Looking To Buy? It's Not Always About the Money
Probably not something you'd hear from your local Real Estate agent - however as Mortgage Brokers we often get to see a different side to things.
How often have you gone to an open home really liked the place, and then automatically written it off when you hear Negotiations Over $.........
You may be surprised to learn it’s not always the top dollar that actually secures a property. And if you are in the ballpark of the negotiable price you may still be in with a chance.
There are so many different reasons why a property is put on the market, from vendors needing to liquidate an asset, to changes in family circumstances, all of which play a role in how much a seller is willing to accept.
Some may need money quickly to avoid the cost of bridging finance, others may have a deadline to move cities, or want funds for a new project, or simple just want a stress-free sale.
As potential buyers the best thing you can do is to make sure from the get go, that you’ve got all your ‘ducks in a row’. A pre-approval is the best place to start with this. To the vendor it indicates you’re serious about buying & that the bank is likely to lend you the money (as long as they are happy with the property in question of course) which decreases the likelihood of the offer falling over.
The second thing we recommend is aiming to keep the conditions of your offer to as few as possible – now that doesn’t mean being silly about things & we always recommend you seek quality legal advice before signing on the dotted line. But if a seller is presented with two offers, one that’s more than yours with 10 conditions to be met & yours which is a lower offer but only 3 conditions to be met, which do you think is more attractive to a vendor who wants an easy sale or is looking towards their next project?
Another thing that can make your lower offer seem more appealing is having a level of flexibility – perhaps you could accommodate a quick settlement or an extended settlement date, maybe the current owner is building & could benefit from settling but then renting the place from you for a month? Or maybe you note that something needs repairing but rather than making it a condition of the sale you mention it & are willing to see to it yourself once the house settles.
You’d be surprised how the little things can make your offer more appealing to a vendor depending on their reason for selling.
So, before you immediately write a property off as outside your price range, take a moment to think about how you could make your offer most attractive to the seller.