Write an Offer Like a Pro: A 7-Step Guide for First-Time Property Buyers in WA

Purchasing your first property is an exciting milestone, but it comes with challenges and important decisions. One of the most crucial moments in this journey is writing an offer that stands out and convinces the seller to choose you over other potential buyers. Here's a step-by-step guide on how to navigate this process and submit a compelling offer as a first-time buyer in Western Australia.

Step 1: Research the Market

Knowledge is power, especially when buying property. Before you even think about making an offer, arm yourself with market insights.

Review Recent Sales

Check recent sales of similar properties in the area to understand the going rates. For example, if you're looking at a 3-bedroom house in Riverton, see what similar properties have sold for over the last three months. Websites like REIWA and CoreLogic provide up-to-date sales data.

Consult with Real Estate Agents

Engage with local real estate agents who can provide market insights and trends. Knowing whether it's a buyer’s or seller’s market can influence your offer.

Utilise Online Platforms

Use tools like realestate.com.au or Domain to gauge current property values and listing prices in your preferred suburbs.

Step 2: Get Pre-Approved for a Mortgage

Sellers prefer buyers who have already secured financing, as it shows you're serious and financially prepared.

Shop Around for the Best Rates

Contact multiple lenders to compare loan options and secure the best deal. A mortgage broker can help simplify this process.

Obtain a Pre-Approval Letter

Having a pre-approval letter from your lender strengthens your offer and can sometimes give you an edge in a competitive market. It provides assurance to the seller that financing won’t be an issue.

Step 3: Understand the Offer Components

Writing an offer isn’t just about naming a price. It includes several key elements that need to be thoughtfully considered.

Purchase Price

Determine a competitive price based on your research. For instance, if similar homes have sold for $500,000, consider if offering slightly above or below this figure will help secure the property.

Deposit

In WA, the standard deposit ranges from 5% to 10% of the purchase price. Ensure these funds are readily available.

Settlement Date

Choose a settlement date that aligns with both your and the seller’s needs. Standard settlement periods are between 30 and 60 days, but this can be negotiated based on circumstances.

Conditions to Include in Your Offer

• Finance Approval: A condition that ensures you can secure your loan.

• Building and Pest Inspection: Especially important for older properties, this ensures there are no hidden surprises like structural damage or pest infestations.

• Special Conditions: Tailor this section to your needs, such as including a clause for repairs or certain fixtures being left in place. 

Step 4: Draft Your Offer

Now that you understand the components, it's time to put them together in a cohesive offer.

Be Clear and Concise

Ensure your offer is easy to understand and doesn’t leave room for ambiguity. Your real estate agent can help you draft a professional and well-structured offer.

Justify Your Offer

Be prepared to explain your rationale for the purchase price, especially if you’re offering below the asking price. Back it up with data from your research.

Step 5: Submit Your Offer

Once your offer is drafted, review it carefully to ensure all necessary details are included.

Review Before Submission

Make sure you are completely satisfied with the terms of the offer before signing, as once the offer is accepted and the seller signs it, the document becomes legally binding.

Make Sure the Details Are Legally Binding

Once you’re satisfied with the details, submit the offer to the seller's real estate agent.

Step 6: Negotiate and Finalise

Negotiations are often a part of the home-buying process, so be ready for a counteroffer.

Know Your Limits

It’s easy to get caught up in the excitement, but make sure you stick to your budget.

Stay Respectful and Flexible

Being courteous and open to negotiation can go a long way in reaching an agreement that works for both parties.

Step 7. Seek Legal Advice

Before signing anything, consult with a solicitor or conveyancer to review the offer and ensure it’s in your best interest. They can point out any potential issues and provide guidance on next steps.

Conclusion

Writing a compelling offer for your first home can feel daunting, but with proper research, preparation, and professional advice, you can navigate the process confidently.

The Importance of Preparing and Professional Guidance

Be realistic about your budget, informed about the market, and flexible when it comes to negotiations.

Consider Engaging a Buyer’s Agent

If you feel overwhelmed by the process or want expert guidance on your side, consider engaging a buyer's agent. A buyer's agent can act on your behalf, negotiate the best possible deal, and ensure your property purchase aligns with your goals.

Happy house hunting, and may your property journey be a smooth and successful one!