Help with putting an offer in for the first time

Discussion in 'The Buying & Selling Process' started by bne123, 14th Jul, 2019.

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  1. bne123

    bne123 Member

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    Hi guys, I am looking into buying my first PPOR and have found a house that I would like to put an offer in. I have been looking into the market for about a year and I know it doesn't mean a lot but I have organised a pre-approval.

    The agent has sent me an email asking for information to draft the contract.

    3. Subject to Finance ( how long ) - do people normally put down about 14-21 days? Should I also put in subject to buyer's satisfaction in case I do not get satisfactory rates from the bank?
    4 Subject to Building and pest ( how long ) - does this mean how many days I need to organise it?
    5. Deposit ( small deposit one business day from contract date, how much )
    6. Balance deposit ( when finance is approved )
    7. Settlement date - not sure what to put here either

    Should subject to satisfactory valuation be included in the offer as well? I was only slowly looking into entering the market so haven't organised a solicitor yet, should I have a solicitor before making an offer?

    Any advice would be much appreciated!
     
  2. Dan Wood

    Dan Wood Well-Known Member

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    3. Ask your bank/broker, 21 could be fine with pre approval.
    4. 2 weeks is normal, this is from the point of both signing the contract.
    5. Normally it's 5-10%? Ask the agent.
    6. Ask the agent.
    7. Settlement 30 days.

    To look more lucrative, people lower these numbers for a quicker settlement.
     
  3. bne123

    bne123 Member

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    Thanks Dan!

    If my offer gets accepted, would it be legally binding? Or it's not legal until I sign the contract?
     
  4. Trainee

    Trainee Well-Known Member

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    Are you concerned that you wont get the property, or concerned that you have to buy it?

    If you have been looking in specific areas, a loan person, solicitor and an inspector should be on speedial.
     
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  5. Dan Wood

    Dan Wood Well-Known Member

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    Not until both parties sign the contract iirc.
     
  6. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    3. I put 21 or 28 days. If you don't have a broker yet it can take the full 28 days but don't put 14.
    4. You should be able to organise a B&P within 5 working days - which means have the inspection, get the report and decide within 5 working days. If you want to use normal days then 7. Again best to talk to local inspectors to see how much lead they need
    5. Deposit - we don't have 2 deposits here in WA but I imagine $1k would be enough
    6. Balance deposit the remainder up to the amount agreed which might be $15/20k but I doubt much more than that?
    7. make sure you use terms such as "28 days from finance approval" not a number of days from acceptance. If finance is extended then you want the settlement to be extended. You probably only need 14 days but that is the very minimum especially if the bank is sending you paperwork via snail mail that needs to be returned same way. Use 21 days or if you are seeking longer than 28

    Yes you should have a solicitor so that they can help you with what you wish to put on the contract and how to word it correctly so that it's in your best interest.
     
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  7. The Y-man

    The Y-man Moderator Staff Member

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    Partially depends on the stae in which you are buying the property.

    In Victoria,

    3. Subject to finance - 2 weeks is usually what we see in offers - although this would depend on how hot/cold the market was for that property. If the property had been on the market for 3 months, then 21 days might be perfectly ok. Be guided by your mortgage professional.

    4. B&P - can usually be done within a week - or days if need be. You might as well match it to the finance clause.

    5. In Vic, we usually do a 10% deposit with the offer to show we are serious.

    7. We usually ask what the vendor wants for settlement date. Obviously if the desired settlement date is short than what you can get the finance approved in, then it's a no go.

    The Y-man
     
  8. bne123

    bne123 Member

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    Thanks for all the advice!

    I am in QLD and not sure what the norm is with the deposit so probably will have to check with the agent.

    In terms of subject to finance and building/pest, what's your thoughts on adding 'to my satisfaction'? Is that unnecessary?
     
  9. Dan Wood

    Dan Wood Well-Known Member

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    I think it's unnecessary, QLD you're covered and can back out at Finance or if you're not happy with the building and pest.

    You literally have to tell your solicitor that you were happy with the report and want to continue, so technically it is to your satisfaction... or you can back out and forfeit deposit (I think, I never asked that question).
     
  10. bne123

    bne123 Member

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    Cheers for the info :)

    I submitted my offer this morning. The agent has drafted the contract and asked me to sign and send it as they will be making the decision tomorrow. I'm not sure about signing anything until my offer is accepted as I do not have a solicitor yet.

    Is this common for the agents to ask you to sign before the offer is accepted? It is a multiple offer and the form is attached to the contract to indicate that, does this make a difference?
     
  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    This would be normal in my state - we only have contracts and use them for offers and sign our offer/contract. Them sigining the offer/contract is their acceptance and time starts then.
    Why don't you have a solicitor yet? You should get them to check it before you submit it.
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    Same in Victoria - offer is made on a contract. When vendor countersigns, game is on.

    The Y-man
     
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  13. David Shih

    David Shih Mortgage Broker Business Member

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    Yes a multiple offer form is typical assuming you are purchasing in QLD and letting you know you are not the only one who is putting offers on table. So seller will then make a decision based on comparing each of the offer price & conditions.

    A lot of the questions you have comes down to engaging a solicitor/conveyancer early in the piece. We normally recommend our clients to engage a conveyancer to understand the process and implications before signing on the dotted line. Also they can assist you in drafting up any special condition clauses for the contract (such as early access for getting quotes etc) that meet your requirements.

    Here's our recent podcast episode with an excellent conveyancer in QLD - might be too late for you on since you already put an offer in but hope it still helps for your future purchases!
    https://sparkyourfire.podbean.com/e...ance-of-conveyancer-and-when-to-involve-them/

    Cheers,
    David