WA offer, any tips please?

Hi guys,I just got my pre-approval from the bank for $400,000. Found a place I really like, but, the vendor asking for more than my $400,000. I was wondering if you can share any tips on how to present my initial offer to the REA. Thanks

 

Sign contract for 350k and tell em their dreaming

 

Before you get to the offer stage have you factored in all your buying costs such as stamp duty, solicitor costs, B&P, mortgage registration fees etc? As a rough guide add about 5% on top of the purchase price so to buy a $400k house you need approx. $420K. Sorry if stating the obvious but I’ve seen a few of your other posts and wasn’t sure if you were aware of these costs.

 

Not enough detail.
Pre approval is good
But what is your deposit
How much more than $400k is the property ?
Will it be a PPOR or IP
Details, it's always in the details.

How much are you allowing for legals, stamp duty, moving costs, other....

 

Yes I got that mate, thanks

 

Deposit $30k
loan approval $370k
Fees etc $10k
the property is $450k
it will be PPOR


This will be my initial offer, planning to do it via email. what do you think?

 

No worries another thing to consider is your loan structure. I think I saw in another post this property may become an IP at some point. You may want to think about a loan with an offset rather than paying down the loan. This gives more flexibility when you make your next move. E.g pull all the cash out of the offset and maximise tax deductible debt. Best to check with your account first tho to make sure you cover the best option for your personal situation.

 

I would recommend only offering with a complete O&A form, preferably completed by yourself or with your conveyancer.

 

Don't do it without a good broker involved - You're very highly leveraged at $450k and only a few banks will go there.

Make sure you use a finance clause.

 

Offer them your $395k and tell them this is all you are pre approved for and find out whether they want a long or short settlement and then let them choose this settlement date so that they are getting something that suits them too.

 

Good point, will consider doing that, thanks

 

Good idea, any other things to include in my offer to be more appealing?

 

Get your banker/broker to speak to the agent to confirm strength of the finance.
Some reason REA really like this.

 

I have never presented an offer via email. I have only ever presented an offer on a printed offer and acceptance form in person.

 

Yes definitely my preference, although I've emailed through a scanned copy of my completed O&A in a few situations.

 

Thanks for the tip mate

 

Suggest you include a sunset clause which dictates when the offer expires.

 

How did you go @michael_perth ?

 

Nothing yet, still waiting for the right one to show up. Is it me or properties are sold quicker these days?