offer without contract - no point?

I'm looking at unit 3. The agent has given me the contract of sale for Unit 4 which recently sold. It is identical unit.

I thought an offer is invalid without a valid Section 32. If I submit an offer now (before getting the contract for unit 3), doesn't the offer mean absolutely nothing? Doesn't it work in the vendor's favour because he can now use that offer to influence other buyers?
 
I'm looking at unit 3. The agent has given me the contract of sale for Unit 4 which recently sold. It is identical unit.

I thought an offer is invalid without a valid Section 32. If I submit an offer now (before getting the contract for unit 3), doesn't the offer mean absolutely nothing? Doesn't it work in the vendor's favour because he can now use that offer to influence other buyers?

Yes, you are right.
 
I've personally never submitted a contract when making an offer and I've just bought my ninth place today.
Some agents seem to like having contracts to take to the vendor, but I prefer not signing a legally binding document unless I know that it's probably going to be accepted.
 
You can get a contract to read, but it doesn't mean that you've got to submit an offer on one!

Plus contracts have very varying usefulness in different states. You should definitely read a NSW one before making an offer, but a QLD one is essentially useless when it comes to getting information.

I do some DD, then submit an offer (or usually two or three at the same time) via email and if it's accepted put in a contract.
 
You can get a contract to read, but it doesn't mean that you've got to submit an offer on one!

Plus contracts have very varying usefulness in different states. You should definitely read a NSW one before making an offer, but a QLD one is essentially useless when it comes to getting information.

I do some DD, then submit an offer (or usually two or three at the same time) via email and if it's accepted put in a contract.

Thanks spludgey as you just answered a question I had about making an offer. I have a contract to read but was simply going to submit my offer via email
Cheers
Michael
 
Thanks spludgey as you just answered a question I had about making an offer. I have a contract to read but was simply going to submit my offer via email
Cheers
Michael

No worries mate. Just remember to include a sunset clause "This offer will expire at Friday noon unless accepted".
 
The reason to submit an offer without a contract (even if it means nothing - especially if it means nothing), is so you can submit multiple offers at once. If I could only afford 2 houses I wouldn't submit 5 contracts. However I would have no issue submitting 5 email offers or "offer form" offers.

Sometimes it takes 2 months to get an offer accepted, since vendors want good money for their sale a lot won't accept investor type offers because they are too low. I wouldn't be able to sleep at night if I had that many outstanding unexecuted contracts, a vendor could at any time sign one and force you into cooling off or other exit conditions that require processes to get out of.
 
That's a really good point.

Correct me if I'm wrong please: Let's say I wait for the contract to be ready. My solicitor reads it and says it's fine. Then I send an email offer without attaching it to the contract and could even tell the agent I have submitted multiple offers this week (to make them hurry up).
 
I wouldn't tell the agent you've submitted multiple offers, it can **** them off (some of them) and the vendors sometimes won't accept an offer if they think it will fall over. Start your first offers very low, and gradually increase the next ones until you get something accepted, that way you can balance it to not get too many accepted.

Also if you need to pull out of one, you want to say it's because due diligence failed not because you were scattering offers everywhere so don't tell them upfront, although you can say you are looking at lots of properties, so they know you have other options.

Also you can offer before the contract (although some say is not wise), and when the contract comes if it is not favourable just ask them to change it "based on solicitor advise", they usually will change it, or it is usually a "standard" contract.

Just make your offer subject to due diligence, finance, and expiring in 48 hours (or however long you give them to stew it over). Due diligence can mean review of contract, inspections, lots of stuff.
 
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