How to make an offer on a house
Making a successful offer on a house is the first important thing you need to accomplish to ensure that you will get the house which you and your loved ones want.
In Australia, there are three different ways to buy a house, private treaty, auction and private sale. Private Treaty is one in which a real estate agent would represent the vendor and liaise with the potential buyers on a one to one basis. Auction would involve at a point of time, many people would gather and bid in open for the preferred price of the house. Private Sell is similar to the private treaty, however, you will be dealing with the vendor directly.
Buying a property or taking a house offer is an emotional process, and it is best to keep the emotion under control at all time. However, sometime it is hard, because a house to many people is more of a sentimental value than monetary item.
What does a mortgage broker do
A professional and responsible mortgage broker can help you to smooth out the house purchasing experience. They will do that in two folds, firstly, they will work out your maximum loan amount, hence you can narrow down on the specific properties in accordance with the price range. Second they work as an effective communication medium between you and the real estate agent.
The mortgage broker will evaluate your financial and non financial situations including your income evidence, job history, credit history, and asset and liability detail and then assist you to select an appropriate home loan credit product with a low interest rate and then help you to arrange the paperwork and supporting documents, to be forwarded to the bank for credit assessment. They will then be able to obtain a pre-approval for you, which will set out the maximum loan amount which you can borrow.
The other very important function which a mortgage broker will do to help you to move into that house is that they will be an effective communication medium between you and the real estate agent, the mortgage broker will be able to convey the message that you are a sincere purchaser, and you have the financial prowess to settle the house via the existence of a pre-approval. The biggest nightmare for a real estate agent is to help the vendor to choose a buyer, and at the end of day, that buyer can not settle, either the buyer have no sincerity to continue on the contract, or they have not enough financial prowess to settle. Once this happens, the real estate agent needs to explain to the buyer in detail why it happens. The outcome of a premature cancelled sales contract can sometime bring negative effect to the property price, as potential new buyers might wonder as to the real cause behind the last cancellation of the sales contract.
When you do go to an open house inspection, it is advisable to stand next to the real estate agent and count how many offer letters had been handed out, as by doing this, you will roughly estimate how popular is the house, and how many competitors are you facing. It is important to remember that offer letter should be filled as complete as possible, which include filling in all the required information relating to the residential address, work phone, email address.
To be continued…