How Do I make an Offer on a Property?

Discussion in 'The Buying & Selling Process' started by David Thiu, 4th Nov, 2017.

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  1. David Thiu

    David Thiu Well-Known Member

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    Hey guys,

    Just wondering how I would go about with making two different offers to the Vendor.

    1) $219,000 Cash, 30 day settlement
    2) $239,000 Inclusive (of Stamp Duty and Legal Costs), Early Access to property for Improvements, 60 day settlement

    Where can I find a template letter?

    Cheers,


    David
     
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Is this in SA?

    A vendor doesnt care about your stamps or legals so forget about that bit.

    Generally the sales agents will either give you an offer form or go directly to contract.
     
    Last edited by a moderator: 5th Nov, 2017
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    The vendor doesn't care about the stamp duty that your liable to pay or your legals at these are your costs.

    Your offer should revolve around standard settlement vs shorter settlement or other terms that offer an edge.
     
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  4. Trainee

    Trainee Well-Known Member

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    Where did this come from? have you actually ever bought anything before?
     
  5. David Thiu

    David Thiu Well-Known Member

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    Thanks for the input and link. Here are some sections 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"
     
  6. Trainee

    Trainee Well-Known Member

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    What will the bank say when they find out theyre lending to pay stamp duty?
     
  7. dabbler

    dabbler Well-Known Member

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    He is prob thinking of what some developers offer ?

    You wont find many agents, solicitors or vendors of existing places will want to listen to what your suggesting.
     
  8. dabbler

    dabbler Well-Known Member

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    They wont care if it is all disclosed and val passes, but trying to get everyone on the same page, well, good luck ! .... And if it is someones IP, then no way....
     
  9. The Y-man

    The Y-man Moderator Staff Member

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    Vendor Finance people........

    The Y-man
     
  10. Trainee

    Trainee Well-Known Member

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    The op has a system but doesnt know how to make an offer?
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    More likely just reading the wrong site for information.... (unless @David Thiu is actually looking at dong VF, which is a totally different kettle of fish altogether....)

    The Y-man
     
  12. D.T.

    D.T. Specialist Property Manager Business Member

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    But he's in SA where it doesn't exist
     
  13. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    ty
    Typically, the valuer will take that into consideration and the lvr will be affected

    In the old days, it was a way where some peops would look to get their effective lvr up..........

    ra
    rolf
     
  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I actually know someone who was cash poor and stamps would have reduced his borrowing power so he did arrange for the Seller to pay his stamp duty by increasing the price.
    He did this twice. First time the valuation was fine and the bank was ok with it. Second time the bank baulked and the deal fell over.
    I would say in these WAY more stricter time (it was 5yrs ago) that it's unlikely to get approved even if the Seller did agree to it
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

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    Even if you contractually have the vendor pay the stamp duty, the purchaser is liable regardless - if the vendor shoots through overseas before settlement without paying your stamp duty, you're left high and dry and will have to stump up for it a second time.
     
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  16. MWI

    MWI Well-Known Member

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    Template letter? Create one!
     
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  17. David Thiu

    David Thiu Well-Known Member

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    Alright, well forget about making the two offer, and over complicating it with the funny terms.

    What if we just keep it simple...

    What if you were to just fill out the form that the agent provides at the back of the brochure?

    Would you guys normally put a time limit on the offer? E.g. Valid till Friday 5pm?

    Would you attach a Cheque?

    Would you have a contract pre-signed?
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    Comes back to original question - which state are you making the offer in? It varies....

    The Y-man
     
  19. D.T.

    D.T. Specialist Property Manager Business Member

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    Assume you're talking about SA in which case the answer is no. Deposit isn't payable until cooling off period finishes.
     
  20. David Thiu

    David Thiu Well-Known Member

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    Thanks for the clarification D.T.