Time Frame on Offer & Acceptance

[cad]

What do you think is a reasonable time frame to leave an offer on the table?
I recently made an offer on a property, subject to the sale of another.
I believe that I have now become a pawn in the real estate game as they are using my offer to entice higher offers.

Should I give a dead line for an answer before withdrawing my offer?

Your thoughts would be appreciated.

Regards Cad

 

[Joe D]

Cad

I normally discuss a realistic time frame with the agent when writing up an offer. This is never more than 24-48 hours unless vendor is overseas.

In all cases I have always had a reponse either negative, positive or a counter-offer well before the deadline.

As an investor you need to know your position promptly so you can make offers on alternative properties.

Remember also you can always make a second offer (higher or lower) with different terms (eg settlement period).

In your case I would advise the agent that offer is retracted unless a response received by 6.00pm etc etc..

Good luck.

Joe D

 

[Jas]

Whatever you set, you need to stick to your guns. Propertiers come and go, but you need to show the real estate agents you mean what you say. Otherwise, you'll get grief from them as they ignore your deadlines time after time.

Jas

 

[asy]

Hiya Cad,

We now allow 72 hours, and I have had my solicitor draw up a clause for me that allows us to void the contract if we don't have a signed contract by then.

The other thing we are now insisting on is signed counter offers.

If we make an offer on the contract (as is the norm in QLD) we insist that the vendor's counter offer is made on the contract and signed, that way if we like it we will initial his changes and away we go. Stops the vendor coming back later and wanting more.

hope this helps, if you like the idea, give your solicitor a call and have them word a clause for you, it shouldn't cost you, assuming you have them do the conveyancing.

asy

 

[Joe D]

Asy

It is standard practice in WA that any counter offers or counter-counter offers are initialled by both parties on the offer and acceptance form.

Or at least it has been in all my property dealings.

Regards
Joe D

 

[asy]

Hiya Joe.

When I first started working in RE, we used to do all offers verbally, going from one to the other, then back and forth until there was an agreement, and we used to write them all on a piece of paper in the file so we'd remember what we were up to.

Things were changing when I was last working in Vic, and a lot of offers were starting to be done on contracts, whereas here in QLD that's the norm.

I think it's a good idea to do it this way, as that way everyone knows what has and hasn't been agreed to.

asy

 

[cad]

Update on events

I rang this morning and said that I was withdrawing my offer at 4pm this afternoon if I had no response by then, agent informed me that they where negotiating with an offer that came in after mine but was more appealing & if that didn’t work out then they would negotiate with me & that by law they can only deal with one offer at a time.

I would understand this if I was the vendor but seeing as though I am the purchaser, I don’t like being the bait.

Thanks Jas, I am standing my ground on the 4pm deadline.

By the way, Joe D was right all counter or counter, counter offers are made on the contract & initialed by both parties.

Just so you know I’m defiantly not emotional about this offer as it is an investment and I know there’s another one waiting for me somewhere…… I just have to find it.

Thanks every one, I appreciate your comments & will let you know how everything pans out.

Regards cad

 

[asy]

Originally posted by cad
I rang this morning and said that I was withdrawing my offer at 4pm this afternoon if I had no response by then, agent informed me that they where negotiating with an offer that came in after mine but was more appealing & if that didn’t work out then they would negotiate with me & that by law they can only deal with one offer at a time.and I know there’s another one waiting for me somewhere…

Um...

If they can only deal with one offer at a time...

And yours came in first...

then

WHY AREN'T THEY DEALING WITH YOU???

I am a little confused by this.

I don't know what the legislation is in WA, but here in QLD if we have two offers, we must, by law, present both offers to the vendor and let them decide.

Your situation seems odd...

asy

 

[cad]

Hi Asy,

I believe that they presented both offers to the vendor but they have not done any thing about mine because they are negotiating on the other offer.

Anyhow, 4pm has come & gone and no word not even a rejection, not even a phone call from the agent to acknowledge my deadline.
So my next question is.......What's stopping the vendor accepting my offer in 3 weeks time?
Do I need to get the original contract back?

Cheers cad

 

[Jas]

I'd leave it. If they aren't bothering to update you...

If they do call back, just say your deadline has passed and you have moved on.

Jas

 

[kierank]

This happened to me last month.

After verbally advising the RE that I would withdraw my offer by the deadline, I confirmed via email that my offer was withdrawn once the deadline had passed.

I don't know how legally binding this is but the property has now been sold for more than I was prepared to pay.

 

[cad]

Thanks Guys,

Was wondering though from a legal perspective, how would this go?

We say offer is withdrawn, then vendor signs offer & acceptance some time later after, deadline has passed.

Can any one shed some light?

Regards cad

 

[Elysium-M]

Hey Cad,

You definitely need to communicate withdrawal of your offer to the agent! In practice, if you just leave it alone, you'll probably never hear about it again. But this will mean that the seller could technically accept your offer in 3 weeks' time, as you say, and it will be in all likelihood binding on you.

You can communicate withdrawal over the phone, but it's always best to do so in writing (ie fax, letter or e-mail). That way, you've got written proof that you've told the agent that you've withdrawn the offer.

What the agent told you about only being able to negotiate one offer at a time seems to be bull. I've never heard of any law like that in WA. From what I understand, the agent must present all offers to the seller.

I've found that it's also helpful to put a tight deadline on your offer - it'll force the seller to deal with it quickly - either yes or no, so that you don't waste your time waiting in vain, and can get on with looking for another property if it doesn't work out.

 

[asy]

Hiya Cad,

I agree totally with Elysium, You need to write to the agent and tell them that you withdraw the offer, otherwise the vendor is within their rights to come back and sign your offer in a month or two, when you may have found something else, and the finance will be hell.

Write it now and send it in.

If you want to you can give them a time at which the contract will be withdrawn.

hope this helps,

asy

 

[cad]

Thanks everyone,

I was advised today that the vendor has accepted the other offer, so my concerns can be laid to rest.

In future I will make sure all my offers have a 72 hour clause.

Your replies where much appreciated.

Regards cad

 

[phm]

Hi Cad

Something similar happened to us. Our solicitor advised me to contact the agent and get a cancelled copy of the contract sent out to us, which I did. I know there's more than one copy, but at least I had one. The agents weren't real keen, but did it.

Gives you peace of mind.