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How to navigate a Seller’s market

Do your research 

Consider asking the real estate agent if there have been any bids so far, and when they  were made. Ensure to ask why they were each rejected. This will quickly allow you to  determine the interest in the property and the price point and conditions where the seller  knocked them back. 

Firstly, ensure you have done all the necessary research and have a price in mind that you  would like to purchase the home for. Effectively you need to know your absolute upper limit  that you would pay to secure the property – usually this is close to what your market  research suggests the dwelling is worth. 

This upper limit isn’t necessarily where you start with your first offer. Most people will start  a little lower than their limit as it is not unusual for the seller to attempt to negotiate your  price upwards and it can sometimes be worth trying to get a bargain. 

Get your finances in order 

Knowing exactly how much you can afford means you can make an offer with confidence. So go through the pre-approval process with your bank or a broker, so you are armed and  ready to lock down that dream home. 

You should also make sure you can access the funds for your deposit, which will be  payable if your offer is accepted. 

With your deposit ready to hand over and your pre-approval sorted, you’ll be a step ahead  of other buyers and with any luck, you’ll be signing a contract in record speed! 

It is best to have your finance pre-approved so the seller knows you are serious and able  to act immediately, however you can make your offer subject to finance, which will give you  a limited time in which to receive confirmation from your lender that finance will be made  available to you.  

Prepare your deposit  

Just as relevant to the above, the vendor also becomes liable to real estate agents for  commission when the agreement goes unconditional, irrespective of whether the  transaction proceeds to settlement and the vendor receives the proceeds of sale. Deposits are usually 10 per cent of the purchase price, which is generally sufficient to  cover the agent’s commission entitlement. If the vendor has to pursue the purchaser for  enforcement of the agreement, the deposit provides a fighting fund toward the cost of  litigation. 

Prepare your settlement costs 

Inspect the property properly 

Home inspections quickly become overwhelming, but you need to be at your peak if you  want to get in a good offer. While you’re scoping the competition at the inspection, make  sure you’re getting (and retaining) information as efficiently as possible. You don’t have  much wriggle room for hesitation when making an early offer. Make sure you’re doing open  homes the right way

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