A Beginner’s Guide to Making an Offer on a Property

So you’ve found a property you love and are eager to take the next steps? Great! 

Before you can start planning the exciting next chapter in your new home, you’ll need to make an offer and have it accepted.

With a number of crucial steps involved in the offer-making process, we’ve put together a handy guide to making an offer and hopefully securing the property of your dreams!

1. Research the market

Before deciding to make an offer on a property, it’s important to thoroughly research the local property market to gain an understanding of property values in the area.

Look at recent sales data for similar properties in the neighbourhood to determine a fair market price for the property you're interested in.

By understanding market prices for the type of property you’re interested in, you can make a reasonable offer.  

2. Get conditional approval

Obtaining conditional or pre-approval for a home loan is an important step to make before making an offer.

Conditional approval will help you get a clear understanding of how much you can borrow from a lender, so you can determine your budget and make your offer more credible to sellers.

Having conditional approval before making an offer can also help to make the buying process faster and more streamlined.

3. Understand the property

While it can be tempting to make a quick offer immediately after seeing a property you love, it’s important to take the time to thoroughly inspect the property and get to know its features, condition, and any potential issues.

Consider factors such as the location and surrounding area, size and layout of the property, access to amenities and services, and potential for renovation and improvement.

This information will help you make an informed decision when it comes to determining a reasonable offer amount.

4. Seek expert advice

Navigating the home buying journey can be tricky - but you don’t have to do it alone! 

Obtaining professional advice from real estate agents, conveyancers or solicitors can provide you with valuable insights and guidance throughout the offer-making process.

They can help you understand local market conditions, draft your offer contract, and negotiate terms with the seller.

5. Decide on your offer price

Once you’ve conducted your market research, inspected the property, and consulted with professionals, it’s time to decide on the price you’re willing to pay for the property.

Your offer should take into account factors such as the property's market value, your budget, and any additional costs such as stamp duty and conveyancing fees.

Be sure that you consider both the upfront and hidden costs of buying a property, as well as ongoing expenses, to ensure you can comfortably afford this amount.

6. Consider conditions and contingencies

When making an offer, you may include conditions or contingencies to protect your interests. 

These conditions can include things like the building and pest inspections being satisfactory, securing finance approval, or selling your current property before proceeding with the purchase.

Discuss the types of conditions you may want to include with your conveyancer or solicitor before including them in your offer.

7. Submit your offer

With your offer amount determined and any applicable conditions included, it’s now time to submit your offer to the seller or their agent.

Make sure your offer is clear and concise, covering all relevant details such as the proposed purchase price, conditions and contingencies, and the proposed settlement date.

You may be able to submit your offer verbally or in writing, depending on the preference of the seller or real estate agent.

‍8. Negotiate terms

After you’ve submitted your offer, the seller may accept, reject or counter the proposed offer with a different price or terms.

These negotiations will continue until you’re able to reach an agreement that’s mutually acceptable for both parties.

Be prepared to negotiate with the seller and take your time to consider any counteroffers carefully before making a decision.

9. Finalise the contract

Once the negotiations are complete and your offer has been accepted, your conveyancer or solicitor will help finalise the contract of sale.

This includes reviewing and signing the contract, paying the required deposit amount, and arranging for any inspections or approvals.

Once all conditions have been met, the contract becomes legally binding and the property is considered ‘under offer’.

10. Prepare for Settlement Day

With the contract finalised, you can start preparing for settlement day – the date on which you’ll officially become the owner of the property.

Speak to your conveyancer or solicitor about what documents or information you need to prepare in the lead-up to settlement, and make sure you understand the timeline and process.

Being well-prepared will help make the settlement process smooth and stress-free, so you can look forward to getting the keys and starting your new chapter!

When making an offer for a property, it’s important to understand all the steps involved, as well as what you need to do to make an informed decision. 

By doing your research, consulting with professionals, and taking your time to decide on a reasonable offer amount and conditions, you’ll be in a good position to secure the property you’re after at the right price.

Looking to learn more about the home-buying process? Check out our series of buy a home articles. 

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.

Unloan is a division of Commonwealth Bank of Australia

‍Applications are subject to credit approval; satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000.

‍Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

‍There are no fees from Unloan. However, there are some mandatory Government costs depending on your state when switching your home loan. For convenience, Unloan adds this amount to the loan balance on settlement.

* Other third-party fees may apply. Government charges may apply. Your other lender may charge an exit fee when refinancing.