In an active property market with an unbelievably low-interest rate and a favourable bank lending climate driving high demand for property, you would typically find many buyers .
To purchase a property, start with a good offer. This, he says, is known as an Offer to Purchase which is a legal document outlining the price you are offering, how you intend paying and other key terms including any conditions to the offer such as securing mortgage finance, needing to first sell a property, or sometimes both.
Further that to make a great offer to purchase, you need to do your homework, investigate, ask questions, then put your best offer forward. To avoid disappointment, start with doing your due diligence upfront so that you can put your offer in with confidence. Check “for sale” and “sold” prices of similar properties for comparison.
If you need finance, ensure you are prequalified as this will carry a lot of weight. Sellers do not want time wasters or bargain hunters. Ask questions and get a sense from the agent about how the property is priced and if there is room to negotiate, then says Van der Linde, put forward your best offer. The closer to the asking price and more favourable the terms, the better the likelihood of it being accepted.
Sweeten the deal with a deposit
If you are a cash buyer, it will definitely count in your favour. If not, then Van der Linde recommends a substantial deposit which, together with your pre-approval, will make your offer more attractive. Remember, if you are reliant on mortgage finance, the “72-hour clause” which is a feature of Offers to Purchase will allow the seller to continue marketing the property for this period. If he receives a better offer and you are unable to match it, you could lose out. It is therefore best to ensure your offer is as solid as possible.