Submitting an offer on a property is one option potential property buyers have up their sleeve. Sometimes it can work for the buyer, sometimes against.
WBP Property Group's Greville Pabst has put forward a great set of tips for buyers who are thinking of submitting a prior offer on a property.
Attending the auction
It may be the best idea to attend the auction, they are transparent and you will get an accurate idea of how much interest is in it and whether you’re paying the right amount.
A prior offer might give too much power to the real estate agent. You might end up being the only buyer at your price level and your offer could be leveraged against other buyers and yourself as the agent tries to get the best price.
Know the market
If you make a prior offer it’s crucial you have a good understanding of the property market in the area. Do your research and make an offer that is right for the property in the market and that is fair to both parties.
Open ended offers
Make sure the prior offer isn’t open-ended and instead is a window period offer of around 48 hours. The window period allows the vendor enough time to think the offer over, but doesn’t give them too much time that they can use it as leverage on other potential buyers.
Get the timing right
The timing of the prior offer can be crucial. Get the offer in as early as possible, ideally several weeks before auction, it’s more likely to be considered and it can save the vendor the auction process stress which they will appreciate.
Think outside the price box
The sale price is always important but sometimes other factors can be of interest to vendors. For example, shorter or longer settlement periods, unconditional offers, or even renting the property back to the seller of you’re an investor.