Best Practice Offer Letter

Schwarzwald

I would be interested to hear how people make their offers on residential properties and what they would consider best-in-class?

• Do you just call the EA and tell him the number?
• Do you send a short or rather formal email?
• What do you put in beyond the number?
• Do you attach any supporting information, like additional background on your person and purchase situation?

So far, I have sent a rather formal, well structured emails, laying out the offer price, how I derived at the price, information on my person and situation as well as why I believe this is a good offer and I am a good buyer.

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc.

 Which other conditions do you include, if any?

 Feel free to share your best-in-class offer emails (without the sensitive details) or templates that you might use.

 cheers

 

Slithery

Schwarzwald said:

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc.

If I was selling that would put you near the bottom of my list, it makes it sound like you'd be an awkward buyer.

TheJP

This approach would make me feel that you are a over demanding buyer and would turn me off.

user1977

Schwarzwald said:

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc

What makes you think any of those is useful or necessary?

Your offer isn't in any way binding, so no point setting a time limit.

Subject to survey is taken for granted.

Why [x] times? 

steampowered

I don't think you should make offers by sending a formal email. You will get much more information talking to people on the phone.

By all means send an email as a follow-up to confirm what was discussed, but talk to the agent first.

When I've put in offers the agent has been able to tell me whether there are other offers on the property; how quickly the seller is looking to move; whether the seller is in a chain or not.

Give the agent as much ammunition as possible to convince the seller you are a good buyer. Point out to the agent if you are chain free; have a good deposit; are able to be flexible with move in dates; have your mortgage in principle etc. - these things all make a difference. 

Schwarzwald

Slithery said:

Schwarzwald said:

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc.

If I was selling that would put you near the bottom of my list, it makes it sound like you'd be an annoying buyer.

Interesting to hear, I obviously wld argue that it makes my offer well thought through and just lays out the conditions upfront, so rather professional than annoying.

Nothing is more annoying than somebody who keeps changing the terms of a deal.

TheJP

Schwarzwald said:

Slithery said:

Schwarzwald said:

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc.

If I was selling that would put you near the bottom of my list, it makes it sound like you'd be an annoying buyer.

Interesting to hear, I obviously wld argue that it makes my offer well thought through and just lays out the conditions upfront, so rather professional than annoying.

Nothing is more annoying than somebody who keeps changing the terms of a deal.

There is no deal at this stage! You lay out the terms after you have an offer accepted and also be prepared that not all your terms will be welcomed/met. Your over thinking this part of the process. 

fiveacre

Call the EA, and don't add random conditions which are non-binding anyway. Do ask if there are future viewings booked and will they go ahead or be cancelled, and when the property advert will be taken down.

Schwarzwald

user1977 said:

Schwarzwald said:

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc

What makes you think any of those is useful or necessary?

 I have a professional transaction background, I am used to write offer letters for a different asset class, not real estate. 

Laying out the conditions upfront is market standard and simply helps to clarify expectations and needs.

user1977 said:

Schwarzwald said:

Plus I attached conditions to my offer, e.g. offer is only valid for 72 hours, acceptance of offer must result in property being taken off the market, offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, I am being granted access at least [x] times between offer acceptance and exchange, etc

Your offer isn't in any way binding, so no point setting a time limit.

Subject to survey is taken for granted.

Why [x] times? 

Ad time limit: i dont want to have a one sided offer being out there for weeks, I made a decision to make an offer and would expect the vendor to make and decision on the offer within a certain timeline too. Obviously this is more valuable in a buyers market than it is in a sellers market. But still, it puts some theoretical pressure on the vendor, the same theoretical pressure that EAs try to put on you when they say "property has lots of demand and you should make an offer in next few days".

Ad subject to survey: yes implicitly is "taken for granted", but I learned never to assume things, better to spell them out.

Ad [x] times viewing: again, just clarification upfront, I might deem viewing a property 5-times as normal, the vendor, especially when maybe still living in it, might think 2 times should be more than enough, so it simply sets expectations and avoids needing to "ask" later 

canaldumidi

Another vote against all those conditions. I'd only consider your offer if I were desperate and no one else was interested!

offer is only valid for 72 hours Why? if I want longer to consider it, I'll take longer. I certainly won't allow myself to be pushed into a rushed decison!

acceptance of offer must result in property being taken off the market, Well that's a fair request, but I might well want to first be satisfied of your financial position so my acceptance could have conditions which might influence when I remove the property from the market

offer is made on the basis that the property is in good and sound conditions, without any material or structural issues, Pointless. Get your survey done and then decide whether you are happy or not. I'm certainly not going to take on the role of a surveyor and offer any guarantees!

I am being granted access at least [x] times between offer acceptance and exchange, how many is 'x'? 3? 13? What if we agree 3 and then you want more eg for your roofer to take look? This is a matter to discuss /arrange as we go forward, not to be imposed at the start

 Which other conditions do you include, if any? None. None at all. If at any time during the process you change your mind, so be it.Likewise if I change my mind. Trying to establish a list of such conditions just makes you look like a really awkward customer.........

user1977

Schwarzwald said:

Laying out the conditions upfront is market standard 

You seem to be getting a unanimous response to the contrary! What happens in other asset classes (or indeed in this asset class in different jurisdictions) is irrelevant.