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I would check with a lawyer. I'm not sure, but I *think* they removed the requirement for pre-contract PAMDs a few months ago, and if so, then a letter of offer may form part of a binding contract in Queensland.

Drawing up clauses is not a game for amateurs; it's best to get legal advice prior to signing.

The price is where supply meets demand. It doesn't matter whether they have a guide price, offers over, up to, or near offer, auction, or any other selling method. In a hot market, you have to weigh up what price you're willing to pay. If you hear it sold for $X, and you're kicking...

Did you put a time limit on your offer?