Inconjunction Real Estate - What Are Your Terms?

As well as presenting a price, you may also present terms of the offer. Terms may include conditions or contingencies. Examples of terms may include: -

The offer is contingent on a clean building and pest inspection (or any other inspection you intend to carry out) – by including this term you are setting up a point of reference further down the track if you find problems (and you want to negotiate an alternative offer based on the costs of repairs);

The offer is contingent on obtaining suitable finance (remember that your lender will probably want to conduct their own inspections / valuations and may disagree on the value of the property – they may not offer full finance);

Settlement can be completed within x weeks – this can be very short (i.e. you need to move in within 5 weeks) or very long (i.e. you need to time the move with your company relocation - 6 months for example);

Inclusions may be varied (i.e. the alarm system is to be included);

Clean-up or repairs may be stipulated (i.e. the picket fence needs to be fixed, the gardens weeded);

You may also vary timing of the deposit or even the total payments.

In-short, you can vary whatever you want in your offer. Often the terms are standard and usually not contentious, but you may have specific clauses that are unusual to you. Again you’ll depend on your conveyancer / solicitor for advice and guidance during this time.

A final note when presenting your offer – submit it in writing. This looks much more powerful and avoids any confusion or misunderstandings. It may also be appropriate to include an expiry date/time (especially if you are offering to meet the full asking price) – you may state that the offer expires at noon the next day. In a seller’s market, the offer may be valid for only a matter of hours (i.e. you may be interested in two properties and don’t want to miss out on both). Including an expiry date and time injects a certain sense of urgency.