Letter of Offer

Viewing 10 posts - 1 through 10 (of 10 total)

Coota
Participant
@coota
Join Date: 2012
Post Count: 49
January 27, 2013 - 5:03 am
Have emailed a letter of offer to an agent for x dollars which is valid until 5pm Jan 30th,true to form agent has come back with reply below
We will need to provide your offer to the vendors for their consideration as it is below asking price.
In order for your offer to be given the very best chance of acceptance we suggest presenting it in a signed contract of sale accompanied by a cheque.
Now am I correct that this would only give me a 3 day cooling off period once this has been signed?
I was thinking of offering say a $2,000 holding deposit until building inspection,finance approval and bank valuation has been completed as I don't want to go unconditional until this has been all completed which of course will take longer than the 3 day cooling off period.
Am I on the right track?
Appreciate any feedback
Michael
RPI
Participant
@rpi
Join Date: 2012
Post Count: 308
January 27, 2013 - 8:49 am
Hi Michael
Which state. There are very different systems in each.
Regards
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone Me
Property Lawyer & Town Planner
Jacqui Middleton
Participant
@jacm
Join Date: 2009
Post Count: 2,539
January 27, 2013 - 9:08 am
Wow a $2000 holding deposit is very generous. $500 would be more than ample.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone Me
VIC Buyers' Agents for investors, home buyers & SMSFs.
jmsrachel
Participant
@jmsrachel
Join Date: 2012
Post Count: 711
January 27, 2013 - 9:17 am
They do it to me all the time! I tell them to get stuffed, If i wasn't serious in purchasing the property i wouldn't be wasting my time making an offer.
Coota
Participant
@coota
Join Date: 2012
Post Count: 49
January 27, 2013 - 9:38 am
Sorry all property is in Melbourne
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
January 27, 2013 - 11:07 am
Michael yes you are on the right track.
Get your broker to order the valuation up front and then at least you can see whether your offer is within the ball park.
We did one for a Melbourne forum client last Wednesday which came in at $385,000 and the client offered $365,000 and had the contract accepted.
Admitedly the valuers report will now be changed to reflect the lower purchase price but the buyers knows he has inbuilt equity from day 1.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
jmsrachel
Participant
@jmsrachel
Join Date: 2012
Post Count: 711
January 27, 2013 - 11:15 am
Richard, just out of interest why would the valuers report be changed to the lower price?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 27, 2013 - 11:24 am
Coota wrote:
Have emailed a letter of offer to an agent for x dollars which is valid until 5pm Jan 30th,true to form agent has come back with reply below
We will need to provide your offer to the vendors for their consideration as it is below asking price.
In order for your offer to be given the very best chance of acceptance we suggest presenting it in a signed contract of sale accompanied by a cheque.
Now am I correct that this would only give me a 3 day cooling off period once this has been signed?
I was thinking of offering say a $2,000 holding deposit until building inspection,finance approval and bank valuation has been completed as I don't want to go unconditional until this has been all completed which of course will take longer than the 3 day cooling off period.
Am I on the right track?
Appreciate any feedback
Michael
This is a vague offer as all the terms are not included. An agreement to agree maybe.
Having a proper signed contract submitted would make it a serious offer – but if accepted you would be locked in to a contract so seek advice.
You can also agree on many htings such as extending the cooling off period or having it subject to finance. Get your lawyer to add some clauses before you make your offer.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
wilko1
Participant
@wilko1
Join Date: 2010
Post Count: 510
January 27, 2013 - 1:40 pm
jmsrachel wrote:
Richard, just out of interest why would the valuers report be changed to the lower price?
The bank would go with the contract price and not valuers valuation. He could of bought extremely undervalue say paid 300k for a house that gets valued at 400k. The bank would go that is nice heres your loan for 300k.
But if he knew he bought undervalued he might be able to wait a few months, not sure what the minimum is 3 months, 6 months time even 1 year and go refinance with another bank. New bank would value at 400k and he could refinance out his own equity if he wanted to.
Coota
Participant
@coota
Join Date: 2012
Post Count: 49
January 27, 2013 - 11:10 pm
Terry for the purpose of the post I didn't put in all the detail that I included in my Letter of Offer to the agent which of course included-finance approval,building inspection,bank valuation,settlement of 30 days and offer expiry of 2 business days.
As has been mentioned in this post its just frustrating that agents think you can be bullied into signing a contract and that the offer is close to vendors asking price also so the agent can see I am making a very genuine offer
Michael