Buying your first home - the art of making an offer and negotiating

If you’ve done your research, got your finance sorted and decided on a property to invest in then now could be the time to make an offer. With that being said, let’s get your negotiating and bidding skills in check so you’re ready to go sooner rather than later. 

Making an offer on a house

Making an offer is a very important (and exciting!) step towards buying a property. Now that you have a clear idea of the type of property you’re after and its approximate price range, it’s time to determine your upper and lower limits of your offer price.

For example, you could start with a slightly lower price than your upper limit, which leaves you with a little more room for negotiation. However, you don’t want to make an offer that is so low that you’re effectively shut out of the market. 

We can chat about your plan in a little more detail to see what will work best for your situation. 

Negotiation is an art

Negotiation is a crucial part of the buying process, one that could decide between a profitable price and a considerable loss in comparison with the market price of the property.

You could invariably expect the seller to push your offer as high as possible in an effort to squeeze every cent out of your budget, and possibly stretch it even further.

You would end up revealing the upper limit of your bargaining price if you were to respond to every nudge and call from the seller. Keep your cards close to your chest and abstain from revealing your final offer.

The auction process

An auction can often be unnerving even for the most confident bidders – to bid in an anxious crowd and put up a claim to the property that you like may seem like a never-ending moment.

Nevertheless, auction is a reality in the life of a buyer, and when it comes to the day, you need to be as prepared as possible. 

How to bid in an auction

Auctions are conducted in strict accordance with the provisions of law, and it is important to know the legal processes and requirements involved. The auctioneer makes one bid on behalf of the seller, and prospective buyers take it up from there.

You could also make an offer prior to the commencement of the auction, but you stand the risk of overpaying if you do so. State laws on the bidding process could vary, and it is important to do your research before arriving at the auction. Visiting multiple properties before bidding in an auction, and also visiting a few auctions, would give you a fair idea of what to look forward to in a property auction.

If you turn out to be the highest bidder of the property, you will need to pay the deposit and sign the contract then and there. The standard deposit is 10% on fall of the hammer. Auction purchases do not feature cooling-off periods, so it is critical that you are sure about your offer price before making the bid.

You've got this!

Making an offer, negotiating with the seller or their agent, and bidding in auctions are important processes that would help you go up the learning curve. And the more comfortable you are with them and the legalities involved, the more likely are you to get the prized property that you want.

If you’re looking to buy a home, make the right call and get a mortgage broker to assist you every step of the way.  Call the team at Homeward Finance on (08) 8179 0500 to make an appointment or click on the link below.

Article source: www.loanmarket.com.au

Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.

7 benefits of using a mortgage broker

There are many moments you’ll need advice, support, suggestions and experience on your side during the journey to buying a property. 

One of the benefits of a broker is that we’re with you every step of the way: from the moment you consider buying, to budgeting, understanding the real estate market, securing a great loan, putting an offer in, negotiating with agents, settling and moving, revising that loan when life changes, accessing specialists like solicitors and valuers, settling in, buying future properties and eventually helping your children do the same.

Here are seven non-financial ways I can help you: 

1. Suburb stats. You know where you’d like to buy, roughly. Tell me the areas you’re considering, and I will research market trends, prices, demand and opportunities. I have access to brilliant resources that inform smart decisions. What’s going on with capital growth there? Are investment yields attractive? How tight is supply, and how strategic will we need to be when making an offer? This information helps you buy intelligently. 

2. Cash coach. You might not yet have reached your goals for the deposit, or you might need to prove to lenders that you’re disciplined with your dollars. I’ll create a plan for you… a realistic one… and help coach you through so that when the banks see your bottom-line they’re simply blown away by your financial skill and are happy to lend you the full amount you’re seeking. 

3. Mental move. The moment you decide you’d like to buy, I’m your resource to discuss, debate, and determine the best course of action. Sometimes, the process from the initial idea to actually moving is a matter of months and sometimes it’s longer. I’m there for you from the dream to the day you park in the driveway. 

4. Lifelong relationship. After moving in, interest rates might fall… I’ll be there to adjust your loan when needed. Maybe a year later, you start a family, this will change your financial situation… I’ll be there to review your loan accordingly. Two years later, you might want to buy an investment property… I’ll be there to handle your mortgage needs. And many years later, your first born might aspire to buy… I’ll be there to help them learn to budget and get their foot on the property ladder. Now, you won’t get that with a bank!

5. Agent advice. Buyers beware of the trickery you can experience when making offers and negotiating with sellers and agents. Lucky for you, I’ve been there and done that with thousands of clients. I can read the tea leaves, so to speak, and can help you secure the home of your dreams without overpaying during negotiation or auction, avoiding the typical traps along the way. 

6. Inspection intel. When you view the property, I’ll help you do your own due diligence before you send in a building inspector. You can save hundreds by eliminating a property during that first impression. Simple tips like testing the plumbing in the shower for heat and pressure, checking light switches, windows and doors, and walking the block to experience the neighbourhood… how’s the traffic, how well-kept are the homes, are amenities convenient to access, is there street parking? 

7. Savvy specialists. I’ve worked with solicitors, valuers, building inspectors and all of the other professionals that are required when making a purchase of property. If you need someone trustworthy and skilled for one of the steps in the process, I’m always happy to recommend or review your choices.  

Reach out today with your questions, dreams, ideas and plans… Let’s do this together. Give Homeward Finance a call on (08) 8179 0500 to start the process or click on the link below.

Article source: www.loanmarket.com.au

Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). Any refinancing is subject to lender imposed terms and conditions including but not limited to loan serviceability, valuations and confirmed capacity to service both any existing and revised lending arrangements. The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances.