All Topics / Help Needed! / putting an offer on a property in writing

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  • Profile photo of blockablocka
    Participant
    @blocka
    Join Date: 2010
    Post Count: 38

    hello peeps
    can someone help me out with putting an offer in writng with subject to …..  maybe a sample letter

    thanks jas

    Profile photo of dtrumpdtrump
    Participant
    @dtrump
    Join Date: 2010
    Post Count: 50

    Are you looking to make an offer? Or have you agreed price and are now putting it into the contract?

    I recently purchased and for each property I put an offer on I went down the path sending the agent an attached letter with my price and conditions. Although this was good to communicate from the get-go what my conditions were… at the end of the day the offer isn't the final contract….so it can get a bit time consuming and with all the negotiation back and foward you dont want to be updating your 'offer letter' each time.

    In the end i found a short and simple email to the agent was most efficient (and add a setence or two to try draw some urgency/or jusitify your price against others on the market, etc). It can go something along the lines:

    "Hi Agent, I would be prepared to go to $300,000 with 21 days Finance Approval and 14 days B/P.  I am seeing another property this weekend that I would like to put an offer down on so could you please get back to me asap on phone ###."

    If your offer is within 'ballpark' the agent will be on the phone to you in the next 24 hours asking you to draft it onto the contract…at which point they can just use the contract template as the 'back and forward' document updating the price and conditions with the seller…etc

    Did you have speciifc terms you wanted to put down? Shoot me a PM happy to email you a couple of my offer letters.

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    <Here's one I got off another forum. It didn't format properly but you can set it out yourself.

    insert full name>

    <insert address 1>

    <insert address 2>

     

    Mobile: 

    Email:

      Facsimile Transmission

     

    To:

     

    From:

     

    Company:

     

    B/H Phone:

     

    Fax:

     

    B/H Fax:

     

    Date:

     

    Pages:

     

     

    Letter of Offer

     

     

    Property Details:

     

     

     

     

     

    Agency:

     

     

     

    Purcahsers Name:

    (insert full name) & others as later nominated

    Address:

     

     

     

    Phone:

     

     

     

    Offer Price:

    $

     

    Offer expires on (insert full date) at (insert time)

     

     

    Other Conditions of Offer:

    Deposit $<insert amount> payable after 7 days of acceptance

     

    Subject to my satisfactory Building Inspection within 7 days

     

    Subject to my satisfactory Pesticide Inspection within 7 days

     

    Subject to my finance within 21 days

     

    Settlement <insert number> weeks after all conditions have been met

     

    Subject to my satisfactory survey report within 7 days

    Subject to my due diligence with local council within 3 days

     

     

     

    Date:

     

    Name:

     

     

     

     

     

     

     

    Signed

     

     

     

     

     

     

     

     

    Profile photo of DHCPDHCP
    Member
    @dhcp
    Join Date: 2010
    Post Count: 190

    Just a couple of questions on this " letter of offer", if I may:

    Is it necessary to put below in the "Subject To" clause? I'm sure this is part of your research prior to making an offer?

     * Subject to my due diligence with local council within 7 days

    What does the below entails?

     *Subject to my satisfactory survey report within 7 days

    Profile photo of xdrewxdrew
    Participant
    @xdrew
    Join Date: 2010
    Post Count: 479

    All these clauses are there to give you time to legally go OOPS and withdraw from the contract legitimately. It however DOES mean that you need to READ them before you start hopping into a signing session. As you might guess .. the more 'subject to' clauses you have in an offer .. the more wary the vendor is at the possiblity of the whole sale not happening. If you are the only offer thats ok, but if there is multiple offers at the same price, an unconditional offer looks a lot more appealing to a vendor.

    Like all things .. if you ever get presented with a pile of paper instead of a one-sheet .. READ what you are getting. I find that the number of people who just plough into a contract 'because the sales agent was so friendly' and then work out what they bought is too many .. and too often. For instance .. the most common 'forgotten' clause .. is on land in an up and coming estate. The one that says you gotta start building in 6 months at least.

    Profile photo of DHCPDHCP
    Member
    @dhcp
    Join Date: 2010
    Post Count: 190

    thanks for the clarification xdrew.

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