Ready to buy your dream home? Make sure you have all your ducks in a row and understand what it takes to make your Offer to Purchase (OTP) stand out to the seller in order to secure your new home. Ooba Group give some insider tips on the five steps you want to take to make your OTP as attractive as possible to the seller:
Know what you want
Before you start looking at homes, jot down a list of your ideal ‘must haves’ and ‘nice to haves’ so that you can narrow down the search. Think about which neighbourhoods you would like to live in, what amenities you need close by, how much space you need in the house and whether or not you need a garden and/or pool.
Be realistic about your finances
Speak to your banker or financial advisor and find out what home loan you qualify for. Plan how much money you need to put aside for a deposit (usually at 10% of the purchase price) which you want to have ready so that you can show the seller you are serious. Further finances to plan for are transfer and legal fees and whether or not you need to budget for renovations to the house you would like to buy. Understanding these finances beforehand will make it easier for you to put in a realistic offer.
Show the seller you are a serious buyer
The best way to show that you are serious about buying is to get prequalified. Doing this is a quick and easy process that you can do using free online tools such as the ooba Bond Indicator. The prequalification process gives buyers a certificate which buyers can show the seller or estate agent as proof that they have the funds necessary to purchase the home.
Consult an estate agent
Developing a relationship with the estate agent who knows your desired area well is a savvy way to get a ‘leg up’ on the competition. Check with the estate agent if you have all the necessary paperwork before making an OTP. Ideally, you also want the agent to introduce you to the seller to create a personal connection. When it comes to the offer, speak to the agent about how much other homes in the area have sold for recently to see if your OTP is in line with the market value of the property. It is also not a good idea to go in as low as possible with your offer, especially if there is a lot of interest in the home. Rather stay on asking price or even go in slightly higher to show the buyer that you are serious.
Be ready to move fast
If your OTP is accepted, you have no time to waste. Generally OTPs include a 72-hour clause, which allows the seller to keep marketing the home, and to accept an offer if it’s better than yours. So you need to get your paperwork together and finalise your offer within 72 hours before the house is sold to the competing buyer.
