Making an offer

[srini]

Hi all,

I have found a property that I'd like to put an initial offer on.

I am planning to put an offer in with a specific time period in which it is valid. Also I found some good advice from evand about including reasons for the low offer compared to the asking price.

What clauses do you typically use? I have searched the forums and found the following:

- Subject to building and pest inspection reports being to purchasers' satisfaction
- Subject to finance approval to purchasers' satisfaction
- Permission to access the property to show potential tenants and tradespersons through
- Any agreed works the agent has stated the Vendor will complete is included

Thanks
Srini

 

[srini]

Please ignore. I did more digging and found this post http://somersoft.com/forums/showpost.php?p=369013&postcount=7

My offer will look like below...

Letter of Offer

Property Details:

Agency:

Purchasers Name: (insert full name) & others as later nominated

Address:

Phone:

Offer Price: $**** Offer expires on (insert full date) at (insert time)

Other Conditions of Offer:
Deposit $500 payable after 7 days of acceptance
Subject to purchasers' satisfactory Building Inspection within 7 business days
Subject to purchasers' satisfactory Pesticide Inspection within 7 business days
Subject to independant valuation within 7 business days to purchasers' satisfaction
Settlement 30 days after all conditions have been met
Subject to purchasers' satisfactory survey report within 7 business days
Subject to purchasers' due diligence with local council within 3 business days
Subject to purchasers' property manager haveing access to the property prior to settlement for the purposes of inspection and/or listing the property to tenancy and/or showing prospective tenants through the property
The property is of risk to the vendor until such time as settlement has been effective


Signed:___________________________

Name:

Date:

Thanks

 

[Truly Exotic]

with that many conditions, I certainly hope your offer is very good for the vendor or there is absolute zero interest in it

 

[strongy1986]

Srini

I'm not sure that they are good reasons to put in an offer
Below asking price, as you stated above.

I would think your offer would be very uncompetitive in a competitive market

Take out the part about the valuation - work it out yourself

The $500 dollar deposit is also a ball breaker,

If you were the seller would you accept the offer with a 10% deposit or one like yours with a .0125% deposit

 

[srini]

Both fair points.

Thanks guys. I'll offer 10% or 15% deposit and remove the valuation condition. I already know that offer price will be same as or lower than valuation.

Thanks a lot. Are there any other conditions that look un-reasonable from vendor's viewpoint?

 

[Joel]

Not really positioned to comment on conditions with my limited experience but I noted that in your letter you don't have a subject to finance clause. Not sure if you intend on doing a cash purchase.

Joel

 

[Aaron_C]

Lol if I was the vendor I'd tell you to go jump. Quickly.

 

[Melbournian]

rather than waste your time to put in a written offer like that only to thrown in the bin and laughed at with so many conditions, just speak to the agent first and see if the price is what they will accept and if they are wiling on a verbal proceed with a written offer.

 

[Jamie M]

I agree with Aaron.

Also, some of those conditions are similar and could be rolled into the one (such as finance and valuation, building and pest inspection).

It all looks very daunting from the vendors perspective.

Cheers

Jamie

 

[oc1]

Unless the vendor is a wheeler and dealer the offer will have no hope getting up no matter what the price is. Keep it simple. You should always get info from the agent regarding the vendors situation before making an offer. That way you can ''massage'' an offer that suits both parties.

Cheers
Oscar

 

[srini]

Thanks for all your valuable advise. The forum is great - you get brutal honesty - exactly what I was looking for.

Met the agent at the property today and spoke to him as suggested.

I'll simplify to just include B+P and early access (which he doesn't think will be an issue). I will do the council DD prior to putting an offer.

Conditions:
Deposit of 15% payable within 7 days of acceptance
Subject to purchasers' satisfactory Survey report and/or Building and/or Pesticide Inspection report within 7 business days
Settlement 60 days after all conditions have been met
Subject to purchasers' property manager having access to the property prior to settlement for the purposes of inspection and/or listing the property to tenancy and/or showing prospective tenants through the property
The property is of risk to the vendor until such time as settlement has been effective

 

[redwing]

I recall reading a NZ clause some time ago stating, "subject to due diligence", just about covers it all