Stand out in a competitive market with a strong offer
So, you’re ready to buy a house? Well, you’re not alone.
Housing in South-East Queensland is in high demand. Gone are the days of submitting an offer and negotiating one-on-one with a seller. These days, it’s common to see multiple buyers competing for the same property.
With that in mind, we’ve put together some practical tips to help strengthen your offer and give you the best chance of securing your property of choice. Here’s what we believe makes the strongest offer to purchase.
- Always submit your offer in writing
Under Queensland legislation, real estate agents are required to present all written offers to the property owner (vendor), unless the seller has given written instructions otherwise. “In writing” does not necessarily mean pen and paper. Most agents now use digital platforms and online forms to submit offers quickly and efficiently. - Know your budget
An offer backed by finance pre-approval will generally present more strongly than one without. Sellers are looking for certainty, and pre-approval shows that you are financially prepared and capable of progressing towards an unconditional contract.
Keep in mind that you may be competing with cash buyers, who present minimal risk to the seller. Having your finances in order helps position you as a serious and reliable buyer. - Consider your settlement terms
Before you start house hunting, be clear on your ideal settlement timeframe.
Do you need to sell your current property first? Are you tied to a lease end date?
Knowing these details in advance allows you to move quickly and submit a well-considered offer, that suits both you and the seller, when the right property comes along. - Have a conveyancing solicitor ready
You will need a conveyancing solicitor to review your contract before signing. Not all conveyancers specialise in the same areas. Some specialise in off-the-plan purchases, while others focus on strata or standard residential contracts.
Do your research, obtain quotes, and ensure your chosen solicitor has availability before you submit an offer. Including a nominated conveyancer can strengthen your position.
It is also wise to have a backup. If the seller has nominated the same conveyancer as you, that firm could be unable to act for both the buyer and the seller due to a conflict of interest, so you will need an alternative ready to go if they are unable to act for you. - Have a building and pest inspector ready to go.
Like conveyancers, there are plenty to choose from. Do your due diligence by obtaining quotes, reading reviews, and ensuring they have availability to assist you should your offer be accepted.
A thorough building and pest inspection can save you significant costs in the long run by identifying potential issues before you proceed with the purchase. - Do your research
Understanding the market value of a property is essential. Do not rely solely on the listing price. Review recent comparable sales in the area, for example via realestate.com.au.
Remember, if you are purchasing with finance, your lender will conduct a valuation. If the property does not meet the valuation, it may impact your loan approval, even if you have pre-approval in place.
Final tip: Be prepared to act quickly
In Queensland, once you sign a contract, there is a mandatory 5 business day cooling-off period for residential purchases, unless waived by the buyer/s.
The contract is legally binding once signed by all parties, and terminating during the cooling-off period may incur fees from your conveyancer.
The seller is also within their rights to deduct a penalty upto 0.25% of the purchase price from the deposit if the buyer elects to terminate the contract during the cooling off period.
We hope these tips have given you a clearer understanding of how to strengthen your offer and stand out in a competitive market. With the right preparation, you can approach your next purchase with confidence and put yourself in the best position to secure the property you want.
If you’re also considering selling your current property, or would like an updated appraisal to better understand its value, you can contact the MPM Property team here and we will be happy to assist.