What To Know Before Making An Offer On A Property

When you’ve found your dream property, it’s natural to want to make an offer straight away. However, there are important things to know and do before you reach that exciting moment and commence negotiations. Read on for some helpful tips to make the buying process as stress-free as possible.

Inspecting The Property

Pre-approval Is An Asset

Before you even begin considering a purchase, it’s important you’re aware of your financial situation. Obtaining pre-approval from a lender will help you know what you can afford and will give you room to move within your budget. When you reach the point of submitting an offer, pre-approval can give you an edge over other potential buyers. With a recent pre-approval you can be more confident in your affordability and get the finance process underway more seamlessly.


A conveyancer, or solicitor/lawyer with experience in property law, can walk you through your rights and obligations, and can help you identify the most suitable conditions to form a part of negotiations for your situation.

Know Your Conditions

Offers on property are either made conditionally or unconditionally. An unconditional agreement stipulates that the property is purchased without any change or amendment. A conditional agreement attaches conditions usually relevant to the buyer’s financial situation or completion of inspections, works or providing documentation.

Inspections Are Important

If you are purchasing a property, a pest and building inspection assists you to determine the ‘health’ of a property. Inspections can also help you determine whether you will need to conduct building maintenance in the immediate future.

Read The Contract Of Sale

Review the contract of sale before making an offer on a property. This will help you identify any conditions that might not suit your requirements or would need to be considered in your negotiations. Some conditions within the contract of sale are the deposit amount, due date, settlement date, and inclusions.

You Can Ask Questions

As a potential buyer, the answer to your questions can help guide your offer and help you with an understanding of the market conditions. Some that may assist are;

  • Price expectation
  • Other offers, if the agent is in a position to declare them
  • Days on market
  • Reason for sale
  • Changes in asking price

How To Negotiate

Once you have a price in mind, you can start negotiations. It is crucial to know how high you are able to go financially and how high you’re willing to go – these might not be the same. When calculating your limits, you need to take into account the fees you’ll need to pay, along with any costs of renovations. Conversely, submitting an offer that is too low can place you at a disadvantage with the vendor. The agent can help guide this process.

When negotiating, be prepared for some rejections. It can be a difficult and intimidating process, but there are things you can do to make for a smoother process.

  • Researching comparable sales
  • Constant communication with the selling agent can help you know when is the best time to commence your negotiations. The circumstances are different for every property. Waiting until just before the auction date to negotiate might mean the vendor and agent have had sufficient time to gauge property interest and market feedback, while making an offer earlier on might knock out other competitors.
  • Submitting your offer and any conditions in writing will demonstrate genuine intention.

Buying, Selling, or Renting in Port Macquarie? Choose Percival Property

At Percival Property, we’re passionate about delivering only the best for our valued clients. Our friendly, experienced real estate team members provide expertise across every facet of our business and can guide you through the process of making a sale, managing your property asset, or buying or renting your dream home.

We’re a local, independent business and know our local market intimately. You can be confident we’ll ensure only the highest levels of service and work towards creating the best possible outcome. Contact us today for your residential and rural and lifestyle requirements.