What to expect during the offer process

Your ultimate guide to buying real estate in Tasmania

May 2024 | By Fall Real Estate | 12 Minute Read | Tags: Guide, Sell, Buy

In this article

  • Learn how property can be sold in Tasmania and what to expect during the offer process.
  • Find out what practical steps to take in the process towards making an offer.
  • We reveal several ways you can search for dream property in Hobart and Southern Tasmania. Including, signing up for Fall’s Buyer Property Alerts!
  • We look at the different professionals you may choose to contact during the process of making an offer on a property.
  • We highlight how to present your offer to the seller - there are more ways than one!
What to expect during the offer process written by Fall Real Estate.

Have you just returned from an open home where you discovered your dream home? The one you’ve been searching for, and now you've finally found it!

 

Finding your dream home is thrilling news! But you might be wondering what to expect during the offer process and where to begin.

 

If you have applied for and received pre-approval for your home loan, you know your maximum budget for your next (or first) property purchase, and you're ready to make an offer. So, what should you do first?

 

The next stage, starting the offer process, can be daunting for many people, and we frequently receive questions about the steps from the initial offer to owning the property. What exactly is involved?

 

In this article, we guide you through buying real estate in Southern Tasmania, with many similarities to other states and territories. As you read this article, we hope you gain the confidence and assurance needed to successfully place your first offer on your dream home.

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.

Ways to purchase property in Southern Tasmania

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. For a more detailed explanation, read our helpful article: Navigating selling your property: The four main methods.

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 $800,000”, "500,000+ range" or "$695,000 - $730,000".

Auction

Auctions, though less common in Tasmania, are increasingly popular for high-interest properties. Buying at auction can be advantageous as you can gauge other buyers' interest and outbid the competition. Ensure you complete all necessary checks and obtain professional advice beforehand, as the contract for sale is signed on the auction day.

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.

Sale by tender

Sale by tender gives buyers a deadline to submit offers. Buyers complete a tender form with their price and terms, sealing the documents in an envelope. On the due date, the seller opens all offers simultaneously and decides which to accept.

 

For more information about the different ways sellers choose to market their property, read our helpful article "Navigating selling your property: The four main methods."

What to expect during the offer process in Southern Tasmania

The offer process | Fall Real Estate

The offer process starts the moment you decide to buy a property. Let's explore each phase of the offer process so you can come away with the successful purchase of the property of your dreams!

Preparing to buy

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

 

To establish a realistic sale price limit, it's crucial to grasp the hidden costs associated with purchasing a home. Numerous upfront costs come into play during the property-buying process. Click here to uncover the most common ones.

 

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.

 

Before diving into your property search, it is essential to define the features you desire the most in your next home. Consider aspects such as the number of bedrooms, land size, or living spaces that align with your preferences and lifestyle.

Searching for your property

All our properties for sale in Greater Hobart and Southern Tasmania are listed on www.fall.com.au/buy/. Here, you can sign up for our Property Alert Sign-up and newsletter ensuring you're notified of every new property within your desired suburbs and price range.

 

Additionally, stay updated by following us on social media platforms such as Facebook and Instagram. Be the first to know about upcoming properties, access helpful articles and guides, and download free printables.

 

Our Fall property agents, specialising in Southern Tasmanian areas, are also available for contact. They regularly post previews of properties about to hit the market, contact their potential buyers revealing new properties, and can share with our Fall team what you are looking for.

 

For further browsing convenience, our properties are also listed 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. This will give you more time to prepare and organise your offer for submission.

Making an offer

When making an offer for a property in Southern Tasmania through a private treaty sale, it's essential to follow a structured process to ensure clarity and transparency for both parties involved.

 

You can initially express your interest in the property by making a verbal offer to the property agent. This can be done over the phone or through a face-to-face meeting. However, it's important to note that a verbal offer may not hold as much weight as a written one.

 

It would be best to put your offer in writing as soon as possible to demonstrate seriousness and formalise it. This not only provides clarity but also ensures that the owner understands the specifics of your offer.

 

Your property agent will typically provide you with a standard contract of sale to use when making the written offer. This document will serve as the basis for your offer and should include essential details such as:

 

  • Buyer's details: Your personal information including name and contact details.
  • Offer amount: The price you're willing to pay for the property.
  • Deposit amount: The initial deposit you're willing to provide, typically given to the real estate agency.
  • Proposed settlement date: The date by which you intend to complete the purchase.
  • Conditions of the offer: Any specific conditions or contingencies attached to your offer, such as finance approval and a building inspection.
  • Cooling off period: A specified period during which you have the option to withdraw from the purchase without significant penalties.

 

Once you've filled out the contract of sale with the necessary details, you can either send it to your conveyance or solicitor or submit it to the property agent for review and presentation to the seller.

Conveyancer

If you're making an offer by submitting a signed written contract to the seller, it's crucial to ensure that you fully comprehend the document you're signing. You also have the option to select and reach out to a conveyancer or solicitor to review the contract before your real estate agent presents the offer to the seller.

 

Once you have signed our offer, our Fall property agent will present it to the seller for their consideration. The timeframe for their response can vary depending on whether the seller needs time to carefully evaluate the offer.

 

The seller may decline the offer for various reasons, including a desire for a higher price, a preference for a cash offer, or disagreement with certain terms and conditions outlined in 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. They can also ask their conveyancer 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 can send it to your conveyancer or solicitor to review 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 and walk away at any time during the negotiation process.

Sign the contract

contract signed | Fall Real Estate

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

 

The real estate agent places the deposit in a trust account until the property is settled. This contract deposit is then used to pay towards the cost of the property purchased.

Buyer’s responsibilities

After signing the contract, it's crucial to initiate several key actions within the timeframe specified in the agreement. Firstly, you'll need to arrange building inspections, engage with your conveyancer or lawyer, and kickstart the formal loan application process with your bank.

 

If additional clauses have been incorporated into your contract, it's imperative to ensure these clauses are actively pursued and confirmed within the designated timeframe.

 

Regarding building inspections, you have two options: you can schedule an inspection before making an offer or incorporate inspections into the contract with a specified defect limit. Whichever route you choose, it's imperative that these inspections are conducted by qualified professionals to be validated and outlined explicitly within the formal contract.

 

Having a building inspector assess the property serves multiple purposes. Not only does it help identify potential issues, but it also enables you to gauge the financial implications of any necessary repairs. Additionally, the inclusion of a defect limit provides a safeguard, allowing you to exit the contract without penalty if repair costs exceed this predefined threshold.

 

You will also need to choose and contact a conveyancer or solicitor. These legal professionals offer invaluable guidance throughout the offer process. They can advise on pre-offer steps, scrutinise property titles for any discrepancies, conduct comprehensive checks to ensure legal compliance, and introduce clauses to fortify the contract and mitigate risks effectively.

 

Tas Conveyancing states that,

 

"a conveyancer plays a crucial role in the property settlement process, ensuring that all legal requirements are met and providing valuable advice and guidance throughout the transaction."

Value the property

Your bank lender will send a licenced valuer 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 conveyancers or solicitors will recommend that their clients have a final inspection before settlement to confirm that 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 same condition as when you agreed to buy. 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 it's also 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. 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

Are you considering selling our property? Then the time is now to request one of our complimentary property appraisals so you can start the appraisal process. Our guidance throughout the selling process 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 your property appraisal. This is where your real estate journey begins.

 

The process of getting a property ready for market can be stressful. However, receiving sound advice and forming a professional relationship with your property agent will keep you informed. This means that once you formally decide to take your property to market, you will already have an agent who knows your aspirations for you and your property.

 

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

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 property 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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