Written offers only in Q'land

[see_change]

While it was often recommended on the forum to submit a signed contract with a deposit attached , we bought 15 IP's in q'land in early 2000's without ever submitting a signed contract as an offer . Always negotiated a price verbally and then signed the contract .

Currently we find that the agents we're dealing with want a signed contract before they will forward an offer .

We're not buying in a segment where we're competing with multiple bidders. I can understand when you've got multiple bidders why you would do this .

Is this now standard practice in q'land.

Cliff

 

[wylie]

I have always done this. I don't know anybody who has done differently. I'm surprised you bought so many without going directly to contract.

 

[see_change]

Given the main place I'd heard about it was from investment oriented sites where it was suggested as a negotiating tactic , I wasn't sure how widespread it was . I found we never had to use it ,but , we've never bought in a hot market and in those situations the agents seemed happy with any offer

Cliff

 

[Kinnon Bell]

In my experience I found it to be about 50/50 in QLD - some agents were happy to verbally negotiate a price and once settled sign the contract and some would on accept an offer on a signed contract.

 

[redwing]

Verbal negotiations aren't worth the paper they're written only (especially if there's no witnesses)

 

[citystar]

Verbal offer in QLD means nothing. Half of the deals I've done have involved verbal negotiations before putting ink on paper, the other half were paper contracts from the beginning with the price crossed out and counter signed until we reached an agreement. Some real estate agents will dutch auction your signed contract as competition to interested parties for last minute price increase before sending it to the vendor much to all buyers distaste.

 

[Brett R]

I think it depends on the situation (and the agent). If a buyer wants to put in an offer that I know will never be accepted by the seller, I might suggest to the buyer that the offer is submitted verbally. If I feel the buyer is a bit more serious and the offer is closer to the sellers expectations, then I'd probably draw up a contract and negotiate backwards and forwards.

Some buyers and sellers prefer to negotiate verbally all the way then sign a contract at the end and then sometimes both parties want everything in writing right from the start.

 

[jokerjoe]

I have been pondering this myself as I would like to make a few offers in SE Qld but am not sure of the best strategy.

Basically, I am in no rush to buy and would like to make a few low offers to test the market. On previous purchases I have negotiated verbally at close to what the vendors were seeking, then signed a contract when a sale looked likely.

I feel a better strategy with low offers would be to provide the agent with a signed contract from me with the details of the property pre-filled (title/lot/address etc). I also would NOT have subject to finance to make it more attractive.

My thoughts are that this would show that even though I am "bottom fishing" in a sense, I am still prepared to put my money where my mouth is and that for a sale to go through all the vendor would have to do is sign it.

This is in a quiet market. I would be interested in how other people approach this and whether this technique is valid and/or the norm? In a nutshell can I draw up a contract and email/fax it to the agent instead of the other way around?

 

[wylie]

As a vendor, I wouldn't enter into any verbal negotiations with an agent. I'd expect a contract to be brought over with the purchaser's signature on it. I've never negotiated verbally and I would view any such verbal negotiations as a drawback and a waste of time, as opposed to some suggestion that it would be a bonus for an agent to bring me a signed contract.

As a buyer, I've just never done anything other than sign a contract (and usually cash unconditional... I like to live dangerously .)

 

[Peterw]

Very early in my career, I telephoned a seller with an offer. To my surprise they accepted. That surprise was surpassed by the surprise when the buyer said, great, I will think about proceeding. Never negotiated verbally ever since.

 

[pinkboy]

As a vendor, I wouldn't enter into any verbal negotiations with an agent. I'd expect a contract to be brought over with the purchaser's signature on it. I've never negotiated verbally and I would view any such verbal negotiations as a drawback and a waste of time, as opposed to some suggestion that it would be a bonus for an agent to bring me a signed contract.

As a seller, I've just never done anything other than sign a contract (and usually cash unconditional... I like to live dangerously .)

I suspect you mean 'buyer'?

pinkboy

 

[jokerjoe]

...can I draw up a contract and email/fax it to the agent instead of the other way around?

Does anybody do this or is the RE required to do it?

 

[Peterw]

I believe that you should have it prepared by the agent, so that it is correct and contains all the relevant items to comply with the Act.

 

[wylie]

I suspect you mean 'buyer'?

pinkboy

Oops! Yes. I was having a "senior" moment. I've amended my post.

 

[RPI]

I believe that you should have it prepared by the agent, so that it is correct and contains all the relevant items to comply with the Act.

Agreed

Peter and his team are all over this stuff and while most agents are very good, I see contracts almost every day of the week from agents who have not complied with the act and buyers could terminate the contract.

All though this may be less of an issue when the new Act comes into being next year