Property For Sale Australia - How to Make an Offer

Last Updated on Sun, 13 Feb 2022 | Living in Australia

Searching a property for sale Australia wide? Wondering how to make the offer? Each state and territory may have its specifics but there are some steps that are more general and apply almost everywhere

So you have found your dream home and you want to make an offer.

You think that the real estate prices might go up and you rush.

Don't.

Price is important but there are other things that are even more important.

Get everything right with your future home so that you don't have any buyer's remorse.

Before rushing, here's what to do:

  • Understand this is a process and there are some steps you have to go through before buying a home;
  • Talk to your bank and if possible obtain a loan pre-approval;
  • Find a lawyer to help with the legal aspect. It can be a conveyancer or a solicitor.
  • Conveyancers have all the right knowledge to deal with most purchase contracts. But if you have specific circumstances and need in depth legal advice, talk to a solicitor.
  • It also depends in what state you are buying your property. For example in Queensland solicitors are the ones that deal with real estate transactions rather than conveyancers.
  • Make the offer to the real estate agents. They must communicate it to the vendor, who can agree or reject the offer. In most cases, you actually do not get to talk to the vendor directly, just to the agent.
  • To make sure that you are interested in the property, the agent usually asks you to pay a small deposit, around 0.25% of the price.
  • When the vendor accepts your offer, both parties sign the contracts and exchange them. This means the property is off the market and you have to buy it.
  • At this stage you also pay a larger deposit, usually 10% of the value (less the 0.25% you already paid). The agent does not hand the cheque to the vendor but places it in a special account.
home for sale in australia

Property for Sale Australia, the Cooling Off Period

You have a 5 days cooling off period to make sure that you:

You can try to negotiate a longer time to take your decision. Ask the agent to talk to the vendor. They may agree. Or not.

During the cooling off period, if you change your mind for any reason, including the fact that the inspections indicated that the house was a dud, you lose your initial 0.25% deposit.

Property for Sale Australia, the Settlement

Once you contact your legal adviser, you can leave the process to them. Your adviser will explain to you everything you must know about the contract and the settlement date, which is the date when you set foot in your new home.

Usually the settlement is after 6 weeks, unless you negotiate a different date.

Your presence is not required when the property settles. Everything happens between the legal representatives of the buyers and sellers and the bank.

Wait for the phone call from your conveyancer to tell you that all the signatures have been placed on the right documents. Then collect your new keys from the real estate agent.

And...there's one more thing to do: invite your friends for your house warming and let the champagne flow.

Continue reading here: Relocate to Australia - Tips to Help Organise Your Move

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