To sweeten the deal and construct a more compelling offer, it may be tempting for buyers to add conditions to their offer or forego standard buyer conditions in order to put a more competitive offer forward.
Yet, conditions can both help and harm.
Other than the actual purchase price and deposit payable under the contract of sale, there are numerous other conditions for both buyers and sellers to consider in a real estate transaction.
From a buyer’s perspective, conditions usually come in the form of property protections.
Realmark Licensee John Percudani said in a competitive market, it could be advantageous to include conditions accommodating a seller’s agenda or timetable.
“Variable settlement timing and rent-back options can be attractive when sellers need to become buyers for their next home,” he said.
“The best thing a buyer can do is discuss the sellers’ needs with the agent.”
Mr Percudani said sometimes it was best to opt for a simpler strategy.
“A clean no-finance, non-conditional contract and a solid deposit can convey confidence and certainty to the seller,” he said.
As a seller, Mr Percudani said a straightforward offer provided more security.
“For example, you may be wanting to make a strong offer for your own next purchase or secure finance for a transaction,” he said.
There is a delicate balance to be struck between a buyer protecting themselves while still appeasing the seller when making an offer.
Buyers who have to make an offer that is subject to the sale of another property should consider selling prior to buying in the current market, unless they are comfortable with paying an absolute premium for this privilege.
Buyers should try to step into the shoes of the seller. Consider whether each special condition is truly essential, or if it’s better to simplify the offer and adjust your price accordingly.
While it’s important for buyers to safeguard their interests, it's worth noting that some continue searching for months or even years.
In a competitive market, the key to success is making it as straightforward as possible for the seller to accept your offer.
For the full article, see the Saturday 31 August edition of The West Real Estate.