Making An Offer: What Is The Process?

Purchasing a property can be an exciting yet daunting experience, especially for first-time buyers. We can't speak for other agencies, but the following is best practise as conducted at Smith Partners to help make the process as straightforward and stress-free as possible.

Making an Offer

Once you find the right property, inform the agent of your interest by submitting a Letter of Offer or Offer Form. This document outlines the conditions of your offer and shows your intent to purchase. It should include:

- Offer Amount: The amount you are prepared to pay for the property.
- Deposit: A holding deposit, separate from any other deposit that may be required by your financial institution. A higher deposit often indicates a strong commitment.
- Settlement Period: The time frame you need to meet the offer's conditions before the property is transferred into your name.
- Conditions: Any specific requirements you need to fulfill to complete the purchase (e.g., finance approval, sale of your current home, building inspection). Fewer conditions can make your offer more attractive.

Best and Final Offer

If multiple offers are made, you will be given the opportunity to submit your best and final offer. This might involve increasing your offer, adjusting conditions, or confirming that your initial offer is your best. The Agent cannot disclose other offers, and once submitted, you won't have another chance to modify your offer if the Vendor selects another.

Negotiations

If your offer faces no competition, the Vendor has three options:

- Accept the Offer: Proceed to signing a Contract and receiving the Form 1 Vendor Statement.
- Decline the Offer.
- Counter-Offer: The Vendor may propose a different amount or conditions. You can respond with another counter-offer until both parties come to an agreement.

Signing the Contract and Cooling-Off Period

Upon acceptance, your offer will be formalised in a contract, which both parties must sign. You will also receive the Form 1 Vendor Statement. The cooling-off period begins at midnight on the day the contract and form 1 are signed. You have two full business days (48 hours) to review these documents, ask questions, run it past your conveyancer if you choose and arrange a building and/or pest inspection if needed. To exercise your cooling-off rights, notify your agent in writing within this period. Once it expires, your specified deposit is due on the next business day.