You have done your homework, you have seen enough properties, and you have found that property which ticks most of your boxes. Now it's time to make an offer. Here are a few things to consider before you go ahead and make your offer:
The asking price: a seller’s asking price is usually higher than the price they will actually settle for – talk to the agent to get a feel for what the seller realistically wants
The seller’s circumstances: if the seller needs to move soon he is more likely to accept a lower offer
The price you are prepared to pay for the property: this will depend on your budget, how much you like the property and whether you are considering other properties
Interest in the property: if the property has been on the market for a long time without much interest the seller will be more negotiable than if several buyers are showing interest
Previous rejected offers: previous offers rejected by the seller may give an indication of the price the buyer is looking for – however the seller’s circumstances may have changed and he might accept an offer he previously rejected
Bank valuation: before making your offer it is a good idea to get an indicative valuation from the bank valuer – this will ensure that you get the amount of financing you need and will give you an indication for the value of the property (be aware however that valuers will often undervalue renovated properties).
If you have been using an agent you should make your offer through the agent who showed you the property. When making an offer indicate clearly what you expect to be included in the property (eg, furniture) to avoid any misunderstandings. Also make sure you emphasize your positive points as a buyer so the seller is more likely to be swayed by your offer (eg, you are a cash buyer).
The seller will then either accept, reject or give a counter-offer, and negotiations will continue until a price is agreed or they fall through.