What's Involved in Making an Offer in 2024?

A buyer asked a great question at a viewing last week ‘what’s involved in making an offer’?  Fast forward from the question... an hour later we’d done a written conditional offer…two hours after that an accepted contract... then 4 days later conditions were satisfied and the buyer had the house!

With over 400 properties sold, here are some tips from the coalface:

1. Good Offers answer the the Seller’s Core Questions well

Every seller, regardless of age or culture, asks the same three questions when there’s an offer... and ALWAYS in this order:  

• What is it (they mean what’s the price?)?

• How risky is it? (they mean what are the conditions and can they rely on it?), and thirdly 

• Can I do that date? (they mean how would it work with my plans…can I do it?)

To make a good offer that you want accepted you need to be answering these questions favourably.  Ask yourself this... if you were the seller would you want to accept it?

2. Speed Can Be Your Friend... Be Ready!

If you’re thinking about a property, and it’s a good property, chances are someone else is thinking about it as well.  Sellers with plans are keen to get to certainty and move forward, so moving quickly through the process can often help your chances of getting the property you want:

• Have a Bank Pre-approval in-hand, so you know what you can spend.  

• Then when you see ‘the one’ ask the bank for a Specific Approval for that property…this will allow you to make a cash or close to cash offer.

• For your pre-purchase checks ‘Assemble your Team’ as they say!  Organise who your lawyer will be and building inspector. Understand their turnaround times and have them on speed dial ready to go.  If you’re not familiar with the building aspects of properties, do you have a friend or someone in your family or network who is that can have a second look at the place or your reports?  Add them to the team! 

• Get a copy of the Sale & Purchase Agreement early and skim through it to feel familiar.  This will also help you get to sleep at night! 

3. Research Actual Market Sales

• Ask the agent for a List of Recent Sales in the area and look at ‘comparables’.  Plot spoiler - many are still listed on the net so you can do photo tours.  Shade up or down for differences to arrive at a reasonable price band or estimates.

• Keep to Recent Sales, no older than 3-6 months and be aware if the market has moved rapidly in either direction over that time to factor this in.

• Go and See Some Different Properties to get a feel of options out there and how price changes with changes in properties.  You’ll sometimes find that spending another say $50k to $60k on a purchase price can achieve extras that would otherwise cost you way more (close to $200k) to add on later, for example an extra bedroom or living and bathroom.

4. Don’t Sweat the Small Stuff

• Get the Big Things Right - some things you can’t change – e.g. location and which way the house is facing – but many other things can be changed so Don’t Sweat the Small Stuff.  

• If the place needs new carpet or you don’t like the wall colour, just factor that in if needed and offer.  It can be really hard to find something that ticks most boxes, so when you do, putting your ‘problem solving’ hat on for the less important things can really help. 

• Most important, don’t let the small stuff make you uncompetitive, keep your eye on the prize and secure the asset… you can sort those things later.  

5. Work out your Buying Criteria

Working out your needs (critical things) versus wants (desirable things) and getting to a list of minimum non-negotiables can really help you focus more strongly on the right properties and save loads of time.  Starting wide to have a look is good in the beginning to see what’s out there but don’t stay too long at that level or you’ll have no weekends.  Narrow it down and be ready to strike! 

NOW..... with this week’s 0.5% cut in the official cash rate and another cut likely in November, this Spring and Summer is a great time to put your plans into motion.  Start with a reliable appraisal and advice on how to get your property in shape for a great result.  Book in for a quick 15-min appointment by email, text or call.  No fuss, no sales pitch, just service

(leonie.snook@harcourts.co.nz or 027 518 0008).