Buying a Property – This Is How I Make An Offer

A massive and costly mistake people make on a regular basis is how they make an offer on a property.

At first, the idea seems exciting, but very quickly, it can turn into something quite daunting, then even scary and downright frustrating if you are unable to secure your purchase.

So today I thought I could share my strategy as to how I make an offer and the steps I take in that process.

  • Of course, every deal has it’s nuances, so it’s important to note that sometimes you need to be a touch flexible (and this is where the right advice can be invaluable), plus each state can have their own intricacies as well.
Buying a Property: Get an Idea of Market Value

Before you even think about making an offer, immerse yourself in the market. My advice? Review 50 to 100 properties of the size, type and in the location you are looking to buy. Track them in an Excel sheet. This is your strategic advantage to understand the true value of what you’re aiming to buy.

Buying a Property: Build Relationships with Agents

Meet local agents and build rapport. People like doing business with people they like. They are more open in conversation and are often willing to share more specific details if they know you are serious.

Buying a Property: When You Are Finally Ready to Buy

Understanding the vendor’s expectations is crucial. I always approach the selling agent with specific questions.

I start with a fairly relaxed and basic one:

Though then drill down:

If these questions stir unease or hesitation, you might just be shadow-boxing with your offers, so buyer beware!

Of course, there’s every chance you are led up the garden path here, though this process should give you a better idea where you stand.

Buying a Property: Inspections First, Offer Second

Complete all your due diligence before laying your offer on the table. This includes:

  • Property valuation
  • Building inspection
  • Strata report (if applicable)
Buying a Property: Chris Gray's Quote

Once you’re armed with information and ready to proceed, prepare your offer with precision.

First, make sure you get a contract from the vendor and have a solicitor (or conveyancer) look over the details to make sure everything is in order.

Then, put an offer amount on the contract that aligns with the expert valuation you received (not necessarily what the vendor expects and definitely not what you are willing to pay emotionally).

Finally (in NSW), add a 66W. This is a form that waives the cooling-off period when buying property. Why? It shows you are ready to buy now and are not going to simply string the vendor along and possibly waste their time.

Once you provide the agent with the signed contract and 66W…

This is a step that so many get wrong. They place an offer without giving a specific timeline.

If the agent has an open timeframe, they can continue to show the property, make calls, source potential buyers and even elude to an offer already being on the table (which can easily bump up the price like an auction – and you know I try to avoid auctions at all costs).

Anywhere from 12 hours to 24 hours is what our senior buyer’s agent Kel suggests, though this depends on the specific circumstances. Agents will try to control this time frame, though at the end of the day, it’s your offer and you call the shots. Don’t get talked into believing anything else.

Ideally, you should provide the offer and 66W just before 5pm on a weekday and place a deadline of just after 9am the following morning.

Definitely do not leave an open offer for them over a weekend, as that’s when they are most likely to continue showing the home and are trying to drum up business.

If the offer isn’t accepted the following morning, walk away.

Let me say that again. No matter what the agent says to you or what excuses are made, if the offer is not accepted by YOUR DEADLINE…

Every step in this process is about positioning you as a knowledgeable, serious buyer and not just another hopeful bidder. It’s also about controlling the negotiation.

Do not be drawn into agents trying to pull the strings. It makes sense that they want to try, though you need to be rock solid in your approach.

At the end of the day, agents respect buyers who show diligence, understanding and decisiveness. This approach not only helps in potentially securing the property at a fair price but also establishes your reputation for future dealings.

And make sure your finance is in order before you make the offer, so you have the deposit ready to go if it’s accepted!!!

Remember, buying property is a significant venture. While DIY can be tempting, recognising the value of experienced professionals, like a buyer’s agent, can save you time, money and stress in the long run. We negotiate property deals daily, which equips us with real-time market insights and negotiation prowess that are hard to match independently.

And that’s not to mention the relationships we have fostered with some agents over multiple decades, or our ability to focus on the numbers and not be controlled by emotions.

Buying property is an art and a science. Like any good strategy, it requires knowledge, timing, relationships and most importantly, knowing when to rely on the experts.

If you think a buyer’s agent could help in buying property, or are just curious to find out more about what we do, book a time to chat directly into my calendar and I’m happy to answer any questions you have.

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