Making an offer on a property that you really want to own may seem complicated especially without the right guidance. However, once you are able to catch hold of the concept and the procedures involved, you will feel more confident about negotiating the best price for your new home. You as anyone else would not want to pay for more than the market value. But, the real question is where should you start and how do you get the best deal?

The process of making an offer can differ from state-to-state as well as territories. It begins when you first meet an agent. The agent will likely ask you numerous questions to analyze your situation and then plan out your needs to see whether your budget meets the requirements.

Prior to entering the offer, you must know that this relationship with the agent might consist of numerous phone calls, second and third visits to the property, and possibly some inspections.

There are two types of offers that can take place when buying a property– unconditional and conditional. Conditional offers are more common. Let us see in brief what each one consists of.

• Unconditional offers

This is a straightforward kind of offer made to buy a property. However, we should be completely sure that it is the property that we actually want. We must also ensure that we have enough money to buy the property. You can consult a mortgage broker to know how much you can afford before making an offer. Once a vendor accepts the your offer, we become legally obliged to go through with the sale. Unconditional offers are mostly the criterion at auctions.

• Conditional offers

This too is a kind of binding contract, if and when all the conditions are satisfactorily met. You can only back out if one or more of the conditions are not met.

The following 6 steps can help you make a successful offer on a property. Let us have a look at them.

1. Review the contract

Ensure that the vendor or seller has a contract of sale prepared and available for inspection. The contract must usually include the following documents:

• A zoning certificate from the local council

• A copy of the title to the property as recorded in the Land Titles Office

• Copies of documents outlining other registered interests over the property.

After several inspections of the property and discussions with the real estate agent or vendor, you can ask for a copy of the contract and review it with your solicitor or conveyancer to ensure that it is acceptable.

2. Make an offer

If you have an offer in mind then put it in writing and hand it over to your real estate agent. Your offer should comprise of the amount that you are willing to pay, any conditions such as repairs that need to be made, the deposit amount, as well as a timeframe for moving in to the new property. You can receive help in preparation of a letter of offer for the property that you want to purchase.

3. Start negotiations

The process of making an offer and starting negotiations starts when the vendor accepts and responds to your expression of interest in their property.  As a buyer, at this stage, you would require to pay a holding deposit that would prove that your offer for the property is serious. This deposit is refundable in case the seller is interested in a better deal. It is a good idea to ask beforehand whether anyone else has made an offer on the property, to assist your negotiations.

4. Exchange of contracts

Once you have come into an agreement regarding the price with the vendor, you would then need to exchange contracts and pay the full deposit. This is usually about 10% of the purchase price of the home. You will be taken through the entire process by the home lender and solicitor.

During this period you would also require to prepare for the home insurance because you become the property owner from the date when contracts are exchanged. Your contents insurance begin from the time that you move into the property. If you’re buying a unit, you’ll need to arrange a Certificate of Currency from the insurer of the Body Corporate, to ensure that the property has been adequately covered.

5. Cooling-off period

Most states have a cooling-off period after contracts are exchanged, until and unless a residential property is bought at auction. The cooling-off period gives buyers the option of cancelling a contract, however, at the cost of losing the deposit.

It is important to check with an expert, whether a cooling-off period applies to your contact before you sign it. You should also check the property during this time to ensure that the condition of the building and inclusions are as per the contract.

6. Settlement

The period of settlement is usually determined by the vendor but can be negotiated if required. This period is for around four to six weeks. This is the time when you pay the balance of the property by using your home loan, including the Stamp Duty. After all this is done, you will then receive the keys and title deed to your new home.

If we follow these 6 step procedure then we can be ensured that we will make a successful offer on a property. Other than these 6 steps, here are a few tips that will further help you.

Tips for making an offer

• When making an offer on a property sold at auction, stay calm and take an experienced approach. Talk to an expert to ensure that you are prepared with what you need before the big day.

• If you are planning to buy off the plan, then you might need to take a few additional factors into considerations. Talk with an expert to understand the process well before going ahead and making an offer

• Try getting a conditional pre-approval so that your finances are in order. Ensure that you know exactly how much you have to spend.

• Know your borrowing power and work out a negotiation strategy to ensure that you stick to your budget

• Do a thorough research of the market and look at comparable property prices in the area to help you negotiate a good deal.

• Get your own building and pest inspections completed before you exchange contracts

• Remember to be patient with the entire procedure. Do not let anyone push you to make hurried decisions.

Over to you

As the last step, you need to contact your legal adviser who you can leave the entire process to. They will explain the entire process to you which would comprise of everything that you must know about the contract and the settlement date, which is the date when you would set foot into your new home.