subject: Getting The Cheapest Home Loans – Make Your Offer [print this page] Getting The Cheapest Home Loans Make Your Offer
It happened. You found it. After weeks of searching online, scanning newspapers, and meeting with real estate agents you have found the home you've always wanted. The next step is to make an offer. Ideally, you want to find the cheapest home loans possible, while staying true to your desires.
You may want to discuss the property with a conveyancer (a specialist lawyer that deals with buying and selling real estate in Australia). You can get advice on how to develop the best offer and get affordable financing. At the same time you may benefit from a few ideas to help you avoid costly mistakes prior to discussing the issue with the conveyancer.
Strategy
Before you make an offer you might want to keep a few of the following ideas in mind. They can be used to form a good strategy for getting the cheapest home loans.
1. Be discreet. There are good reasons to hold back some information when you are negotiating with an agent. Above all, do not tell them how much money you can borrow or what you're willing to pay. If you do you will have no ability to reduce the price at another time. You have to keep the upper hand.
2. Keep an eye on the competition. Obviously, the situation might arise where you will be making competing offers against other potential buyers for the same house. The more that you understand about them, the better your chances are of coming up with a better offer. One good way to accomplish this is to be there for the open inspection sessions. You will be able to interact with other buyers, gauge their interest, and perhaps learn how to read them.
3. Use an unprofessional agent to your advantage. If you want to get the cheapest home loans you need to use whatever advantages come your way. A bad agent, one that gives away the lowest price that the seller will take to complete the sale, may be a weakness you can use. This gives you an edge.
4. Keep the offer in your favor. You should not set your offer at the price the seller wants for the property. In fact, the best approach is to present an offer below the asking price. However, you should keep the status of the market in mind when making a proposal. For instance, if the market is doing better than average, it might be possible to get 10% below. If the location of the property is less than ideal or farther from the city, you could even get 15%.
Include Conditions
When you are creating an offer for a house, you should take the time to insert certain conditions that will offer you protections. The conveyancer will be able to supply you with the appropriate provisions. Here are some good examples:
You could insert a "Subject to Finance" clause in the contract that would provide a few weeks to get the financing finalized. It does not usually take this long for lenders to get home loans set up but it could be help to have the extra time.
You can include a clause that requires a successful home and pest inspection to e completed before the purchase is finalized.
Simply put in the time to do your due diligence and get plenty of counsel from your conveyancer or other financial advisor.
Each situation will be different. You need to keep that in mind as you prepare an offer on a house.
