As more and more Aussies looking to become homeowners, it is essential to prepare yourself for the home search, home loan process and what you will do next if you do not get the home of your dreams.
With so much to contemplate, let’s take a look at four steps to ensure sellers perceive your sincere property purchase intention when it is time to make an offer.
Offer Earnest Money
Let the sellers know you are serious about buying their home. The purpose of good faith deposit or earnest money is to protect sellers from a buyer who makes several offers on homes. It is usually between 1 and 3 per cent of the purchase price. From the buyer’s perspective, it makes the seller perceive you are serious about buying. Hence, you should not back out of the agreement for no good reason. In case you do, you will lose your earnest money.
However, when the seller turned down your offer, you will receive your earnest money back. And, if your offer is accepted, that deposit goes towards the purchase price of the property.
Ensure you clearly state all these terms & conditions in the purchase agreement.
Get Home Loan Pre-approval
Getting the home loan pre-approval is the most powerful thing to show the property seller you are a serious buyer. A pre-approval estimates your borrowing capacity from the lender and helps you narrow your home search down to a realistic price range and explore suitable loan options.
Limit Contingencies
Opportunities or contingencies to address unexpected problems can add time to the property negotiation process. They may benefit some buyers but can be an annoyance to sellers ready to move on quickly. However, according to first home buyer specialists, if you can be flexible with things like the move-in date and eliminating restrictions related to the sale of a current house can make an offer stand out to a seller.
Note: By all means, include the contingency if it serves in your best interest. However, try to hold ONLY to essential contingencies.
Get Ready With Escalation Clause
Knowing the market value and the asking price are not enough to make your offer stand out. Your first home buyer specialist in Adelaide can guide you through negotiations and suggest preparing an escalation clause, believing you found your dream home.
An escalation clause is a method to escalate your bid automatically by a specific dollar. Again, your agent can work with you on what is suitable.
Before preparing the escalation clause, ensure you consult thoroughly with the first home buyer specialist about your financial situation.
Make A Connection
When a seller is overwhelmed with financially comparable offers, sometimes the selection comes down to emotion. Let the seller know why you love their house. Is it access to top-rated schools or neighbourhood park? Maybe the size and design of the property are just to your preference.
If you have made a powerful offer financially, this level of personalization makes seller remember your name when they review potential offers.
Let Us Help You Make A House Offer More Attractive
Having a knowledgeable first home buyer professional and reputable home loan lender on your side helps you achieve a great Australian dream.