How to make an offer on a property for sale
We know how confusing making an offer on a property can be, as every agency does it differently!
We have spent years refining our offer process, and believe that it is the fairest and least stressful way possible for both buyers and sellers.
Follow our guide to learn how to successfully make an offer on a new home.
Making an Expression of Interest
The first step in our offer process is filling in our “expression of interest” form. This gives us all of the information that we will need to formalise an offer onto a contract of sale. Please fill this form in as accurately as possible, as this is the information we will be using to create the contract of sale. The information we require is:
- Full names (including middle names) of all buyers who are to appear on the contract
- Current Address
- Dollar amount of your offer
- Deposit amount (industry standard is 10%). We also require an up front initial deposit of 0.02% of the offer price. This forms part of the deposit you will be required to pay on the property. Should your offer not be accepted, this deposit will be refunded to you.
- Settlement date (usually 30, 60 or 90 days)
- Any “special conditions” attached to your offer, such as subject to finance or subject to building & pest inspection
Once we have received the completed expression of interest, we will create a contract of sale and send it to you for signing electronically via DocuSign. You are welcome to send this across to your conveyancer for review before signing. Please note that the contracts are created manually by our team, so there may be a slight delay in getting them across to you.
Presenting your offer
Once the documents have been signed, we will present your offer to the vendors for their consideration. From here, there are two scenarios that may occur:
Scenario 1 – Multiple Offer Scenario
In “hot” markets, it is common for us to receive more than one offer on a property. In this situation, we will set a “closing date” and time for offers, and will present all offers to the vendors at the same time.
All interested buyers are given an equal opportunity to put their offer forward, and only offers formalised on a contract of sale will be considered by the vendors.
When presenting to the vendors, it is most likely that we will call all offers in front of the vendors to ensure transparency. No parties will be aware of the price or conditions of any other offers.
We like to give all parties one opportunity to increase their offer should there be more appealing offers, in this case we will ring the buyer with the least appealing offer first and move up to our final call being the most appealing offer.
Scenario 2 – You are the Only Interested Party
Once your offer has been formalised and initial deposit paid, we will make an appointment to meet with the vendors to consider your offer. We always endeavour to not drag the process out, and the appointment is usually within 48 hours of you making your offer. These appointments are almost always after business hours.
When presenting to the vendors, we will call you in front of them to discuss your offer in more depth.
When considering offers, the vendor has three options:
- Accept an offer
- Negotiate with interested parties
- Reject all offers