How to Make the Best Offer
Our guidance to help you prepare your strongest offer
When submitting an offer for a property, it’s important to understand that the strength of your offer isn’t just about the price - it’s a combination of price, terms, and conditions. A strong offer balances these factors to meet both your needs and the vendor’s expectations.
Understanding the Price Range
You may notice that properties are advertised with a price range (e.g., $990,000 - $1,050,000). This range provides a guide to the vendor’s expectations, but it doesn’t mean the vendor will always accept an offer at the lower end. Here’s why:
The higher end of the range reflects the vendor’s ideal outcome.
The lower end represents a starting point, where offers are considered based on terms, conditions, and market interest.
A vendor might consider a lower offer if the property has been on the market for a while, or if your offer includes particularly strong terms (e.g., flexible settlement, minimal conditions, or a high deposit).
Some buyers may wonder why a vendor advertises a range if they don’t intend to accept the lowest figure. The reason is that:
A price range attracts a wider pool of buyers, encouraging competition and helping vendors gauge market interest.
Vendors are open to offers across the range, depending on how compelling the overall offer is.
In a competitive market, vendors are more likely to hold firm at the higher end. However, in a slower market, or with strong terms, offers at the lower end may be more acceptable.
Key Elements of a Strong Offer
1. Price:
Aim to be as competitive as possible within your budget. A higher price often indicates your level of interest and commitment.
2. Deposit:
Standard deposits are 10% of the offer price, but vendors may accept less in certain circumstances. You can also offer more of a deposit which will add strength to your offer - this can be useful to counterbalance any less appealing elements of your offer such as a long settlement.
If 10% isn’t available immediately, you can offer an initial deposit of 0.2% when contracts are signed, with the balance payable later.
The deposit is held securely in a trust account and is fully refundable (in most cases) if your conditions aren’t met.
3. Settlement Terms:
Consider what settlement timeframe works best for the vendor. If you can offer flexibility, it strengthens your position.
4. Conditions:
The fewer conditions you place on your offer, the more appealing it will be. For example:
Finance: Have your pre-approval ready to demonstrate financial preparedness.
Building and Pest Inspections: If you’re confident in the property, waiving these can reduce uncertainty for the vendor.
5. Other Considerations:
If the vendor is motivated to sell quickly or the property has been on the market for some time, you may have more room to negotiate. A well-presented and structured offer shows your seriousness as a buyer.
Next Steps…
If you’re keen to move forward, we’d be happy to help you craft a compelling offer that balances your needs and the vendor’s expectations. Let’s review the details, including your preferred price, deposit, settlement, and conditions, so we can present the strongest possible proposal.
Where to start
A good starting point is to complete our Offer Form by clicking the button below. It will take you through the process asking for the information we need to complete a Contract of Sale should your offer be successful. At this stage, the offer is not binding, but gives us an idea of where you sit in the landscape.
Feel free to call on 0428 744 498 if you have any questions or need further clarification.
