When you submit a offer for a property, besides price, settlement terms and special conditions, what is the normal format for wording the offer? Is it common to put in comparable sales or yield to justify how you arrives at your price.
Every offer I have submitted have either been in email or on the phone to the real estate agent. They have been fairly informal. I mainly state price and terms. If something is out of the ordinary (like you are offering significantly below the asking price, or if you want a vendor finance deal) then I will give reasons to justify my price and/or terms.
So you can put them in if you want, but it is not necessary. Giving comparisons only helps to justify to the real estate agent why you are making the offer so they can work out whether you are serious or whether you are wasting their time.
Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click AwayRyan McLean | On Property
http://onproperty.com.au
Email MeI just did dot points and the agent put them into the contract. ie. subject to finance and pest/building inspection, settlement period. We also asked for unrestricted access if the property becomes vacant prior to settlement. Gives you a chance to do some painting, polish boards/replace carpet etc (make sure the settlement is going to go through though)
When a selling agent puts in an offer that you request for them to draft up, he is legally and financially obligated to the seller. So even if he/she is the nicest person in the world, they should be drafting the offer in the sellers favour. To avoid being disadvantaged in your offer I would suggest:
– Consult with a lawyer who specialises in property offers.
– Educate yourself thoroughly and pre draft an offer, refine it and then keep modifying it to always be in your favour. This will take the emotion out of the offer. (Always seek professional advice.)
– Use the services of a Buyers Agent. A good BA would have used the services of a lawyer.The agent I am dealing with wants $1000 deposit and for me to sign the contract before the offer is even presented to the vendor. The deposit isn't an issue, but I have told her I will not sign a contract until 1, The vendor has accepted the offer and
2. The contract is checked by my conveyancer. The agent says that getting the contract checked waives the 3 day cooling off (Victoria), but my understanding is the cooling off is only waived when contract cheked by legal practicioner. Conveyancer, Legal Practicioner – different kettle of fish. Not that the cooling off is an issue.
At this stage I have paid the $1000 to keep the agent happy, but if the vendor doesn't accept the offer I won't waste my conveyancers time checking a contract that I'm not going to sign. Let's put the horse before the cart!
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