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Putting in an Offer

Now that you know what you want, and have hopefully gained a 'Pre Approval', we'll look at the process and some of the things that need to be considered when putting in an offer. Firstly, you need to know if it is a private sale, it will exempt you from the REBA First Homebuyers Assistance Fund grant if it is. It has to be an offer written by a licensed Real Estate agent for the REBA grant to be claimed, given the property meets the eligibility criteria. This situation can be prevented if you have used a member of REIWA to write the offer, or by the home (property) from a licensed REIWA agent, to find out more about the REBA grant click here.

You will have the chance when negotiating, to make your offer subject to various conditions. You yourself will also be subject to certain conditions and criteria from the seller, things such as the offer being subject to finance, or to a termite (timber pest) and/or building inspection, confirmation additional structures, such as extensions and sheds are council approved, or it could even be subject to a repair to be carried out on the property. Regardless of the type of conditions on there, they need to be appealing to the vendor, given they are the party you are trying to have a meeting of minds with.

In certain circumstances, you may have the vendor (seller) want to rent the property back from you for a brief period after settlement. So ask the selling agent if there is anything the vendor requires in regards to the settlement and sale conditions. Don't forget you trying to keep the offer as clean as you can, a number of agents have said, 'too many conditions will make the offer less appealing to the vendor' and less watertight, so keep this in mind when writing up your offer with the agent or owner.

'Subject to Finance' would be the most common condition you would see on an offer, this will state the date the finance approval will be due. The finance date is normally either a certain amount of time, usually in weeks, from the offer being accepted (acceptance) or a specific date. Having a period of days from acceptance is preferable, as the offer may go backwards and forwards between yourself and the vendor a number of times, until it gets accepted. This time will be eaten away from your finance deadline if just a future finance approval date is specified. The most common and preferred methods are 14, 21 or 28 days from acceptance for finance approval. If you have been pre approved here, you can shave some time off this finance period. A pre approval makes your offer more appealing in most cases, given the vendor will not be able to market their property whilst your offer is going through the finance approval process. If you didn't gain a pre approval and would like to speak to a Mortgage Broker click here.

'Subject to a Timber Pest Inspection' is another common one, this is normally checking for timber pest activity, (including termites, fungal decay and borers) this is something you should always be mindful of. Termites in particular can do a great deal of unseen structural damage to a building, without any visual clue, they will eat structural timbers that are inside walls, under floors in some instances and inside your roof cavity. These are areas that require more than a casual look to guarantee no pest activity. To read more about pest inspections click here.

For older houses you may also want to make your offer subject to a 'Building Inspection', this involves a professional inspection of the structural integrity of the home you are looking to buy. This will involve you getting a structural report on your intended purchase, assessing the structure sound or unsound. To find out more on Building Inspections click here.

We also have some points listed out by experienced agents that you may want to focus on with your initial inspections and offers, to read these click here.

 
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