Top 5 tips on making an offer on your dream home

Published on November 23rd, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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If you are on the market to purchase a house, you will soon find that there are many opinions on how you should go about buying your dream home. But situations differ from person to person, and you will soon find out that there isn’t a one size fits all solution. To ease the process of making a dream home we have put together five handy tips.

1. Know what you are buying into

One of the best ways to prepare yourself when it comes to purchasing your dream home is to research. Preparing yourself by researching can help you know if you are getting a good deal, if you are buying in the right time frame, and whether you have enough finances to afford your dream home. Comparing sales in the same area for properties similar to the one you are interested in can show you what the property value is, and if you are about to make a good investment.

2. Get the intel from an agent

Unless if you are a native to the property industry, it can take a while to know the ins and outs of it. Speaking to an estate agent can help you cut down the legwork that comes with finding out which areas have the best property values, and if you are getting the best value for your money. When you are speaking to a sales agent it is advisable not to tell them what your budget is as this can give them leverage into getting a price that favours them.

3. Know how the sale process works

Wrapping your head around the process of how property is sold can prepare you as a buyer. Knowing what is involved during the offer process such as; whether offers will be disclosed, and whether you will get leverage of having a pre-approved loan is essential. You can ask your sales agent how the sale process will be handled as this process varies from agent to agent.

4. Know when to walk away

You may have already pictured yourself in your dream home and grown an attachment to it, but it is vital to know when to let a dream house go. Having a set budget can help you stick to your guns and help you walk away from a property that you cannot afford. Holding onto your dream property with an iron fist can give a seller leverage to make the deal swing in their favour. By doing your research and sticking to your budget you will know when it is time to walk away.

5. Get your finances in order

Once you have put in the research into property prices the next thing you can do is start saving for a deposit if you don’t already have one saved up. Saving up to 20% of the deposit can lower the amount that you need to borrow in terms of a loan. It also helps to get a pre-approved loan even if you are just looking. This can give you better negotiating power.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Approval for home loans is always subject to our lender’s terms, conditions and qualification criteria. Lenders will undertake a credit check in line with responsible lending obligations to help determine whether you’re in a position to take on the loan you’re applying for.

The interest rate, comparison rate, fees and monthly repayments will depend on factors specific to your profile, such as your financial situation, as well as others, such as the loan’s size and your chosen repayment term. Costs such as broker fees, redraw fees or early repayment fees, and cost savings such as fee waivers, aren’t included in the comparison rate but may influence the cost of the loan. Different terms, fees or other loan amounts may result in a different comparison rate.

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