Often, upon finding their dream home or real estate investment opportunity, people hesitate to make an offer. They would presume the seller would not sell the property for their offer price. Sometimes, people don’t make an offer because the pre-approval of finances weren’t finalised.
However, in most cases, the buyers don’t communicate their interest to the agent. When the property is sold for a price similar to their budget, they rue the lost chances. Then, the buyers tell the agents if they knew the property would sell for such prices, they would’ve made an offer. Some would even say they would’ve offered a better price for the house.
So, if you have found your dream home, don’t make the same mistake. Make the offer, but bear the following points while you do:
If you are genuinely interested in a property, don’t delay on making an offer. There is no way to know when the prices will fall and reach the bottom. Some properties in certain suburbs are actually rising significantly! If you wait too long, you might end up paying more or missing the opportunity altogether.
While you might not want to reveal all your cards, it makes no sense to tell the agent to inform you if someone else makes an offer. You should make an offer according to your budget and not based on other people’s situations. You can never know when other offers might arise, or what conditions might be associated with them that will either appeal to the sellers or not.
Consider the market conditions while making your offer. Less competition means you have more bargaining power and can negotiate the sale price to your advantage. However, when the market is booming with many buyers, you lose that opportunity. The real estate market in 2016 was definitely the former, with buyers generally holding all the power. However 2017 might be a different story, with the market now showing signs of recovering. So, if you’ve found your dream property or real estate investment, take a chance! Make an offer and you might be surprised at the result.