Essential Tips for Making Property Offers

00:00 Introduction

Tips for making an offer on a property, whether for investment or personal use, are shared. The focus is on understanding price, negotiation strategies, and standard terms to gain an advantage.

01:00 Understanding Price

• Price and value differ; they depend on individual perspectives.
• It's crucial to analyze both quantitative data (like market days and demographics) and qualitative data (like location and livability) to determine property value.
• Comparable Market Analysis (CMA) is essential to establish a price range by examining recent sales of similar properties.

03:30 Investor Mindset

• Investors should prioritize properties with growth potential, balancing cash flow later.
• Set a “walk away” price to avoid overbidding. This applies to both private treaty offers and auction scenarios.

05:30 Standard Terms for Offers

• Typical terms include 7 days for building and pest inspection, 14 days for finance, and a 30-day settlement with a 5% deposit.
• A higher deposit can show seriousness and help secure a deal.

07:30 Negotiation Strategies

• It’s advisable to conduct a building and pest inspection even if waiving the clause.
• Shorter finance terms increase buyer credibility.
• Understanding seller motivations can improve negotiation outcomes regarding settlement times.

09:00 Final Negotiations

• Discounts or reimbursements can be negotiated based on findings from the building and pest inspection.
• It's crucial to negotiate before the contract becomes unconditional.