Increasingly, buyers are being asked to submit offers through online platforms rather than by email or face-to-face with the selling agent.
You may not know this, but when you buy a home through an offer and acceptance, it’s called a ‘private treaty sale’. It’s how most people like to buy and sell property in Western Australia, but increasingly, buyers are being asked to submit offers through online platforms rather than by email or face-to-face with the selling agent.
While the technology may be new for making an offer, it’s important to remember the rules haven’t changed.
In a private treaty sale, the seller decides whether to accept an offer, reject it or negotiate. Licensed real estate and selling agents can also tell buyers there are competing offers and invite them to submit their best offer. Online platforms simply provide another way of managing that process.
After attending a home open you may be invited to submit your offer online. Depending on the platform the agent is using, you could be told whether your offer is higher or lower than others. You might be concerned this seems like an auction that will create a bidding war, but really it is no different to an agent advising you of where your offer sits among others. In fact, using an online platform could be more transparent as the agent is under no obligation to tell you where your offer sits in relation to others.
While this process feels more competitive, don’t get caught up trying to outbid everyone else and blow your budget. Before making an offer, decide what the property is worth to you, consider your budget carefully and stick to the maximum price you’re comfortable paying.
Remember, the highest offer isn’t always the one a seller accepts. Settlement dates, finance conditions and other contract terms can also influence a seller’s decision.
You might be concerned that not all the offers you’re seeing are from genuine buyers and maybe it’s a tactic to push the price up. Under WA’s real estate laws, agents must act honestly and not mislead or deceive anyone in negotiations. They should also take reasonable steps to satisfy themselves that all offers are genuine.
When you make an offer via these online platforms, you are generally submitting a signed Offer and Acceptance contract, which carries legal obligations if accepted by the seller.
Make sure you understand these legal implications and don’t make offers you are not prepared to honour.
If you’re unsure of how the online sales process will work, ask the selling agent to explain.
Whether your offer is submitted online or on paper, the fundamentals of buying property remain the same.
For more information visit the Consumer Protection website – https://www.consumerprotection.wa.gov.au/buying-home
