Making an offer on a Property

Property Negotiations- Make an Offer

Congratulations!You have found a property you like. You may, at this point, choose to take a copy of the contract to your solicitor. You can now make an offer on the property, either directly to the vendor or through an agent. If your solicitor has taken the contract you may choose to submit a conditional offer, subject to contract – which simply means that you are waiting for your solicitor to read through the contract and make sure there is nothing in it that is of concern.

Before making an offer, do your homework carefully and make sure the price is fair. Be clear about what is included in the price – generally anything fixed is included and movable items such as refrigerators or washing machines are not.

If you really want this property and there are other potential buyers interested, offering less than the asking price might result in disappointment, as the seller will likely accept the best offer. However, negotiation can result in considerable savings.

fun couple

Discuss your intended offer with the agent, but always keep in mind that agents act for the seller, not for you. The agent’s job is to get the best price for the vendor.

You might be asked for a small initial deposit as an indication of your genuine intent. This does not necessarily secure the property for you. The property might remain on the market and the seller may consider other offers. The word ‘gazumping’ is used to describe the practice of buyers offering a higher price or more favourable terms after the seller has accepted an offer.

It is disappointing for buyers, particularly if you have paid for building and pest inspections, but in N.S.W., there is nothing to stop the seller accepting the higher offer (Gazumping), although there is an unwritten code of conduct that dictates that an agent should keep you in the loop if your offer was first off the rank.

One of our clients was Gazumped by a last minute higher counter offer from another interested buyers. The clients were devastated when the selling agent worked behind the scenes to secure this other offer.

Once contracts are exchanged, any accidental damage to the property may result in financial loss to the buyer, so it is imperative that you arrange property insurance to start from the date of exchange. Insurers will usually issue a cover note in response to a telephone request, giving you up to twenty eight-days to confirm agreement to policy terms and pay the insurance premium.


Make sure your solicitor has discussed the finer details of the contract with you and you have received satisfactory answers before you sign the contract of sale.

Well done Congratulations

Click to Find the Best North Shore Apartments for Sale

For Apartments in Brisbane Best Brisbane Apartments for Sale

Brand New release coming August 2010 Verde at St Ives in Sydney and Epping Park at Epping in Sydney

Pre-register your interest in these developments by ringing +612 9144 4470

Related Posts

We will keep You Updated...
Sign up to receive breaking news
as well as receive other site updates!
Recent Posts

Why should I buy property in Sydney Inner West ?

The greater Sydney area as a whole whilst generally having higher prices than other capital cities,...

Factors to Consider When Buying a Unit

Not all units have been created equal and you should therefore make sure to take care and do your...

Is Now a Good Time to Buy an Investment Property?

They say timing is everything, and in real estate this certainly can hold true, but it all depends...

Introduction and Advantages of buying a Unit

The desire to own your own home is so deeply ingrained in the Australian psyche that it is often referred...

Top 5 Ways to Stop Paying Rent

Top 5 Ways to Stop Paying Rent

Recent Comments
... Buy new property off the plan Share and Enjoy: ...
... Investors Buying Overseas Sydney Property Rentals Rising 5 Steps to Investing in Property Quality Apartments for Sale in Sydney
... Click to Find the Best North Shore Apartments for Sale ...
... Find Best North Shore Apartments for Sale ...
... Sydney Property Rentals to Rise ...
Tag Cloud