Putting in a prior offer

Discussion in 'The Buying & Selling Process' started by Younginvestor2, 12th May, 2019.

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  1. Younginvestor2

    Younginvestor2 Well-Known Member

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    We are thinking of putting in a prior offer for a property going to auction in Victoria.
    We have a few questions. Can anyone help?
    1. How do we put in a timeframe to pressure the agent to reply? My understanding is put in the dollar figure of my offer and sign the contract of sales, should I date the contract -say 2 days later so I can expect the agent to reply within 2 days?
    2. Can I also write in the contract of sales how many days settlement? Say if I want 120 days, can I write that down in the contract to be presented to the vendor?
    3.how much deposit? Is it $1000 now and if vendor accepts- 10%? Or can you nominate any figure I like as deposit say 5% and 95% at settlement?
    4. Should I offer my almost maximum offer expecting to be rejected, then my best and final offer?
    Thanks
     
    Younginvestor2, 12th May, 2019
    #1
  2. Stoffo

    Stoffo Well-Known Member

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    1, This offer is valid for 12/24/36/48 hours from 9am 13/05/2019

    2, Not likely. Just write a letter of offer, as often to get a deal over the line it will be what suits the vendor's timeline, so the contract will be filled in by the REA.

    3, This also will be a negotiated item. Expect to transfer 10% shortly after signing.

    4, Offer whatever you feel comfortable with. Just remember you can always make another offer increasing the amount.

    Unless your offer is reasonably close to what the REA has quoted the vendor will most likely let it continue to auction anyway......
     
    Stoffo, 13th May, 2019
    #2
  3. Propertunity

    Propertunity Well-Known Member

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    Propertunity, 13th May, 2019
    #3
  4. Younginvestor2

    Younginvestor2 Well-Known Member

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    Thanks stoffo
    I’m still not clear on this.
    Do I write a letter to the agent specifying my offer and time limit to respond?
    OR
    Do I put my offer price figure into the contract of sales and future date the contract- say today 13th May so I date it 16th May,so if vendor likes to accept offer, he will countersign by 16th May?
     
    Younginvestor2, 13th May, 2019
    #4
  5. Marg4000

    Marg4000 Well-Known Member

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    What’s the point in “future-dating” the contract?
    Marg
     
    Marg4000, 13th May, 2019
    #5
  6. thatbum

    thatbum Well-Known Member

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    There's no way I would ever offer before an auction unless I was very sure I could convince the agent that if the offer wasn't accepted, then I wouldn't be bidding at the auction.

    Otherwise you're just showing your cards (and possible desperation) for the auction.
     
    thatbum, 13th May, 2019
    #6