Private treaty is the technical name for selling a home. The property is put on the market, normally with a price guide, and buyers make offers at the time that suits them.
Here are our tips to making a successful offer:
- Understand the market
The way you handle the negotiation will be affected by the type of market you are in. If the market is strong, you should consider offering the asking price or even a little higher to secure the property. In a quiet market, you may be free to offer lower at the start and cross your fingers. But be prepared to negotiate up.
- Research the property
Do your homework on the property. Understand the title, know the boundaries and research easements. Examine the property not just as somewhere nice to live, but the condition of the building and make a list of work that will need to be done on it. Get a building and pest inspection report. Also factor in things like the electrics and their condition, age of appliances and the availability of broadband as you may wish to factor the cost of rectifying these into your offer if there are issues.
- Research the seller
Find out what you can about the seller and their motivation. Why are they selling? How long has the home been listed? Have there been any previous offers, and if the sale fell through, why? This can inform your offer and negotiating strategy. The owner of property that has been on the market for just a week will be patient and willing to wait for a top offer. The owner of a property that has been on the market for a while is more likely to consider a lower offer.
- Have your finance in place
Make sure any offer you make is based in fact and supported by your bank or mortgage provider and make this known to the agent when you present your offer. Speak to your insurance provider and check there are no issues in obtaining insurance.
- Make your offer
Always be polite and respectful when making your offer. Remember the agent works for the seller, not for you. Present the reasoning behind your price – including inspection reports and quotes to rectify any defects. Consider whether there is anything else you can offer that will make your offer more attractive – such as a shorter settlement time – based on what you understand will motivate your seller.