Advice: How to make an offer

Discussion in 'The Buying & Selling Process' started by Archaon, 21st May, 2020.

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  1. Archaon

    Archaon Well-Known Member

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    Hi All,

    I've been doing some reading on previous posts about making an offer and was hoping for some opinions and clarity.

    I am hoping to offer under asking price by a fair amount (10%), and am hoping to get advice on the best way to proceed.

    Do I take the contract to my solicitor/conveyancer and have them amend the contract to the terms I wish to make an offer, sign it, with an expiration date and hand it back to the vendor/selling agent?

    Do I make an offer via Email with the price at which I would like to buy, with an expiration date? or Do I print the offer and sign it and hand a hard copy to the vendor/selling agent?

    Do I offer supporting evidence as to how I came to the price at which I have made an offer, comparable sales, comparable properties for sale, supporting documentation why my offer is lower than the asking price to persuade the vendor/selling agent of my reasoning?

    Any help would be greatly appreciated!

    Regards,
    Arc
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Is this for a NSW purchase? (different states / different rules)? If so, before you do any of that, talk to the selling agent, tell him what you are thinking of doing. Get him/her onside with the way they would prefer to see your offer presented, out of the possibilities you have outlined.Ask lots of questions so the agent is doing all the talking. Then you have someone going in to bat for you (despite the fact he/she is supposedly working for the vendor - the selling agent is really working for themselves).
     
  3. Archaon

    Archaon Well-Known Member

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    Yes NSW, should I ask the selling agent about the other properties that have come onto market that are lower than the asking price with similiar features?
     
  4. Mark F

    Mark F Well-Known Member

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    How about sounding out the selling agent and then hand over a signed contract with your offer price written in. It always helps if the offer is unconditional.
     
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  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Yes because this is evidence of your DD - so you're not seen as just another low-baller and helps condition the selling agent to your lower offer.
     
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  6. Ben20

    Ben20 Well-Known Member

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    Would the process be different in VIC?
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Yes 2 ways you could do it basically
    a) ask, will they accept $xxx and then get the contracts looked at by lawyer. Not binding until in writing and offer accepted - which could be via email so take care.

    or

    b) get the contract looked at and amended and sign with a cheque for the deposit. If the other side signs you have a binding contract.
     
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  8. Ben20

    Ben20 Well-Known Member

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    Personally, I would prefer the second option. When you say cheque for deposit, is it 10% of the offer price or token sum such as $1000? Moreover, whose name would be on the cheque, is it REA or Vendor?
     
  9. Trainee

    Trainee Well-Known Member

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    The process is different state to state. Be careful and understand the process for the state you are buying in.

    You dont have enough understanding or experience to have a 'preferred' method. Understand the differences first.
     
    Ben20 likes this.
  10. Ben20

    Ben20 Well-Known Member

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    I am trying to buy in Victoria. Could you please advise the right way to approach especially for newcomer like me?
     
  11. Trainee

    Trainee Well-Known Member

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    Understand the process and timeline for Vic. When building and pest inspections occur. What the offer process is, when it is binding, what and when deposits are due, what the agents involvement is, when conditions expire, what is the 'standard' process and what can be changed.

    And stay away from the threads for buying in other states. Don't confuse yourself.
     
    Ben20 likes this.
  12. Archaon

    Archaon Well-Known Member

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    Thanks for the help all.

    My situation at work may have changed, will find out more on Monday, things are on hold atm.