5 Tips to Bid on Your Dream Home

Tips to bid on Home

Okay, you’ve found the home that’s right for you. How do you make a good offer? What do you have to take into account? We are happy to offer you 5 useful tips to get you started.

1. Know the background

Make sure you are well prepared and that you know what comparable homes in the area cost. You can also check reports via online sites like onthehouse.com.au . This includes when the house was last sold and for what price. Also find out how long the house is for sale. If the house has been for sale for some time, find out why. This is information that you can use in the negotiations.

2. Determine your opening bid

You don’t want to bet too high right away, but you do want to be taken seriously by the selling party. Of course, the asking price of the house already provides direction, as does the appraisal value and the prices of comparable homes in the neighborhood. If the seller has to or wants to sell the house quickly, the price drops. If it is a popular house where there are several candidates, the price will rise. Based on all these factors, you determine an opening bid that is approximately 5% to 20% below your final bid.

3. Increase the offer and negotiate

If there is a counter offer that fits within your bandwidth, negotiating the price of the house can really start. On average, a house is bid three times before the sale is completed. If you are ready for your final offer, make this clear to the selling party. Also cover yourself by indicating in writing that your final offer is subject to financing and building inspection. With that you cover a lot of risks.

4. Arrange your financing

If you already have everything in place with a mortgage broker, the selling party is much more inclined to go along with your bid. After all, they are assured that you can get over the bridge with the money you offer. Maybe that’s why they drop more in the price. 

5. Stick to your budget

You have already decided in advance what the maximum amount you have to spend. So don’t get caught up in the madness on the housing market and stick to that budget. Offering more than you originally planned can get you into trouble. Maybe soon all your savings will be used up or your monthly costs will be too high for you. Of course you want to prevent this, so bid wisely.

Want to know more? Make an appointment  with one of our mortgage advisers! 

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