Buying

MAKING AN OFFER

Missing out on a property that you have your heart set on can be a very disappointing experience.  Quite often this happens because the offer process is misunderstood.  When making an offer to purchase a property, it is important to be aware of the following:

• The agent will submit all offers to the vendor.
• The property remains on the market while the vendor considers all offers.  Just because your offer is the first one submitted, does not necessarily mean that it will be accepted.
• Your offer may include a date by which it will lapse if not accepted.
• An offer may be made subject to a finance clause, i.e. bank approval, sale of an existing property or another consideration such as a builder’s inspection.
• You can make your offer conditional on certain items (such as a dishwasher) being included or excluded from the contract.  Any special conditions such as these must be written into the contract.

An offer is not legally binding on both parties until the buyer and seller have signed a contract.  A Contract must contain details of the property, the price, deposit and settlement terms.  Once the offer is made in writing, it is then up to the vendor whether or not to accept it or whether to give other parties the opportunity to increase their original offers.  The agent is not obliged to give you another opportunity to increase your offer.  The vendor is under no obligation until they accept the buyer’s offer by counter-signing the contract.

It may be worthwhile making an offer for a property before it goes to auction as this gives you an opportunity to negotiate through the agent and perhaps to stipulate any particular conditions you require in the sale.  If your offer is accepted, a cooling-off period may apply. For further information get in touch with the Real Estate Institute in your State or Territory.