Making offers



From: Paul _

Hi everybody,

All the reading that I have done seems to say that I should be out there in the market putting in plenty of offers. How does everybody handle this. Are all these offers in writing or just verbal. If they are in writing, is it just by a letter/fax written by yourself, or are all offers on the appropriate REI forms. (this is how most agents I've spoken to would like them)

And at what point do you provide a deposit to show that you are serious. Is it with this written offer, or with the appropriate REI forms when the vendor has accepted your offer & you are now signing contracts.

By the way I'm in QLD if it makes a difference to state rulings

Thanks, Paul
Last edited by a moderator:
Reply: 1
From: Mr S

Hi Paul,

I am only new at buying IP's but I have found it less stressfull than buying to live in. This I guess is due to being more relaxed and not buying with emotions but rather buying with cold hard figures.

Anyway so far I have operated in this manner and I dont intend to change... After all if the agent was to do the dirty on me then he would do the dirty on anyone and would probably find he would be out of business soon due to many dis-satisfied customers.

My game plan is a follows.

I co-ordinate everything with my lender first including current property holding valuations to insure all is green for go.

I then co-ordinate my solicitor to get the ball rolling regarding building / pest inspections.

I pay nobody anything except the deposit bond fee. I use deposit bonds and borrow enough to cover legal costs and bank fees.

Anyway basically I go shopping for a property until I find what I'm after.

I make offers that are very low and sometimes provide this offer in writing that has a used by valid for 48hours or something like that.

The agent then does his work and usually tries to scare you with ... I have another customer sniffing around etc. I dont care about this because my finances are green light and completely ready.

Anyway if I secure the property the agent then usually wants some sort of a deposit... I dont give him a thing... not even a $500.00 holding deposit. I just re-state that all is ready to go.

Anyway my solicitor then handles the rest which takes about 2 weeks (A cooling off period for me without being commited.) Anyway we exchange with a deposit bond and then I get the tenants organised and settle.

Actual payout be me is the Deposit Bond Fee, The Quantity Surveyor Report, and Insurance. Less than $1000.00 in total.

Now sure the agent could guzump me... his choice... but he risks losing 2 sales if the other party cannot proceed... and so far so good for me... As I said If it was emotions running the show... I'd be depositing and securing like mad... but I dont think like that anymore.

Cheers - Martin
Last edited by a moderator:
Reply: 1.1
From: Paul _

Hi Martin,
Thanks for the great reply. You certainly have your game plan well laid out. It gives me plenty of inspiration to work with.

Cheers Paul
Last edited by a moderator: