Congratulations, you’ve received an offer on your house. The price is right, so you’re good to go right?

Well, not exactly. There are a few other considerations you need to factor in when reviewing an offer, particularly if you’ve received several offers.

Each offer should be considered on its own merit and on your personal situation.

Here are some things you need to consider when reviewing offers:

How is the buyer financing the purchase?

Anyone can make an offer on a property, but you need proof they can afford the purchase. Proof that they can afford your property will indicate they are serious about property and someone to negotiate with.

If the potential buyer doesn’t show proof of finance, it could suggest they are going to have difficulty in raising the finance, and the sale may fall through.

You should ask buyers using a mortgage for evidence that their lender has agreed, in principle, to lend them the money. This is known as pre-approval, (or sometimes approval-in-principle or conditional approval). The lender will prepare a formal document indicating how much money it is willing to lend the buyer for a home loan.

Proof of funds for a cash offer could include bank or investment account statements. Each should show that the buyer has the funds necessary to complete the transaction.

You may also need to consider whether the potential buyer is waiting on the sale of their current property as this may affect the settlement date.

• Cash vs mortgage buyers

If you need to sell your home quickly, an all-cash offer might be the better option – as you won’t need to wait for a buyer’s full mortgage approval on your property. However, cash buyers potentially have negotiation power, and may offer you less than the asking price.

How big is the deposit?

When a buyer makes an offer, they will state how much of a deposit they are paying – this is usually between 5-10% of the purchase price but it can differ depending on the buyer’s situation.

Unless specifically stipulated in a contract a deposit is not refundable. In New South Wales every residential contract provides a cooling off period. For an existing property it is five (5) business days and for an off the plan property it is 10 business days.

Generally, if a buyer is serious about the offer, they will offer a reasonable deposit to secure the sale.

Terms and conditions of sale

Most offers will be subject to terms and conditions, such as subject to finance, pest inspections and searches. They may also include repairs and upgrades the buyer wants done before completion.

Settlement date

Property settlement is the legal process of when ownership passes from the you to your buyer, and they pay the balance of the sale price.

The seller sets the settlement date in the contract of sale, and as a rule of thumb, this is generally within 30 to 90 days of the offer, but they can be longer or shorter.

If you are wanting to sell quickly, (for instance, you may have high ongoing costs or you need to sell your house to purchase another property), you may consider opting for a slightly lower price, if the buyer states a 30-day settlement.

We always believe you should act fairly and honestly with buyers – you don’t want to waste your, or their time. For instance, if you’ve had multiple offers, and you need time to think about them, let the buyers know when they can expect you to make a decision on their offer.

Most importantly, remember when an offer comes in, it is just that; nothing is binding, and you don’t have to accept any offer you don’t want to. Nothing is set in stone until everyone has signed on the dotted line.

Our aim is always to give you information to enable you to make fully informed decisions.

If you’re thinking of selling, or would just like to know what your house could get in today’s market, contact us for a free, independent and non-obligatory quote. Our experienced team will also give you tips and ideas so you can get the best from your property.

We’d love to see you in our Cardiff office or you can give us a call on 02 4954 8833. Or send us an email to: mail@apnewcastle.com.au.

If you’re looking for more handy tips on selling your property, or what to look for when buying or selling a property check out our Facebook page.