Newspaper article The Daily Mercury (Mackay, Australia)

When to Make an Offer

Newspaper article The Daily Mercury (Mackay, Australia)

When to Make an Offer

Article excerpt

EVERY property purchase is unique, but there are some golden rules about when to make an offer, according to one industry expert.

Director of Wakelin Property Advisory Richard Wakelin says knowing exactly when and how to make an offer can be the difference between snagging the deal of a lifetime and paying far too much.

"There's no one-size-fits-all, because every property is different. You need to approach it on a case-by-case basis, but there are some fundamentals," he says.

Wakelin says current market conditions and the sale methodology being used to sell the property influence the timing of any offer.

"You can buy at a private sale, before an auction, by bidding at auction or have a negotiation after a property has been passed in at auction and naturally, these situations require different approaches," he says.

Despite the growing prevalence of auctions, especially in metropolitan areas, private sale remains the most popular sale method across Australia, so most buyers will engage in a private process, Wakelin says.

"The first thing with a private sale is to ensure there is an asking price attached to the property. It's the golden rule; never offer unless there is a price from the vendor," Wakelin says.

Next, potential buyers should ensure there is an "authority to sell" in place with the agent, as properties can be listed with numerous agencies.

"To formulate an offer, use a direct comparison method, where you compare like to like, the same kind of property on the same land size, with the same style and condition of accommodation to the one you're looking at," Wakelin says.

Establish the "rules of the playing field" before making an offer too, Wakelin says.

"How is the sale going to be handled? Will the property go to the highest and best offer? …

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