The Top 3 Mistakes People Make When Making Offers on Property (and How to Avoid Them)

Buying property is one of the most significant financial decisions you’ll ever make. Yet, many buyers—whether purchasing their first home, upgrading to their dream home, or investing in real estate—fall into common traps when making offers. At Liberty Wealth Finance Pty Ltd, we’ve seen these missteps time and again, and our goal is to help you avoid them.

Here are the top three mistakes’ people make when making offers on property, along with actionable information to help you avoid them.

Mistake #1: Failing to Understand Market Value

One of the biggest mistakes buyers make is relying on guesswork rather than data when determining how much to offer. This often results in overpaying or submitting an offer that's too low, which risks the seller not taking you seriously and losing the deal.

Why It Happens:

• Relying solely on the listed price, which may not reflect the property’s true market value.

• A lack of research on recent sales of comparable properties (“comps”) in the area.

  
  

How to Avoid It:

• Do Your Homework: Use tools like CoreLogic or OnTheHouse to research recent sales in the area and estimate the property’s true market value.

• Get Advice from Professionals: Work with a real estate agent or buyer’s advocate to understand local trends and pricing.

• Lean on Your Mortgage Broker: At Liberty Wealth Finance, we can guide you through your borrowing capacity and ensure your offer aligns with your financial situation.

Mistake #2: Skipping Pre-Approval for Finance

Many buyers make offers without first securing pre-approval for a home loan. This can lead to embarrassment (and frustration) if the offer is accepted but financing falls through. Worse yet, it can even cost you your deposit in some situations.

Why It Happens:

• Buyers underestimate the time it takes to secure a loan.

• A lack of awareness about how pre-approval strengthens their offer in a competitive market.

How to Avoid It:

• Secure Pre-Approval Early: A pre-approved loan doesn’t just give you clarity about your budget—it signals to sellers that you’re a serious buyer.

• Partner with Experts: At Liberty Wealth Finance, we simplify this process, helping you navigate the pre-approval process efficiently. For more details on pre-approval, visit MoneySmart’s guide to home loans.

Mistake #3: Letting Emotions Drive the Offer

Property purchases are emotional, especially if you’ve fallen in love with a home or are investing in a future nest egg. But emotional offers can lead to overbidding, blowing your budget, or overlooking potential issues with the property.

Why It Happens:

• Fear of missing out (FOMO) in a competitive market.

• Getting attached to the property before understanding its full condition or value.

How to Avoid It:

• Stick to Your Budget: Determine your limits and stay firm. Remember, it’s the bank’s job to assess what you can borrow—but it’s your job to determine what you can afford.

• Take a Step Back: Consult with trusted professionals like Liberty Wealth Finance or a buyers agent to ensure you’re making a balanced decision.

Be Prepared, Be Informed

Making an offer on a property doesn’t have to be stressful or overwhelming. By avoiding these common mistakes—misjudging market value, skipping pre-approval, and letting emotions take over—you can put yourself in a strong position to secure your dream property.

At Liberty Wealth Finance Pty Ltd, we specialize in helping clients navigate every step of their property journey, from securing the right loan to closing the deal. Whether you're buying your first home, upgrading, or investing, we’re here to make your experience smoother, more informed, and stress-free.

Need Help with Financing Your Next Property?

Contact Liberty Wealth Finance today to discuss how we can help you secure a home loan that works for you.

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📧 Email: mhannant@libertywealth.com.au

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Let us guide you to success in your property journey!