Here you’ll find information on how the offer and negotiation process works, tips on negotiating strategy, buying privately, paying a deposit, and how we can help.

How does it work?
The home is advertised at a set asking price, or at a specified price range (e.g. it may be advertised as ‘Buyer Enquiry Over’ (BEO) a certain price).  If you wish to make an offer, you need to contact the real estate agent (or seller if buying privately).  Your offer can be below the asking price or indicative price range – in fact in most cases your initial offer should be, because sellers expect to negotiate.  Be careful about putting your best offer up front, because the seller may expect that you will be able to raise it.

Your offer may also be subject to certain conditions being met e.g. ‘subject to finance’ or a ‘satisfactory builders report’.  Find out more about the different buyer and seller conditions.

The agent (or seller if you’re buying privately) will then prepare a Sale and Purchase Agreement which sets out:

• Your offer
• The settlement date (i.e. when the purchase price will be paid and you take possession of your new home)
• Any conditions you may have specified
• Any chattels (e.g. drapes, carpets etc.) included in the purchase price.

Once you have signed the Sale and Purchase Agreement (you should ask your lawyer to check it before you sign), the agent will then present your offer to the seller.  The seller may:

• Accept your offer
• Reject your offer (in which case you are free to submit another offer if you wish)
• Negotiate on either the price or conditions, or both, by putting in a counter offer.  In this case the agent will amend the Sale and Purchase Agreement accordingly and present it back to you.
• Negotiation goes on (with the agent acting as the go-between) until you and the seller reach an agreement on the price and conditions. 

If you cannot reach an agreement you can withdraw your offer, but once both you and the seller have signed the Sale and Purchase Agreement and initialled all the changes, it is legally binding on both of you.

Next page | Negotiating strategy >>

The content on our site is for information only. You should obtain professional advice relevant to your circumstances. Our lending criteria, terms, conditions and fees apply to all loans. Contact us for more details.