How to make an offer on a house in Queensland. Learn advanced strategies in this guide to getting your offer accepted.
Buying property is something we only do occasionally, at most, in our lives. Yet knowing how to make an offer on a house, below asking price, can make a huge difference to any future capital gains.
Remember that Google is not your only tool, so please feel free to book a free 15 minute strategy call with me here to talk about how you can successfully make an offer on a house.
Research what the house is worth.
If you go to lots of open homes and keep up to date with what is being bought and sold in your area, then you will have a very good idea of the market value of any home you are seriously considering buying.
If you want to do a little more research to be sure you aren’t over paying on the property, have a look at these three strategies.
Price is the most important aspect, followed by the deposit you’re willing to pay. But there are other factors to be considered in the purchasing process, to do with the conditions of the contract.
Gauge the interests of the vendor – is he/she looking for the highest bidder? A long-term settlement? A buyer who can pay in cash right away? A very good offer that considers the vendor’s personal situation can turn the tide in your favor, especially when you’re anticipating competition.
The vendor may have unrealistic price expectations so even though you are offering what seems to be market price, you still may not get your accepted. However its also important that you don’t over pay for the property.
Conduct a thorough inspection on a house in Queensland
This is one of the most important things you need to do before you finalize your offer, because knowing the exact condition of the property can give you some leverage in negotiations over price – especially if it turns out that the house needs significant renovation or repair.
Be sure to include a ‘building and pest’ condition in the contract, with the sale subject to satisfactory results of a building and pest inspection from a licensed inspector. You should also conduct another inspection before you sign the contract and before settlement to ensure that the property has not changed since the last inspection.
Make sure you can get a home loan approved.
If you are talking seriously to a real estate agent, one of the first questions they will ask you is “do you have your finances in order”?
They want to know you are a serious buyer.
When you start to negotiate the house price, you will want to have complete confidence in knowing:
- Will the bank lend you money;
- What is the maximum amount you can afford to borrow and repay;
- How long will it take to get unconditional loan approval;
- How to make an offer on a house.
Be aware that in 2021, it has become much harder to get home loans approved, so I do not recommend entering into any negotiations to buy a house until you know where you stand financially.
It is best to have a talk to us before you start looking for a home, and certainly well before you go to make an offer on a home.
Put your offer in writing
In buying a house in Queensland, all offers must be made in writing; otherwise, the sales transaction is not considered to have begun. Hiring a good conveyancer can be a great help in this area, as they can review your offer and check that you have included the most appropriate clauses and conditions.
Note, however, that once the contract of offer is signed, there’s still a small window in which you can change your mind – this is called the cooling off period. This ‘five business day window’ allows you to pull out of the deal, however a fee of 0.25% of the purchase price may be payable.
Talk to a Mortgage Broker so you can finalize your offer.
Once you have had your offer accepted, get in touch with your mortgage broker straight away when buying a house in Queensland so they can officially kick-off the process of getting your home loan approved.
If you have already spoken to your mortgage broker, before making an offer, you may already have this information.
Either way, your broker will be able to advise:
- Confirm your ‘finance date’ – meaning when we think we can get your home loan unconditionally approved. Generally allow 3 weeks for this, or 4 weeks if it is a family guarantee home loan (this information is needed for when you go to make an offer);
- How much deposit you can put down to secure your offer (this information is needed for when you go to make an offer);
- How much you are prepared to pay for the property;
- Give you overview of the process to buy a property
- Talk to you about how to make an offer on a house; and
- How to get ready to apply for your home loan.
This session with me ensures you are feeling confident and informed for what is to come.
This post covers how to buy a house in more detail, and within the post you can read step by step guide required to get a home loan approved and settle on the property.
Be prepared for counter offers
These are quite normal in Queensland property transactions. You don’t get much time to decide, so you may want to ready with an alternative offer in case the counter offer is not to your liking.
Remember: there’s no need to rush forward, even in a competitive market. Rushing is when costly mistakes can be made, so take your time when buying property to ensure you’re checking every item off your list and doing your due diligence.