is tailored to the current conditions and maximising your chances of success.
3. Secure your financing
Securing your financing is a crucial step before making an offer. Start by researching what you need to know about buying a house and understanding the essential financial considerations, such as having your deposit ready to go and comparing loan rates.
It’s essential to have pre-approval from your lender so you’re ready to act when you find the right property. Ensure you meet all the bank’s requirements to avoid delays in the approval process. Understanding all the costs involved, such as deposits, stamp duty, and other fees, will help you establish a clear budget.
HKY Real Estate also offers tips for working with mortgage brokers and lenders to ensure you secure the best financing options.
4. Decide on your offer price
Once you’ve identified a potential property, deciding on your offer price requires careful thought. Analyse the listed price with current market trends and your budget, considering the potential for negotiations with the seller.
Based on competition and property demand, you must decide whether to offer below, at, or above the asking price. This strategic decision is vital in ensuring your offer stands out while staying within your financial means.
Remember, both you and the seller must sign the contract of sale for the property to be considered sold, highlighting the importance of mutual agreement in the transaction process.
5. Working with a real estate agent
Finding the right real estate agent is essential when making an offer on a house. A good agent can guide you through the process, provide valuable insights, and help you negotiate the best price.
The skilled agents at HKY Real Estate will help you craft a compelling offer and navigate the complexities of the negotiation process, increasing your chances of securing your dream home.
6. Prepare your offer
When preparing your first offer, several key components, such as the price, conditions, and settlement period, must be included. It’s also important to incorporate contingencies like finance approval and building inspections to protect your interests. Seeking professional advice can provide essential guidance in these areas.
A real estate professional can help you draft a formal, well-structured offer that covers all necessary elements.
7. Submit your offer
After preparing your best offer, the next step is submitting it to the seller’s agent. Understanding the process and knowing the potential for multiple offers is essential. Staying competitive in these situations can make all the difference. Prospective buyers should be well-informed and prepared to act quickly in such competitive scenarios.
8. Wait for the seller’s response
Once your offer is submitted, the waiting game begins, and the excitement builds as you hope the seller accepts. There are several possible outcomes: acceptance, rejection, or a second offer.
During this time, you should seek professional advice from the agent and lender to ensure you’re well-prepared for negotiations or decisions.
9. Negotiate if needed
If the seller counters your offer, it’s time to negotiate. Real estate agents can be invaluable in these situations, helping you secure the best possible deal.
Be sure to consider the key questions when buying property to stay fully informed. It’s essential to remain within your budget and consider any conditions during negotiations to protect your interests.
10. Finalising the contract of sale
Once your offer is accepted, the process moves into the finalisation stage. This includes signing contracts, arranging inspections, and ensuring all conditions are met. It is essential to be aware of the cooling-off period, which allows you to reconsider your property purchase and cancel the agreement without penalty within a stipulated number of business days.
11. Legal considerations
Legalities are a critical part of the home-buying process. Before finalising your purchase, it’s essential to have a solicitor or conveyancer review all contracts.
Be aware of any local legal requirements for property transactions in Western Australia to ensure you’re fully informed and compliant with all legal obligations.
12. Due diligence
Due diligence is a critical step in the home-buying process. It involves researching the property, reviewing the sale contract, and conducting inspections to ensure you are making an informed decision.
As a serious buyer, it’s essential to conduct due diligence to avoid potential pitfalls. This includes reviewing the property’s title, checking for any outstanding debts or liens, and conducting a building and pest inspection.
Doing your due diligence ensures you get a fair deal and avoid costly surprises.
13. Celebrate your purchase
Once all contracts are signed and conditions have been met, you can call the property yours. Celebrate this exciting milestone and begin planning your moving checklist.
Securing your new home
Buying a house is a complex process, but understanding how to make an offer is key to securing your ideal home. HKY Real Estate has a team of experienced and qualified professionals across Perth who understand the ins and outs of the real estate market. If you want to make an offer on a house, contact HKY Real Estate today for expert advice and assistance in making your property dreams a reality.
For more information on our services, contact our friendly team or visit our buyer’s resources page.
