Hi I am Russell Berry, as the Licensee of Halls Head Real Estate it is my job to make your real estate move easier and as such I thought I would share with you answers to questions Mandurah Real Estate Agents commonly receive. If you have any additional questions that you feel I have not covered, please feel free to use “Send Us a Message” at the bottom of this page.
Perhaps the easiest way to anticipate the questions you would want to ask a Mandurah Real Estate Agent would be to share with you the answers I recently gave to a friend. She rang me asking for advice for her son, who was buying a property in an area well outside of my service area, but still within Western Australia. Here is how the conversation went.
Qu.1 He is interested in trying to secure the property but doesn’t know how to make the first move, what do you suggest?
Ans.1 Well chances are if the real estate rep has his contact details he will call him at some point, but the rep will be inclined to call people based on the interest they displayed at the time. So play it safe & transparent and call the rep as soon as practicable. Tell the rep you are interested in trying to secure the property and make an appointment to do so.
Qu.2 The property has a price range that is $395,000 to $425,000? How does he know what the owner will accept? How does he know what would be a reasonable starting point?
Ans.2 If he missed out on this one does he have other houses that he is interested in, almost as much? Has he been inside other homes that have sold in the area? Does he know what price they were sold for? Based on the sale price of those and allowing for the extras this home may have, what price can he see someone paying for this one? Is he prepared to pay that price? OK … so sees value at the middle of the price range,but couldn’t go to the top of the price range as it is outside of his ability to fund it and at any rate he would prefer to buy one of the others if the owner wanted to the top part of the price range. So, if you offered at the price you are talking and someone else offered as well, the real estate rep isn’t going to disclose your price to the other buyer but by the same token you would not get to find out what the other buyers offer is either. So at what price could you comfortably say that if the home sold at that price you wouldn’t have been prepared to pay that price or one dollar more than that price? I don’t have to know what that price is, I just you to consider that scenario and if you don’t like the second property near as much as this one, I think you should seriously consider the price at which you offer. There are other ways that you can make your offer attractive to sellers.
Qu.3 Apart from price, how else could me make our offer more appealing to the seller?
Ans.3 Well there are four main things. Those being the type of your financing, the amount of time it takes to settle, the amount of deposit paid and the level of complexity of the conditions you may choose to add to your offer. Firstly some people who actually require financing to fund a purchase make a cash offer instead of a subject to finance one. These people often have established lines of credit that are secured about the equity in other property, however for a first time buyer or for most people for that matter you put too much reliance on the bank approving your loan. You could however see if you can get a pre approval letter from the bank, that may help. Secondly you could ask the lender how quickly they could process the loan approval for you, as a quicker than standard loan approval time is likely to be well received by a seller. Thirdly while many reps only ask buyers for a small deposit (say $1,000) I think it poor advice. The reason being, imagine a seller considering two offers at the same time. In the seller’s opinion perhaps they see them as being similar with regards to price, settlement date and conditions, yet one other buyer within seven of acceptance of his/her offer has committed to invest an initial investment of $16,000 towards the purchase, while the other buyer has committed $1,000 within the same time frame. You could forgive the seller for assuming that the buyer making the $16,000 commitment, has a greater capacity to proceed, is more likely to proceed, is less likely to change his/her and has a better chance of obtaining the required financing, none of which maybe true. The fact is, the buyer making the $1,000 deposit may be in a much stronger financial position than the other buyer, however no one has ever taken the time to explain to the buyer the benefits of making a significant initial investment on a property. Now on the subject of conditions, the starting point, knowledge wise is that real estate is sold on an “as is” basis, unless agreed otherwise. So, in other words if you inspect a property and one of the four gas burners in the kitchen does not work and nothing is agreed otherwise, then you have bought a house with three out of four gas burners working and after settlement you could get someone to fix it. Alternatively you could ask the real estate rep to write a clause in your offer that stipulates that gas, electrical, plumbing and reticulation be in working order at settlement and then you could check that they are working at your pre-settlement inspection. However if the house you are considering is in your opinion, considerably run down looking, then the path of least resistance to securing the property is to make an offer relatively free of conditions that the owner may feel are onerous. To put that into perspective the seller didn’t bring the property up to your standard to attract more and such they are likely to resist the requirement to bring it up to your standard to sell it as well. So consider doing your own due diligence as to the time and energy it would take to bring the property up to your desired standard and then consider buying the property “as is”.