Your guide to making an offer

You’ve finally found the home you’d like to buy. Now the big question is, how much should you offer? Before you can answer that there are three things you need to be clear about.

1. How much can you afford to borrow?

A Nectar broker can calculate how much you can afford to borrow based on your earnings and lifestyle, and will work with multiple lenders to find the loan that’s right for you. They can also help you get a pre-approved loan, which means you can act quickly when you find a property you want to pursue.

2. How much is the property worth?

There are a number of ways to find out what the property is roughly worth. Get friendly with a couple of local real estate agents, talk to people who live in the area or who have been trying to buy there, and go to some local auctions to get a feel for the market. The local council website is also a great way to find out more about the area and the property.

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3. How much are you willing to pay to make sure YOU own this home?

How much you’re prepared to pay for the property might not be the same as what you think it’s ‘worth’.

For example, you might put a higher value on a property because of its school zones or proximity to work, local transport, or family. You might see potential in the house, but know that you’ll need to allow money for renovations to make it work for you.

Whatever the case, make sure you have a realistic figure in mind.

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4. Can you afford to stretch yourself a little bit further?

The difference between owning the property of your dreams and seeing someone else own it could come down to as little as $5 a week.

Being prepared to pay that little extra could make all the difference if you find yourself in a competitive situation, or if you’re buying a property that will require some renovating, to make it work for you.

The question is, just how far?

When you’re under pressure, it’s easier to make the right decision if you know exactly what it means in terms of weekly repayments.

This table shows you what happens to your repayments if you increase your offer by up to $25,000.

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Offer increase Weekly repayment
$1,000 $1.34
$2,000 $2.69
$3,000 $3.82
$4,000 $5.38
$5,000 $6.73
$6,000 $8.07
$7,000 $9.42
$8,000 $10.76
$9,000 $12.11
$10,000 $13.46
$15,000 $20.19
$20,000 $26.91
$25,000 $33.64


These figures are approximate figures only. Calculations are based on a loan of $325,000 over 30 years, with an interest rate of 5.75% per annum. Assumes interest rate is constant during the life of the loan. It excludes any additional fees e.g. early repayment fees or draw down fees. Some bank fees and charges may apply.

Work out the right offer for you.
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