Seal the deal with a clean, simple offer

Too many complicated conditions, such as due diligence clauses, can be off-putting to vendors in a very tight market.

Too many complicated conditions, such as due diligence clauses, can be off-putting to vendors in a very tight market.

It's a competitive market for buying property. Prices are rising daily, making buyers desperate to clinch the deal. That means an offer that stands out may be the answer between success and failure.

The "cleaner" an offer is the more likely you are to succeed, says Graham Viall, who owns five Harcourts franchises in South Auckland. That means looking at every condition and asking yourself "what would the vendor think?" says Viall.

You want the seller to like you. If vendors have a choice between two similar offers, they will sometimes be swayed by the person they know really wants to live in their home. That's going to be an emotional win over an investor out for a quick flick, or an offshore buyer.

Viall's top "love to hate" is due diligence clauses.

"Make sure you do your due diligence before making the offer," he says. This means you won't have to include too many conditions in the contract. It's a seller's market and the more conditions the easier it is for the other guy to get the deal.

"If there is a due diligence clause in the contract, I would be advising my vendor that it's a major walk away. The (buyer) should have done the due diligence beforehand."

A due diligence clause in the contract says: 'I will enter into a contract, but I haven't made my mind up yet' says Viall. "It means no commitment."

The last thing a vendor wants is you to use the clause to nickel and dime them down the track. "If you're scared of missing out, leave the due diligence out," says Viall.

Every buyer needs to get a Lim. But make the Lim clause more palatable to a vendor by paying a little extra for 10-day processing. It could make your offer more attractive than the person offering 15 days, he says.

The next tip is to attach a cheque to the front of the contract. It makes you look serious. And don't be tightfisted with it. "A lot of solicitors are advising clients to only pay a deposit when you go unconditional," says Viall. That's fine in a buyers' market, but can be the factor that kills the deal in a superheated one.

Pay 10 per cent deposit if you can, or as near to this as possible. If you don't, and someone else does, your offer could be history. "Think of it as 'hurt money'," says Viall. "It makes it look like a real offer."

Be open about your financial situation, says Viall. "I can then say: 'these people have been pre-approved and mum and dad are behind them if they need it'. It makes the finance condition not sound as bad as it could be."