When a property feels like the one, it’s easy to focus on one question: how much should I offer?
Price matters. And while it can be the first thing a seller looks at, the conditions attached to your offer can also influence whether it stands out.
A strong offer isn’t always the one with the highest price. It’s the one that gives the seller and agent confidence the sale can proceed, while still protecting you as the buyer.
A good offer starts before the home open
Before you start making offers, it’s important to understand your budget, borrowing capacity and the other costs that come with buying a home.
REIWA President Suzanne Brown has previously said buyers should get clear on their finances before they start making offers.
“Really the first step in the process to buying property, whether first home buyer or any other buyer segment, is to look at your budget, your deposit, your capacity to service a loan and associated costs such as stamp duty, moving fees, pest and building inspections and lenders fees and charges,” she said.
“Once that is done, go to your lender and get a written pre-approval for any money you may be borrowing to purchase the home. Include a small buffer for any unexpected costs, or repairs that may be needed.
“Pre-approval of borrowed funds is crucial: it gives you both peace of mind when searching, and provides certainty for you and the seller. When you are ready to make an offer, pre-approval shows the selling agent you are serious and ready to buy.”
This is particularly important if you’re a first home buyer. You may be new to the process, but being prepared can help you put forward an offer that’s clear, realistic and more likely to progress smoothly.
Understand your finance conditions
Finance-related conditions are some of the most important parts of an offer.
A subject to finance condition means your offer depends on you getting formal loan approval by an agreed date. This is different from pre-approval. Your lender still needs to assess the property, the contract and your circumstances before giving formal approval.
Other finance-related conditions may include subject to sale, where your purchase depends on you selling another property, or subject to settlement, where your purchase depends on the settlement of another property you’ve already sold.
These conditions can be important protections, but they can also affect the strength of your offer. A seller may see an offer that depends on another sale as less certain than one from a buyer who already has their finance arranged.
That doesn’t mean you should remove conditions you genuinely need. It means you should understand what each condition does, how it affects your offer and whether the timeframe is realistic.
Be cautious about waiving a finance condition if you need a loan to complete the purchase. If finance isn’t approved and you can’t settle, there may be serious consequences.
What inspections mean for your offer
Building and pest inspection conditions are common, especially for established homes.
They give you the chance to better understand the property before settlement. A building inspection can help identify major defects, structural issues or safety concerns, while a pest inspection can identify termite activity, damage or conditions that may increase the risk of future pest problems.
For the seller, an inspection condition adds another step before the sale is confirmed. That doesn’t mean you should avoid it, but it should be clear and realistic.
Inspections aren’t usually intended to reopen negotiations over every small issue. Most established homes will have some maintenance items. The aim is to identify significant concerns and set out what happens if they’re found.
Make settlement work for both sides
Settlement is when you pay the balance of the purchase price and ownership of the property transfers to you.
The settlement date can affect how your offer is viewed. Some sellers may want a longer settlement because they’re buying another property or need more time to move. Others may prefer a shorter settlement if the property is vacant or they’ve already moved out.
Ask the agent whether the seller has a preferred settlement timeframe. If you can meet it, this may help strengthen your offer without increasing the price.
Before agreeing to a date, check with your lender and settlement agent. A settlement timeframe should give the seller confidence, but it also needs to be realistic for you.
A strong offer is a realistic offer
A strong offer doesn’t mean removing every condition. It means understanding what you’re agreeing to and making sure the conditions and timeframes are clear, realistic and achievable.
Before making an offer, speak to the right professionals, including your lender or broker, settlement agent and building or pest inspector where needed. A REIWA agent can also help you understand the offer process and what to consider before putting an offer forward.
