Please help critique my offer letter

Sashkinson

FTB in London, only started looking recently but have found a house I really like. It has only been on the market for a few days but has had lots of interest and the EA is keen I make an offer by Monday.

i was going to send this offer letter to them on Monday. For context, I am offering around 25k below asking price, which is 525k. The property was on the market just before Xmas at the price I am offering but this fell through due to chain issues.

Am I being too “nice” or giving lots of unnecessary information?

thanks so much for the feedback 

.....

Hi [EA],

It was good to meet you and see the [ ] property this weekend - thank you very much also for taking the time to answer all my questions.

As discussed on Saturday, I liked the property very much and it is somewhere I could definitely see myself staying long term and, hopefully, making into a family home.

I would therefore like to make an offer of £500k on the property and would be able to proceed with this ASAP. As discussed on the weekend, I’m a first time buyer and not part of a chain, so would be able to move at the sellers’ pace.

For further context, I have an 85% cash deposit available for this and a mortgage in principle available for the remainder (very happy to forward through supporting documentation of this).

I appreciate my offer is under the asking price, so wanted to briefly explain how I reached this amount.

1. Comparable selling prices of properties most recently sold in the area with similar square footage and of a similar spec eg 100 Xxxx Road (3 bed, £485k); 40 xxxxx Crescent (3 bed, £490k)
2. As a first time buyer, while I am able and willing to move quickly/chain-free, the stamp duty bands will mean that the difference in purchasing a £500k property vs. a £501k property would be £5k+, hence why I would be keen to stay within this price bracket.

Any insight you could provide on the above would be very much appreciated.

Kind regards,

Sashkinson

[Deleted User]

Sashkinson said:

FTB in London, only started looking recently but have found a house I really like. It has only been on the market for a few days but has had lots of interest and the EA is keen I make an offer by Monday.

i was going to send this offer letter to them on Monday. For context, I am offering around 25k below asking price, which is 525k. The property was on the market just before Xmas at the price I am offering but this fell through due to chain issues.

Am I being too “nice” or giving lots of unnecessary information?

thanks so much for the feedback 

.....

Hi [EA],

It was good to meet you and see the [ ] property this weekend - thank you very much also for taking the time to answer all my questions.

As discussed on Saturday, I liked the property very much and it is somewhere I could definitely see myself staying long term and, hopefully, making into a family home.

I would therefore like to make an offer of £500k on the property and would be able to proceed with this ASAP. As discussed on the weekend, I’m a first time buyer and not part of a chain, so would be able to move at the sellers’ pace.

For further context, I have an 85% cash deposit available for this and a mortgage in principle available for the remainder (very happy to forward through supporting documentation of this).

I appreciate my offer is under the asking price, so wanted to briefly explain how I reached this amount.

1. Comparable selling prices of properties most recently sold in the area with similar square footage and of a similar spec eg 100 Xxxx Road (3 bed, £485k); 40 xxxxx Crescent (3 bed, £490k)
2. As a first time buyer, while I am able and willing to move quickly/chain-free, the stamp duty bands will mean that the difference in purchasing a £500k property vs. a £501k property would be £5k+, hence why I would be keen to stay within this price bracket.

Any insight you could provide on the above would be very much appreciated.

Kind regards,

Sashkinson

Honestly....it's way too much information.  All you really need to do is give them a price and state that you are not in a chain, that's it.  Do you have a solicitor primed and ready to go?

Sashkinson

I don’t but can sort one - thanks for the feedback!

i know it’s a family home and they are keen not to sell to developers hence why I emphasised that. I’ve also heard it’s important to split out deposit/MIP?

lastly I was told by the EA that they’ve already had two other offers at asking price - I really don’t want to lose out

[Deleted User]

The amount is just part of the story.  If you can move quicker because you're not reliant on selling somewhere in order to buy this property then your offer might be more attractive than someone in a chain who has offered more.  Then again maybe the vendor is happy to wait longer if it means and extra 25k in the bank.  We just don't know.

comeandgo

If I received a letter like that it would go in the bin.  It shows you don't understand the buying process and could be trouble later.  

m0bov

!!!!!!!! Phone up, I’d offer xxx chain free and I have an MIP in place and a sol ready. Otherwise your going to be laughed at.

warby68

No no no , please don't send that.
You make your offer to the agent anyway who is interested in the number and your proceedability and that's it.
Your offer amount and the plus points you can offer as a buyer (no chain etc) and any conditions (no more marketing is the usual one) and that's it. 
So many of your comments could shoot you in the foot, not least telling the vendor how much dosh you have - 85% deposit really? Sellers' pace - what if they want years? comparable pricing? buy one of those. Stamp duty - not my problem, buy something cheaper.
Ring up, confirm by email - that's all that's needed.
And good luck - we've all been FTBs once. If you can find someone in real life who has been around the property block once or twice, that would be good to stop you making beginner's errors.
PS And be realistic. The 2 asking price offers could be agents bluff but if they are real you are unlikely to be in the game with a £25k reduction.

lees80

Don't send it. It's too wishy washy and elaborate. 

Phone the agent. Keep it short. I'm currently getting ready to sell and wouldn't want a letter from any potential buyer - it is simply a business transaction, nothing more. 

AdrianC

Sashkinson said:

Hi [EA],

It was good to meet you

If you really think it was nice to meet an EA, you need to get out a lot more.

and see the [ ] property this weekend - thank you very much also for taking the time to answer all my questions.

It's their job. They're paid for it.

As discussed on Saturday, I liked the property very much and it is somewhere I could definitely see myself staying long term and, hopefully, making into a family home.

You discussed this on Saturday, so why repeat yourself? The EA probably didn't care much then, either.

I would therefore like to make an offer of £500k on the property and would be able to proceed with this ASAP. As discussed on the weekend, I’m a first time buyer and not part of a chain, so would be able to move at the sellers’ pace.

And that's the bit they want to hear!

But many vendors (and all EAs) know that FTBs might be chain free (again, you repeat yourself), but they're also amongst the biggest PITAs in the market, because they worry and fret over every tiny detail, no matter how irrelevant. And, honestly, your letter shrieks of exactly that!

For further context, I have an 85% cash deposit available for this and a mortgage in principle available for the remainder (very happy to forward through supporting documentation of this).

They'll need you to jump through all those hoops anyway, both to qualify you as a buyer, and to try to sell you their pet mortgage broker's services.

I appreciate my offer is under the asking price, so wanted to briefly explain how I reached this amount.

1. Comparable selling prices of properties most recently sold in the area with similar square footage and of a similar spec eg 100 Xxxx Road (3 bed, £485k); 40 xxxxx Crescent (3 bed, £490k)

They know the comparables far better than you do, and could explain what you're missing about differences. But the only thing that matters is whether the vendor accepts your offer or not.

As a first time buyer, while I am able and willing to move quickly/chain-free, the stamp duty bands will mean that the difference in purchasing a £500k property vs. a £501k property would be £5k+, hence why I would be keen to stay within this price bracket.

Not their problem.

Any insight you could provide on the above would be very much appreciated.

Are you really asking the EA if they think you should offer more? That's what it sounds like...

UnderOffer

Oh please, do not send that letter. Just phone and give your offer and the position you are in FTB, mortgage ready etc. 
If they’ve already received 2 asking price offers why is it still for sale? I think the EA is telling a little fib there. 
Id be wary of any counter offer from the EA/Vendor, as I seriously doubt the other 2 interested parties exist, try and stick to the £500k and confirm your positive position.

PasturesNew

"Nobody" writes letters.  Just tell the EA your price and position.