Genuine written offers are always treated in kind and stand a far better chance of a positive successful outcome. There are risks for a Buyer who likes a property but is sitting back and waiting for a supposed price reduction or for something to change. Our track record over many years is that we sell a large percentage of our stock for a price close to that listed and appraised. We therefore suggest if you have any further interest in any of our listings, please let the Agent know and work with them to work on submitting an offer. C. Buyer First Right of Refusal / Being advised of other offers or an imminent sale Whilst it may appear “logical and normal” for a Seller or Agent to come back to potentially interested Buyers before deciding on an offer, a Seller is in no way obligated to do so. There are some circumstances where written offers are so attractive to Sellers or have certain conditions on them that require or deserve an immediate response. In these instances, Sellers may say “I want to take the offer now”, irrespective of any request by previous Buyers or advice of the Agent to go back to other Buyers. Ultimately, the Seller always makes the final decision as to what offers to accept and when to do so. (Buyers do not have a first right of refusal or any right to advise of a pending or imminent sale.) As a Buyer, please do not get angry with an Agent if you miss out on a property, there are always risks for the Buyer in sitting back and waiting. If you like or want a property, it is suggested you act on that motivation to avoid missing out. Please let the Agent know if you are interested in one of our properties. 3) Market Value If you require any information about recent comparable sales, how values are established in the area, or information about the market to help you frame realistic perceptions around value, please feel free to enquire or ask for a list of recent relevant sales, we would love to help. Purchasing Variables/ Terms & Options: Option 3)–Subject to Sale This is where the buyer makes an offer that is made ‘Subject to the Sale’ of another property that they own. It is not considered as attractive to sellers as it does not provide them with as much certainty. A buyer may find the willingness of sellers to negotiate other conditions such as price more difficult in the case of a subject-to-sale offer. Deposit Whether cash, finance, or subject to sale the buyer will be required to pay a deposit at acceptance to the agent, this will be held in the Agent’s trust account as a sign of good faith and commitment in the process of submitting the offer. This deposit is part of the overall agreed purchase price. If the buyer has acted according to the contract, used their best endeavours to achieve finance approval, and still receives written notification of a decline by the nominated bank, then the deposit is returned to the buyer without deduction. The same applies to a subject-to-sale offer. In the event the buyer has followed the agreed contract, acted in good faith, and cannot achieve a sale in the timeframe agreed, then the deposit will be refunded without deduction unless an extension of time is requested by the buyer and agreed upon by the seller in writing. Sellers are not required or obliged to grant these expectations. Everything is the subject of a negotiation. Joint Forms of General Conditions 2022 All properties sold in Western Australia have an automatic accompaniment referred to as the ‘Joint Forms of General Conditions 2022’. It is binding on both buyer and seller and describes in detail how things will be handled in general circumstances or in the event of a dispute. The buyer will sign when submitting an offer that they have received this document (It is a 20-page booklet). The buyer should not sign a contract without receiving this book by either hard copy or email. 4) Final Contract Once an agreement on price, settlement, conditions, etc. has been reached with the Seller, the sale can then proceed. The final agreed contract is given to all parties and processing of the contract can commence. There is no cooling-off periods that apply in Western Australia for the purchase of property. Option 1)–Unconditional Cash Offer (Not Subject to Finance) This means the buyer is making an unconditional offer. Often buyers do this to make their offer look more attractive to the seller. Even if a valuation is done by the bank in the case of a line of credit, the buyer is representing that they will be able to settle at settlement. There is no turning back. This option applies when the buyer is the successful bidder at an auction. Cash offers can have “Subject to’s” such as Timber Pest and Building Inspections, RCD and smoke alarm annexures, pool compliance, gas, electrical and water clauses, like any other type of offer. A cash offer is unconditional of the funding component. These clauses rarely result in a sale not proceeding, so cash generally means the sale is certain to proceed once the appropriate clauses are met. Option 2)–Subject to Finance If the buyer requires the bank or a lending institution to provide funding, this is referred to as “Subject to Finance”. Generally, banks want 20-30% equity in the deal, depending on the purchase price, the bank, and the relationship that a buyer has with that bank. It can take between 21 to 28 days to get formal written finance approval. We suggest that the buyer obtains preapproval from the bank before the buyer makes an offer or at least speaks to the bank or broker and advises them on the intention to buy a property and get an “in principle” go-ahead from the bank. As the seller’s agent, we will be required to ask some general questions before writing an offer to establish what degree of advancement has occurred in the applying for finance process. Again, don’t be surprised or offended by this. To not do so is incompetent and certainly unprofessional by the agent. When entering a contract ‘Subject to Finance’ the buyer is agreeing to act in good faith and use their best endeavours to apply for finance. The buyer may be required to prove that they have done that in the event of a finance decline and cannot use “Subject to Finance” as a reason to change their mind later. This is part of the standard ‘Subject to Finance’ conditions enforced in Western Australia as outlined in the contract and the Joint Forms of General Conditions 2022.
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