What to expect during the offer process

Your ultimate guide to buying real estate in Tasmania

February 2023 | By Fall Real Estate | 12 Minute Read | Tags: Guide, Sell, Buy

Key points:

  • Learning how property can be sold in Tasmania will assist the buyer in understanding our market and what to expect during the offer process. There are four main marketing strategies: a private treaty, an auction, an expressions of interest, and a sale by tender.
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  • Before looking for your next home or putting an offer on the table, you can first prepare to buy. Finding out how much you can loan, the hidden costs involved, and the price of a property you can afford are practical steps to take in the process towards making an offer.
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  • There are several ways you can search for and inspect a property. You can sign up for Fall’s Property Alerts, follow us on social media, or contact us directly to let us know you are looking for a particular property or want to inspect a property.
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  • There are many professionals you can contact who can help you in the process of making an offer on a property, including a lender, a mortgage broker, a conveyancer or lawyer, and a property agent.
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  • Making an offer can be as simple as making a phone call, writing an email or meeting with one of our agents in person. If you are unsure how to present your offer to the buyer, we are here to help! You can contact our office or the property agent selling the property you are interested in.

What to expect during the offer process

Have you just come home from the open home where you have found your dream home? The one you have been searching for, and you have finally found it!

 

Finding your dream home is exciting news! But you must be wondering - what to expect during the offer process. And where to even begin?

 

If you have applied for your pre-approval home loan and have been accepted, know your maximum budget for your next (or even first) property purchase, and are ready to make an offer, you must be asking, what should I do first?

 

The next stage, starting the offer process, can be daunting for many people, and we frequently get asked questions regarding the process from the first offer to owning the property - so, what actually is involved?

 

Our article, what to expect during the offer process, guides you through how to buy real estate in Southern Tasmania - with many similarities to other states and territories. As you read this article, we hope you will gain confidence and assurance of your next step to put your first offer on your dream home successfully.

Ways to purchase property in Southern Tasmania

Your guide to what to expect during the offer process

Ways to purchase property in Southern Tasmania - Fall Real Estate

Before contacting a real estate agency to put forward your first offer, learning how an owner can sell property in Tasmania is a good idea. There are four main marketing strategies sellers can use to sell their property: a private treaty, an auction, an expressions of interest campaign, and a sale by tender.

 

We have unpacked each strategy to understand how you can put forward your offer depending on how the seller wants to sell their property.

Private treaty

A private treaty is the most common selling campaign owners will use to sell their property in Tasmania. These properties will be advertised with a particular asking price or a price guide will be given, such as “Offers over $600 000”.

 

Depending on the market and buyer competition, the owner may receive offers well over the starting price.

Auction

While auctions are less common in Tasmania, they are increasingly utilised in today’s market and chosen carefully for particular featured properties with high interest.

 

If you strongly desire a particular property, purchasing at auction can benefit you as you can easily witness the interest level of other buyers and beat the competition. Ensure to have all the necessary checks and professional advice completed before bidding, as the contract for sale will be signed on the day of the auction.

Expressions of interest campaign

In the title of the property listing, the owner will convey an “expression of interest” campaign to invite buyers to submit an offer within a timeframe.

 

An expression of interest allows buyers to submit their highest offer on a property before the closing date. The owner can choose to accept the best offer (or most appealing offer) or decide against selling the property if they do not receive the desired selling price or conditions they want.

Sale by tender

Sale by tender also provides buyers with a deadline to submit offers. Typically, the buyers will fill out a tender form with their price offer (their perceived value of the property) and special terms and conditions and seal the tender documents in an envelope. The seller will receive and open all offers simultaneously on the due date and decide which offer they will accept.

 

Are you interested in purchasing a Fall property in Southern Tasmania and need help submitting your offer? You can contact our professional staff, who will gladly guide you through the offer process for the property you want to purchase.

What to expect during the offer process in Southern Tasmania

Purchasing a house offer process - Fall Real Estate

The offer process starts from the moment you decide you want to buy a property. In the next part of our article, we start from the very beginning and explore each phase of the offer process so you can come away with the winning property of your dreams!

Preparing to buy

Before looking for your next home or investment property, contact your lender to obtain a home loan pre-approval. Getting a home loan pre-approval will allow you to begin your property search at the right price for your financial situation.

 

To create a realistic sale price limit, you will also want to understand the hidden costs of purchasing a home. Many upfront costs are involved when buying a property and click here to read our article that reveals the most typical.

 

Another important step before searching for a property is to decide which features you desire in your next home. These features could include the number of bedrooms, land size or living spaces.

Searching for your property

All our properties for sale in Southern Tasmania are advertised on www.fall.com.au/buy/, where you can sign up for our Property Alert Sign-up and newsletter. You will be alerted to every new property in the suburbs and regions and the price range you are looking to buy in.

 

You can also follow us on social media via our Facebook and Instagram and be the first to know of upcoming properties, helpful articles and guides, and free downloadable printables. You will also be able to find and contact our Fall property agents, who specialise in your search areas and who regularly post previews of properties about to be released on the market!

 

You can also find all our properties on www.realestate.com.au and www.domain.com.au.

Inspecting the property

You are welcome to inspect our properties at the scheduled open home inspection time. However, if you have already fallen in love and are in a fast-paced market, you may wish to schedule a private appointment with one of our professional property agents to stay ahead of the competition - giving you more time to prepare and organise your offer for submission.

Making an offer

As mentioned above, you can make an offer in many ways, and the process of buying in Southern Tasmania will differ for each property.

 

With the most common sale method being a private treaty (private sale), you can make a verbal offer to the property agent to gauge whether the owner will be interested in your offer price. You can do this over the phone or by meeting with the Fall property agent.

 

Our Fall property agents recommend that buyers put their offer in writing as soon as possible so the owner understands your offer is serious and tangible.

 

For written offers, our Fall property agents will provide a standard contract of sale for you to use to make an offer to the seller. The documentation will need to include the following information:

 

  • Buyer’s details
  • Offer Amount
  • Deposit amount – given to the real estate agency
  • Proposed settlement date
  • Conditions of your offer – such as finance approval and a building inspection
  • Cool off period

Conveyancer

If you make an offer by sending a signed written contract to the seller, ensure that you understand the document you are signing and have a conveyancer or solicitor review it before you do.

 

Once you have signed your offer, our Fall property agent will present the offer to their client for consideration. The time for response can vary depending on whether our client requires time to contemplate an offer.

 

The seller can decline the offer for many reasons. Some involve the price needing to be higher, the owner wanting a cash offer, or the owner disagreeing with some of the terms and conditions within the contract.

The negotiation process

There is no negotiation stage when the seller and the buyer agree on the initial offer and all the terms and conditions within the contract.

 

When an offer is declined, however, the negotiation process begins. The seller may reject and make a counteroffer, suggest they will only negotiate if the offer is much higher or decline altogether with no response.

 

The buyer will then respond by continuing the negotiation by accepting their counteroffer, making their own, or rejecting the offer and walking away.

 

During an auction, expression of interest or sale by tender, the owner may reject the highest offer but negotiate a more favourable price with the highest bidder - beginning the negotiation process.

 

Once an offer (sale price) is accepted, the seller will review the contract and may make amendments to the initial contract and ask their lawyer to read over the contract before signing.

 

Our property agent will then give you the contract to review and sign.

 

If amendments have been made to the contract, you should ask your conveyancer or lawyer to review the contract again and ensure all is correct before signing. You may also reject, add to or change the contract's terms and conditions each time the seller sends you an amended contract - this continues the negotiation process.

 

The negotiation process will continue until both parties sign the contract and initial all the amendments within the contract. Alternatively, one party may still decide to decline at any time during the negotiation process.

Sign the contract

Once you and the owner have agreed on a sale price and both parties have signed the contract, the buyer must provide a deposit of 10% (the buyer and seller may choose to negotiate more or less) of the purchase price as a sign of good faith to the real estate agency.

 

The real estate agent places the deposit in a trust account until the property is settled.

Zoomed in image of a person signing a tenancy agreement with Fall Real Estate

Buyer’s responsibilities

Once you have signed the contract, you will have a certain number of days (decided within the contract) to organise building inspections, contact your conveyancer or lawyer, and contact your bank to start the official loan application.

 

You can organise a building inspector to assess the property before making an offer. Alternatively, you can include the inspections as a standard condition in the contract and select a defect limit.

 

Ensure that the necessary building inspections are to be undertaken by a professional are included in the formal contract.

 

By having a building inspector assess the property, you can detect potential problems and determine the cost to fix them. The defect limit will allow you to break the contract without penalty if the cost to fix the issues is higher than the defect limit.

 

You should also be in contact with a conveyancer or lawyer. A conveyancer will be able to:

  • advise you about any steps you may need to take before making an offer
  • inform you of any issues or problems with the property title,
  • undertake further checks on the property to ensure all is above board, and
  • add clauses to the contract to provide additional protection and minimise risk.

Value the property

Your bank lender will send someone to value the property to ensure the property you have chosen will pay for your mortgage in the instance you can no longer pay your mortgage repayments.

Settlement 

Settlement is the period between signing the contract and the day you can move in, typically between 30 and 90 days.

 

During the settlement period, finance is processed, inspections are undertaken, conveyancer checks are done, title details are prepared, documentation is organised, and the sale is finalised.

 

The settlement date (the last day of settlement) is when the title is transferred, the keys are given to the buyer, the property price is paid to the seller, and the buyer can officially move in!

Pre-settlement inspection

Many solicitors will recommend their clients have a final inspection before settlement to confirm the property condition and chattels are precisely the same as on the contract to purchase.

 

A final inspection aims to ensure the property you are purchasing is in the condition you agreed to buy it. It is time to ensure the seller made the agreed-on repairs and that no issues have arisen with the home since you last looked at it.

Settlement Day

The most exciting day is moving day! And probably the most exhausting! Make sure you have all hands on deck!

 

Download our moving home checklist and feel more confident on moving day!

 

On Settlement Day, your Fall Real Estate agent will wait to be notified of the title exchange, and as soon as this happens, they will be given permission to hand you the keys to your new property!

 

Congratulations - it is time to move in, get some take-out and celebrate with some bubbly!

Get my house appraised

The appraisal process is conducted well before your commitment to sell - unless you are time-sensitive. Our guidance at this stage can not only create better outcomes, but it can also save you considerable time and money.

 

Our Fall Property Agents listen to your goals and aspirations at the house appraisal - your real estate journey starts here. A property appraisal will be significant in helping you make informed decisions.

 

The process of getting a property ready for market can be stressful. However, receiving sound advice and forming a professional relationship with your agent from the house appraisal will build a strong foundation for your real estate journey.

 

Once you decide to take your property to market, you will already have an agent who knows your aspirations for you and your property.

 

You can contact us today and organise a free no-obligation house appraisal for when you are next available! Simply either click here to find your ideal Fall Property Agent, contact one of our eight offices in Southern Tasmania or fill out our appraisal form so that we can find the perfect agent for you, your property and your circumstance.

Contact a Fall Property Agent

Dedicate some time to finding your ideal property agent. Head to Our Staff page and scroll through to see all our professional and experienced agents. On Our Staff page, you can click “Learn about my agent” to find out whether they are the right agent for you and your property.

 

Our administrator team can also help connect you with the perfect property agent. Knowing all our staff and how they operate, our administration team can easily connect you with the right agent.

Book your no-obligation house appraisal today!

The market changes constantly. There is continually plenty of local interest combined with good interstate investor numbers. Many people are keen to own a piece of our beautiful island state.

So, why wait? Contact us today, and let us make your dream a reality.

Disclaimer: The information on this website is not legal or professional advice and is general in nature; therefore, the editorial content or articles on this website are intended as a guide only and do not consider your personal objectives, financial situation or particular needs. For more information, please read our Terms of Use and Privacy Policy.

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