How to Make an Offer on a House

It is said that the seller sets the price and the buyer sets the value. 

In this article, we will scope the factors that will help you make an offer on a house at the right price. 

The following topics will be covered:

• Questions to ask when making an offer
• Agreement details
• Some important tips to check before you sign on the bottom-line
• A counteroffer

Questions to ask when making an offer

Here are some questions to ask when making an offer:

• How long has the property been on the market?
• Has the seller rejected other low offers? Your agent can advise you on any previous offer history.
• Are you competing against other bidders?
• How urgently does the seller need to sell?
  • Are they relocating?
  • Have they made an offer subject to the sale of their property?
• Does the Agent think your offer is realistic?
• Ensure you read and understand each clause in the “Offer to Purchase” and the implications of each.   Ask for a detailed explanation for any clause that you do not understand fully.

With the full knowledge that your “Offer to Purchase” will become a “Binding Agreement of Sale” once signed and accepted by the Seller, you must make sure that you are able to fulfill  your obligations to put your offer into effect.

Agreement details

An “Offer to Purchase” is an agreement in writing detailing the terms and conditions of purchase and acquisition of immovable property. 

As it will become a “Binding Agreement of Sale” once signed and accepted by the Seller, you must be sure that you are completely happy with the home you want to put an offer on.

This agreement will detail:

• Purchase price.
• Date of occupation.
• Occupational rent 
• Deposit payable.
• The Agent’s commission.
• Home loan required and date by which you must provide a bank guarantee.
• Fixtures and fittings which have to stay which could include:
  • Garden shed
  • Pool equipment
  • Curtains
  • etc.
• Other suspensive conditions:
  • If your purchase is subject to the sale of your property on or before a certain date.
  • It is important to remember that the transaction cannot proceed until all suspensive conditions are met.

Some Important Tips to Check Before you Sign the Bottom-line

Before signing  any “Offer to Purchase” on a home, you need to be sure that your offer is within your budget and that you are able to meet all the related financial requirements. Be sure to enlist the assistance of your Leadhome agent on determining your affordability before signing. You don’t want to discover at a later stage, when it’s too late, that you have over-extended yourself.

Also, before putting your signature on the bottom line, be sure to:

• Make changes in writing on the document.
• Cross out blank spaces.
• Sign or initial all changes and additions in writing.
• Initial each page at the bottom.
• Check the offer correctly records the description of the property.
• Double-check the purchase price.

A Counter Offer

Having done your research on selling prices in the area, your due diligence in checking there are no structural or other problems with the property and having determined what you can afford, it is time to put pen to paper. Don’t be afraid to offer less than what is asked as a seller can “counter-offer” if they are not willing to accept less than their asking price.

A seller is entitled to respond to your offer, with a “counter-offer”. They may change:

• The purchase price.
• The value of the deposit.
• The deadlines to secure a home loan and/or bank guarantee.
• The deadline for you to sell your existing property.
• And others…

A Seller’s “counter offer” is a tricky situation and is best handled by a professional.  Involve your Leadhome real estate agent who has the knowledge and experience  to handle any counter-offer situation.

However, once the seller has responded and signed your “Offer to Purchase”, you should always:

• Check all seller changes (dates, conditions and values) in writing on the document and initial these changes if you are in agreement.
• Check the seller has signed or initialled all changes and additions in writing.
• Check the seller has initialled each page at the bottom.
• Check the offer correctly records the description of the property.
• Double-check the purchase price, especially if the seller has changed this in a “counter-offer”.

Summary

For expert advice on how to make an offer and more get in touch with us. There’s a better way to sell your property. It’s called Leadhome. We challenge the status quo by providing a new way of operating using the best technology and the best people to make selling your home easier, faster and better. We go above and beyond the norm to give our clients the lowest rates, user–friendly services and an overall exceptional experience.  We are always only one call away.