Written Offers

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From: David J


Hi All,
I was just wondering if anyone could give me some examples of how they word their written offers.Robert Kiyosaki and John Burley swear by them.They also mention adding some kind of backout clause.
Thanks!
 
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Reply: 1
From: Michael Yardney


I don't understand why so many people put in "weasel" clauses, or conditional clauses in their offers.
Either you are genuine and interested in buying the property - then make a serious offer; or you are not -then don't waste everyone's time.
I have found that the more conditions someone puts in offer to buy one of our properties, the less likely I am to consider the offer as serious and less likely to give it genuine consideration.
I also find that agents don't take these type of offers seriously, they don't like wasting time with "tire kickers."
So get to know your geographic patch well, know that portion of the market so well that you will recognise a bargain or a good buy when you see it, do your homework in advance and have your finance ready and hone up on your negotiation skills. Then when you see the right property make a serious and genuine offer, because if you don't someone else will and their unconditional offer will always be accepted over your offer with lots of conditions.
Think about it, if you were the vendor - which offer would you accept?
Michael Yardney
Metropole Properties
 
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Reply: 1.1
From: Michele B


I know Jeremy vehemently disagrees with making written offers because he can see us eventually having to deal with complex US style documentation if we do.

However, agents/vendors here seem to take offers more seriously when written, even simply a couple of sentences outlining conditions - the fewer the better obviously. An attached deposit cheque also seems to help - I owe Michael G a $5,000 dinner for that suggestion because that's what it saved me recently!

On the contract itself, have a look at replacing the damages clauses in the event of non-settlement with a clause stating you'll pay x dollars should you not settle on the agreed date for whatever reason. Makes the vendor happy and limits your exposure/liability to a finite sum. In effect it's an option on the property. If you read the small print in the damages clauses you'll see you can be held liable for the difference between your original purchase price and the price the vendor eventually gets if it's less.

Just a couple of ideas - be sure to check with your conveyancer/solicitor!

Michele
 
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Reply: 1.1.1
From: Sim' Hampel


I find that attaching a cheque to the offer doesn't work too well for me...

It's not so much that the faxed cheque is not acceptable, it's that the staples get jammed in the fax machine and cause no end of grief.

*sigh*

;-)

 
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Reply: 1.1.1.1
From: David U


Hi

What do people suggest I do to gain such an advantage re: attaching a deposit cheque as most of the offers I will make, will be via fax?

David U
 
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Reply: 1.1.1.1.1
From: David U


Hi Sly Dog

Thanks for the great idea

Regards

David U
 
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Reply: 1.1.1.1.1.1
From: Yuch .


Hi all,

Written offer works quite well for me.

I have a generic copy, if you are interested please drop me a line I can email it to you. And you can add in other clauses to suit your own needs.

I've tried to attach it to this message but don't know how attachment works....sorry guys..

email:yuchun_chen@nemmco.com.au

Regards
yuchun
~ The secret to success is to start from scratch and keep on scratching. ~
 
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Reply: 1.1.1.1.1.2
From: Jeremy Laws


I can't not comment on written offers!
PLEASE think VERY VERY VERY carefully before you all start to use them. We have a nice simple system here and it works. Well. If you want to see what proper written offers look like then have a look at the 6-7 pages that US offers consist of. They mean nothing, so many escape clauses that it becomes irrelevant. To make the ridiculous even worse, buying ONE building used two rolls of fax paper in one week. Now after the first faxing you cant actually read what you are signing. On top of this I am involved in a 50k litigation because a written offer was hand amended AFTER I had signed it. That 50k has been tied up for 2 years ALREADY and is likely to be for another 2-3 years.

Our agents here hate them. I was recently asked by a couple of agents if I was going to write written offers and each time I was told that if I had they would be binned in any case. As they should be.

Blindly following US operations is a very dum thing to do. Unless you have a VERY specific need for one THINK FOR YOURSELVES. Written offers are a pain in the butt, a waste of time, and there is enough paper being wasted in the world. THEY MEAN NOTHING and unless you are buying hotels, or shopping centres, there is absolutely no need. A house is a house. They either stand up or fall down, rent or dont rent. Don't make it any more complicated than it is.

As the Chinese say "Be very careful what you wish for"
 
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Reply: 1.1.1.1.1.2.1
From: Paul Zagoridis


I make some written offers on a signed contract with deposit cheque. It is a negotiating technique to get a quick response from vendors (and to indicate my bona fides).

Technically contract exchange is required for both parties to be secure, contract law is quite specific that verbal offers are binding if accepted.

Now I believe judicial and statute law doesn't apply that standard too stringently on Real Property transactions. I never make a verbal offer I wouldn't want accepted.

Lord save us from the US experience. I agree with Jeremy there. Making written offers for the sake of making written offers is foolish. People make offers in writing with a cheque because they are normally low balling. So in this market I've made precisely ONE written offer (with cheque at full asking price) -- it was rejected.

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz
 
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Reply: 1.1.1.1.1.2.1.1
From: Jeremy Laws


The point is that written offers get VERY VERY complicated. If you cant negotiate without one then your technique sux and you are an idiot. Get the spelling checked by someone else if thats the case;) I just signed off on a standard Californian offer document, and reading what you have written _almost_ makes me mad! I circumvented wasting a few rolls of fax paper by telling (illegally) my realtor to sign for me, but 9 pages of telephone book print per offer, to make a totally non binding agreement - agreeing to nothing is just plain silly! In 15 years time you guys might hopefully realise how painful they are! You would be amazed if you saw this wonderful example of quasi legal ese!
 
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Reply: 1.1.1.1.1.2.1.1.1
From: Jeremy Laws


Written offers Sly Dog, are a very slippery slope. If you want to have a very complicated sale/buy process then written offers are great. I wasn't talking of the US legal system, but their ridiculous offer documents. I have issues with their legal system too, but the offer stuff is simply crazy. I didn't answer your question, because it was irrelevant. Why make a written offer if you yourself said it makes no difference. Is your garden all concrete? What do you have against trees? If you have been buying/selling RE for three decades you won't have to worry about complicated offer docs, the next generation will have them forced upon them. BTW doesn't a cheque mean you are a little serious! I would have thought so.

Think of the fun you and I could have if you were buying a property from me. I would reply with a written counter, with a few MORE conditions, and so on and so forth. Keep you writing for years!
 
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