I'm about to make an offer on my firs IP and would like a bit of advice with putting in a written offer please. Is there a standard letter of offer somewhere that I can download and fill in the blanks? If not what details should I include?
Very new to this and don't want to get it wrong. Thanks.
NonnieI think RE Agents have a standard form to fill in. I purchased the Buyer Beware product 5 yrs or so ago and have used that offer template a few times.
That is not available again yet. Usually you include a 'subject to clause finance' or some other ;get out' clause and a sun set clause for the agent to accept the offer by a set time and date. This can cause the agent to act quickly on the offer if you think there might be competition.
If still unclear your solicitor or conveyancing person should know. Often it's just a verbal exchange of negotiations until you agree and then get in to sign the official contract.
NonnieE
Also, suggest you let the seller know you like the house, would love to keep it in good condition etc etc. In other words , let the seller think you like what they have done and they will think favourable of you. But not too much suck up.
If you have finance already availble then let them know, if you have a large deposit then let them know, just tell them all the things they want to hear.
But , also beware , as this is your first investment property offer, don't let the real estate agent push you around, give him your best offer and stick to it, let him know you are interested but not fixated with getting it. There is always another house around the corner. And make sure you are buying for the profit, not to loose money, I hope you have done your sums, we are in a falling market. There is a long way to go before we get to the bottom.
Good luck.
Thanks for the advice guys, I really appreciate it!
Nonnie
Do not worry about that anymore…
There is no demand so you are going to be the only one offering something, so at the end is how much you are prepared to lose with your offer…
50K to 100K off the asking price for properties under 1M is the rule now.
Clonesspam
Well I just missed out on a property yesterday because someone had bet me to it that morning, didn't even get to put in my offer! So there was demand for that one at least.
Oh bugger. Don't worry there will be another one and you will be better prepared. The good thing is you are in the game taking action.
I seen a big add in the weekend paper saying 100k discount on 550k listed property to 450k.
Wow that's a big discount, a little out of my range though. Starting off fairly small and I plan to work my way up. I guess you've got to forget about the ones you miss out on, learn by it and move on to the next one.
Yep look there's lots of properties l've been involved in submitting offers and or negotiating not been able to buy and or something happens. You learn something every time and you get more relaxed at the process.
I just gave that discount as an example of some of the things that are happening in the market (that might be little extreme). I'm on a much lower budget as well. But there is discounts in any budget at the moment.
Jaffasoft wrote:I think RE Agents have a standard form to fill in. I purchased the Buyer Beware product 5 yrs or so ago and have used that offer template a few times.That is not available again yet. Usually you include a 'subject to clause finance' or some other ;get out' clause and a sun set clause for the agent to accept the offer by a set time and date. This can cause the agent to act quickly on the offer if you think there might be competition.
Does anyone know how I can get my hands on the Buyer Beware Letter Of Offer template? I have tried to purchase it but it is not available, and based on the above post it seems it hasn't been available since January!!
Alternatively, does anyone have an example template they can forward?
The offer layout in my opinion is not important at all.
Just email the vendor or real estate agent your offer something like…..
"I Nonnie E would like to offer the owner of <address> the sum of <$> for the purchase of that property."
If you are serious about it and know you can get finance ask for a copy of the contract and take it to your solicitor/conveyancer and sign it. (Cation: 5 day cooling off period may be void if you take the contract to your solicitor before signing) Of course with finance and or inspection clauses as needed. If you sign it without legal advise (in my state at least) you get 5 days to pull out of the contract without needing any reason at all, giving you time to seek legal advise.
A signed contract in front of a seller is mighty tempting and the conditions can be changed if need be to get the deal over the line.
If you are not comfortable with this just make an offer on a scrap of paper / email until the seller wants to sign contracts. You can lose sales though if the competition is strong.
Most important to have your finances ready.
obie…
Just give a verbal offer. If accepted you can then sign a formal contract with some clauses such as subject to finance etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Agent says that letter offers out here are rare (in the bush). I bought the only and last two deals with offers over the phone!
Jaffasoft wrote:I think RE Agents have a standard form to fill in. I purchased the Buyer Beware product 5 yrs or so ago and have used that offer template a few times.That is not available again yet. Usually you include a 'subject to clause finance' or some other ;get out' clause and a sun set clause for the agent to accept the offer by a set time and date. This can cause the agent to act quickly on the offer if you think there might be competition.
If still unclear your solicitor or conveyancing person should know. Often it's just a verbal exchange of negotiations until you agree and then get in to sign the official contract.
Just curious, does the services for conveyancing includes the solicitor looking through the offer letter? I am based in Brissy.
The offer forms used are
– PAMD Form 30C – Warning Statement
– Proposed contract
– PAMD 27c – signed by agent
– Buyers AcknowledgementWJ Hooker wrote:If you have finance already availble then let them know, if you have a large deposit then let them know, just tell them all the things they want to hear.Why are they keen to know you have a large deposit? Is it just because it means you’re unlikely to have financing turned down or do they get access to the deposit quicker or something?
This can vary from State to State.
If you are merely at looking to put in an verbal offer then phone the selling agent with your price, terms and conditions and let him take it to the Vendor. Alternatively get your Solicitor / Agent to draw up the terms of offer for you.
In certain State (Qld for example) you are better of to proceed to Contract with the usual conditions (such as subject to pest inspection, building report etc) and see what they vendor has to say.
As long as you always have an out you cant go too far wrong but still care needed.
Richard Taylor | Australia's leading private lender
Hi Guys,
I am a real estate agent in Sydney. Lucky for all of us (Property Investors) more than 50% of all real estate agents DONT know how to negotiate. In most situations you can knock up to $20k off the asking price by asking a few simple questions such as:
How long has the property been OTM?
Why are the owners selling?
How did you come up with this ‘asking’ price?
I believe the best question you can ask the agent is “seriously, what will the owners take?” most agents will buckle and tell you a lower price than the asking price instead of defending the sellers asking price.
Another good way to get more money off when buying a property is to get an offer accepted after negotiation with a 5 day cooling off period. Once the owners have accepted your offer and the property is now yours subject to your Pest/Building report coming good the ball is in your court. Now is a great time to try to get more money off the property by using the Building/Pest Report to your advantage. There will always be pointless wear & tear come up in the report, you can tell the agent this all adds up and you want some money off the agreed price to fix the problems or you don’t think you can go ahead. Using this method on incompetent agents I have seen some owners take off up to $10k to ‘meet the buyers half way’
For help when buying or selling visit http://www.jenman.com.au
I hope this helps goodluck!
Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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