Property markets can ebb and flow and there are plenty of moving parts.
Competition, price, conditions - what do these all mean and how can you be successful?
We break down some of our advice and practical tips for securing your dream home.
Assess the competition
The first step in making a property offer is to understand your competition.
If there are multiple interested parties, agents may call for a multi-offer, requiring you to put forward your best offer, and in other situations the method of sale might be a deadline or a tender so chat to us if you're not sure.
To gain an advantage, try to learn who else is interested and what they're offering, if possible. Knowing the conditions set by other potential buyers can help you tailor your offer effectively.
Keep conditions concise and relevant
When putting your offer together, it's a good idea to keep your conditions as short and relevant as possible.
If you've already secured pre-approval from the bank, you may only need a brief finance clause of up to five working days to confirm the property's purchase.
However, if you're using KiwiSaver for your deposit, you might require a longer finance clause, perhaps 10 to 15 days, depending on your specific situation.
Additionally, if you have a lower deposit, consider the time needed for a registered valuation, which can take up to 10 working days.
Talk to us about the right fit for you - we'll usually recommend you have pre-approval sorted first.
Negotiate when possible
If there isn't a lot of competition for the property you desire, you may have the opportunity to negotiate directly with the seller.
Depending on the market, start slightly below the asking price and gradually working toward an agreement.
Most sellers are open to discussions, as long as your offer isn't too far from their expectations, it's only in very occasional situations that you'll be able to secure a property for considerably lower than the asking price.
Stay away from round numbers
A clever tactic when making offers is to avoid round numbers.
For instance, if you're considering an offer around $550,000, opt for a slightly random figure like $548,000 or $550,200.
Using these unconventional numbers can make your offer stand out and potentially increase your chances of success in a competitive bidding situation.
Be flexible with settlement date
Consider the seller's needs when proposing a settlement date. If the property is vacant or the seller has already moved, they might prefer a short settlement, typically two to three weeks.
However, if they haven't secured their next residence, they might require a more extended settlement period, up to two or three months.
It's also crucial to accommodate the seller's notice periods, especially if they have tenants, which can range from 60 to 90 days.
We can help
Making offers on properties can be a daunting process, especially for first-time buyers.
Remember to get your finances in order (we can help with this), stay informed, negotiate strategically, and be flexible to accommodate the seller's needs.
We're excited to work with you to get your offer across the line, so reach out to one of our advisers and chat more about your situation!