Purchasing a home can be an exhilarating but intricate process that can feel intimidating, particularly when it comes to making an offer. Whether you are making an offer through a private treaty sale or at an auction, there are essential steps you should follow to ensure that your offer is competitive and has the best chance of being accepted.
It is crucial to conduct thorough research, set a realistic budget, and work with professionals such as real estate agents, solicitors, and conveyancers. In this blog, we will provide guidance on making an offer under both a private treaty sale and an auction to help you navigate this exciting journey.
Private Treaty Sale:
A private treaty sale is the most common way of selling a property, in which the seller sets a price, and potential buyers make offers. The seller can negotiate with the buyer until a mutually acceptable price is reached, and then the sale proceeds.
When making an offer to buy a property under a private treaty sale, follow these crucial steps:
- Contact the agent:
Get in touch with the selling agent to express your interest in the property and request more information, such as a contract of sale and a section 32 statement (also known as a vendor’s statement).
- Determine your offer:
Decide on the amount you are willing to pay for the property and any conditions you want to include in the contract, such as a finance or building inspection clause.
- Submit your offer:
Submit your offer in writing to the selling agent, along with any supporting documents. It is vital to clearly outline your proposed purchase price and any conditions and to include your contact details so the agent can get in touch with you if necessary.
- Negotiate:
The seller may choose to accept, reject, or counter your offer. If your offer is rejected, you may want to consider increasing your offer or negotiating on other terms. If the seller counters your offer, you can choose to accept their counteroffer or make a new offer.
- Finalize the contract:
Once your offer is accepted, you will need to finalize the contract of sale with the help of a solicitor or conveyancer. This may involve arranging a property inspection and obtaining finance approval.
It is important to approach the process of making an offer under a private treaty sale carefully and work with a conveyancer.
Auction
When making an offer for a property at an auction, the process is different from a private treaty sale. To ensure a successful bid, it’s crucial to follow these steps:
Conduct thorough research
Prior to the auction, gather all the necessary information about the property. Attend open inspections, get a building and pest inspection report, and review the contract of sale to determine the property’s market value.
Determine your maximum bid: Set a limit for yourself and stick to it. Consider your budget, the property’s value, and any repairs or renovations that may be required. It’s important to note that once the hammer falls, the sale is final, and there’s no room for price negotiation.
Register to bid
Register with the auctioneer and obtain a bidder number. Identification and proof of funds, such as a bank cheque or deposit, may be required.
Attend the auction
Arrive early and take note of your competition. Stand in a prominent position so that the auctioneer can see you, and make sure you can hear the auctioneer clearly.
Make your bid
Confidently make your offer when the auctioneer asks for bids. You can bid in increments or make a strong opening bid. Bidding quickly and decisively can help you avoid getting caught up in a bidding war.
Be prepared to negotiate: If the property does not meet the reserve price, the highest bidder may have the opportunity to negotiate with the seller. Be willing to negotiate and remain flexible on your offer, but also be willing to walk away if the price exceeds your limit.
Buying a property at an auction can be a high-pressure and competitive environment, so it’s crucial to be prepared, stay calm, and stick to your budget.
Whether you’re buying at an auction or a private treaty sale, it’s always advisable to seek help from a conveyancer or solicitor. By doing your research, setting a budget and knowing your limits, and working closely with the selling agent, you can increase your chances of securing your dream home. Remember, buying a property is a significant investment, so take your time and make informed decisions throughout the process.
