As a buyer, you must always give yourself the upper hand, whether it’s over your competition or whether it’s over a seller, your best position is always to be one hundred percent ready to make an offer. This means that you must have all your due diligence completed on a property and be in a position to put your best foot forward at any time when buying property.
The very first thing to have in place is finance. A seller hate waiting for two weeks for you to get your finance in place and if there’s another offer on the table which gives them an unconditional sale sooner, they will most likely take it, even if it is for less money. See your broker or bank manager make sure that you work in your budgets and ensure that you put forward an offer that is not subject to finance.
In some cases, building and pest inspections need to be done. It’s hard to pay the money for them before you know you’ve bought a property and you must add them into the conditions. That’s fine, though to give yourself the best possible chance to be accepted and have a builder inspector ready to go within the same time you have for cooling off. If you can have the building and pest inspection sorted before or at the same time as your three-business day cooling off period, it’s nearly the same as making an offer unconditional while you work in the same timelines.
At the end of the day, conditions are just as important as price and sellers love unconditional offers. If you’re competing against other buyers, then you must put the most enticing offer forward which would be the best price, no conditions and short settlement (unless an owner needs a longer settlement). If it’s just one on one with an owner, then being able to make an unconditional offer gives you bargaining power and allows you to low ball a stale property. This means if a property has sat on the market for an extended period and is fairly motivated to sell, then you can come in and offer a much lower price than the asking price. If it’s an unconditional offer, the owner will have no choice but to at least think about it. If anything, they usually come down a lot more than you go up.
It’s pretty simple in the end, be proactive about the matter, do you due diligence and be ready. Whether you’re buying at auction, private treaty or expressions of interest, you know that each time you can give it your best shot and most often than not, you put yourself in a leading position. If you don’t win, you always know that you went to your limits and you can walk away with your head high and ready for the next
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.