Best Practice Offer Letter

Schwarzwald

Semple said:

I'm assuming you've never purchased a property before, as what you've described as your actions certainly do not sound the norm. 

…

Your assumption is unfortunately incorrect and you would have only needed to read 3 posts above …
And that is often the problem with assumptions, like to assume it is market standard to do xyz and not spelling it out.

but i also accept that there are buyers and vendors who prefer wrong assumptions over addressing questions directly

london21

Schwarzwald said:

london21 said:

Sellers market at present.

Having conditions etc would just nake you undesirable as a buyer. 

agree, but my question was a general one, I didnt say "in this market". Obv adding conditions in this market is not making you more attractive as a buyer

Read your post again, "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."

If you are not interested in people's opinion on the matter, why post it on the forum.

You offer was recent, the current market is a sellers market, unless you are the only person interested in the property, likely won't hear back with such demands. 

jimbog

I wouldn't even consider an offer put across in that way. It would come across as arrogant and would indicate a buyer who has little understanding of the UK market and its practices and would generally be a pain 

TheJP

Schwarzwald said:

TheJP said:

Schwarzwald said:

TheJP said:

Schwarzwald said:

user1977 said:

Schwarzwald said:

user1977 said:

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.

having spelled out these conditions upfront, was helpful for me when later reverting back, e.g. one property had damp and another had JKW, so I felt it was easier to justify a request for price reduction.

It wouldn't really have made any difference. Only a completely potty vendor would have demanded that you keep to the same price irrespective of (surprise) damp or JKW.

Lots of dodgy and greedy vendors in real estate, I would prefer to know as early as possible that I am dealing with a potty vendor so make it clear that I will reduce the price if they are hiding an issue. Might not accept my offer for that reason, so time and money saved.

Any way, consensus seems to be it is not market standard, at least I learned that. Thanks everyone

What if the surveyor finds something (vendor may or may not have known about it) but still values the house at what you are offering? There are potty vendors out just as there are potty buyers...

I personally dont look for my surveyor for price guidance, so their perspective on what I should offer is of secondary importance to me.

if it is minor (there will always be things coming up), I probably would not do anything.

if I deem it significant, I would raise it with the vendor, in line with what I told them upfront that I would do so.

Really! Their guidance is what you pay for and more importantly is the bargaining chip when negotiating.

You are partly right.
i pay for their guidance on value, but not on price.
value and price are two very different things.
and on price, I decide by myself.

But they work in synergy, the surveyor based on the condition of the property (value) can guide you on what you pay (price). The surveyor can, based on the value give a better reflection of price as they are the expert not you. You then use this information to make your decisions.

Ultimately the value of something sets the price.

Schwarzwald

london21 said:

Schwarzwald said:

london21 said:

Sellers market at present.

Having conditions etc would just nake you undesirable as a buyer. 

agree, but my question was a general one, I didnt say "in this market". Obv adding conditions in this market is not making you more attractive as a buyer

Read your post again, "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."

If you are not interested in people's opinion on the matter, why post it on the forum.

You offer was recent, the current market is a sellers market, unless you are the only person interested in the property, likely won't hear back with such demands. 

I am indeed quite interested in people’s opinion. So far i have pretty gratefully thanked everyone for sharing their views.

But thanks, I know what I wrote and dont need to reread it therefore.

You are reading “in this market” into my post, I never wrote that. Sellers’ and buyers’ markets come and go like falling and rising tide. Plus even if the macro market is hot, there are assets on a micro level that attract less attention.

That’s why i asked for “best practice” - not just today but also tomorrow. I never said “in this market”, that’s your interpretation.

But i hear you that you would not put such conditions forward. Thanks for the input.

london21

Schwarzwald said:

london21 said:

Schwarzwald said:

london21 said:

Sellers market at present.

Having conditions etc would just nake you undesirable as a buyer. 

agree, but my question was a general one, I didnt say "in this market". Obv adding conditions in this market is not making you more attractive as a buyer

Read your post again, "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."

If you are not interested in people's opinion on the matter, why post it on the forum.

You offer was recent, the current market is a sellers market, unless you are the only person interested in the property, likely won't hear back with such demands. 

I am indeed quite interested in people’s opinion. So far i have pretty gratefully thanked everyone for sharing their views.

But thanks, I know what I wrote and dont need to reread it therefore.

You are reading “in this market” into my post, I never wrote that. Sellers’ and buyers’ markets come and go like falling and rising tide. Plus even if the macro market is hot, there are assets on a micro level that attract less attention.

That’s why i asked for “best practice” - not just today but also tomorrow. I never said “in this market”, that’s your interpretation.

But i hear you that you would not put such conditions forward. Thanks for the input.

Regardless of market condition, “best practice” is buyers who are demanding are ignored. 

Thrugelmir

Schwarzwald said:

user1977 said:

Schwarzwald said:

user1977 said:

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.

having spelled out these conditions upfront, was helpful for me when later reverting back, e.g. one property had damp and another had JKW, so I felt it was easier to justify a request for price reduction.

It wouldn't really have made any difference. Only a completely potty vendor would have demanded that you keep to the same price irrespective of (surprise) damp or JKW.

Lots of dodgy and greedy vendors in real estate, 

Potential purchasers can be a complete pain in the backside as well. People are people.  Takes two parties to strike a deal not just one. For the majority of properties there's no shortage of buyers. Vendors can pick and choose. Even if means waiting a little longer. 

babyblade41

just call the agent and offer what you want to pay for it...The formality comes when the agents do the Mem of sale ., the rest is done through the conveyance process, but TBH I wouldn't entertain you as from the get go it sounds like you could be a right PITA (Not saying you are ) 

Have the sellers found their onward purchase yet as until the chain is complete everything is just verbally conveyed & no need for formalities at this point .  Your ID needs to be checked & your financial position before anything else 

Schwarzwald

Thrugelmir said:

Schwarzwald said:

user1977 said:

Schwarzwald said:

user1977 said:

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.

having spelled out these conditions upfront, was helpful for me when later reverting back, e.g. one property had damp and another had JKW, so I felt it was easier to justify a request for price reduction.

It wouldn't really have made any difference. Only a completely potty vendor would have demanded that you keep to the same price irrespective of (surprise) damp or JKW.

Lots of dodgy and greedy vendors in real estate, 

Potential purchasers can be a complete pain in the backside as well. People are people.  Takes two parties to strike a deal not just one. For the majority of properties there's no shortage of buyers. Vendors can pick and choose. Even if means waiting a little longer. 

Yes fully agree

74jax

I've worked around residential purchases for nearly 25yrs, admitedly the last 10 in newbuild. Never seen a list like that.

Your solicitor takes up the 'demands' for you, the estate agents mainly agrees a price you are both (seller/purchaser) happy with and then passes to sols.

Whatever rapport you have with the estate agent, the seller is paying them.