How To Make Offer on Property?

P.S. If you are wondering about the ‘inclusive of costs’ part I read it from the Siacci System:

“The $210,000 was actually inclusive of costs, that is, it included stamp duty and legal expenses.

The law simply states that when a title transfer from one person to another that stamp duty must be paid on that transfer. What the legislation does not stipulate is who must pay the stamp duty on transfer. So what we do is insert a clause into the contract that says that the vendor will pay the stamp duty on the transaction…

This is one of the clauses that we use for this purpose in our contracts

“The Vendor agrees to reimburse the purchaser the costs of stamp duty at settlement to an amount of not more than $XXXX.00″…

As you can see you are still paying for the stamp duty and legal fees but they are now included in your bank loan rather than coming out of your pocket upfront…

For valuation purposes it is important that you do not load the contract over and above the original asking price of the house”

@terryw: I’m not ready to make an offer yet… Was just gathering information on how to proceed with the execution. I’ll probably have to contact the agent to find out more information about what the vendor’s needs are and tailor an offer to suit them. All I have is the form behind the property brochure, but it only gives you one option for offer. If I was to proceed with an offer, would attaching a cheque and date e.g. valid till 5pm Friday, be a good idea?

@pamela: I am just starting out, and have not done this before.

@richard Taylor: Doesn’t the Valuer only see the purchase price, and the front page of the contract? How would he/she know that the Vendor is reimbursing you for the cost of stamp duty and legal costs?