The instant you find your perfect house you may breathe a sigh a relief. The months of house hunting has finally ended and it’s time to make an offer. However, many house hunters rush this stage and can often end up overpaying for a property or missing out altogether.
So what steps should you take when you are ready to make an offer?
Organise a home loan pre-approval
It will be beneficial for you to already have a formal pre-approval organised with a lender before making an offer. This pre-approval will give you the confidence to make an offer knowing you already have the finances to afford the purchase. Also, as you have already completed the initial stages of obtaining a home loan, you can make the offer quickly and not waste valuable time. Take a look at how you can get approved with our online pre-approval tool.
Organise a solicitor
A solicitor will be extremely helpful in organising the legal side of purchasing the property. They can also give advice relevant to your personal situation in regards to making an offer and signing the contract.
Make the offer on the property
When making offers and negotiating with the vendor (this is usually through their agent), it is best to make any opening offer low as increasing it is much easier than trying to retract a higher offer and replacing it with a lower one. Be sure to know the point at which you are prepared to walk-away and don’t go past it. This is also the time where you can include any conditions in the contract. Some examples may include:
• Building inspection
• Pest inspection
• Loan approval
If you and vendor do agree on a price, there are a few important steps you need to take. Firstly, you will need to take the contract and discuss it with your solicitor. Secondly, you will need to speak with your lender and get approved for a home loan and finally, you will need to organise any inspections to ensure you are buying a quality house.
Once you have satisfied yourself on these points, then your solicitor can guide you through the formal exchange of contracts. With most of the hard work done you can relax a little and get ready to pop the champagne.