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It’s time for the ‘Letter of Offer’ – Things are getting real!

Purchasing a property can be one of the most emotional things someone can do in their lifetime. It’s impossible to say for everyone what the most predominant emotion will be during the process too. But for most folk, the feeling of excitement when they decide to submit a Letter of Offer is significant. After all, for many people, this could be the beginning of the next major chapter in their lives.

Unfortunately, anxiety can also be high for purchasers at this point. And quite rightly so. The size of the investment means that you’ll want to get this right. If it’s the right property for you, then you want to make sure your offer is considered.

But what if it seems right but isn’t? What goes into a good Letter of Offer to protect you from unsuspected issues?

TALK TO  YOUR CONVEYANCER FIRST

Ideally, you’ll have already engaged the services of a Conveyancer. From the moment you decide that you’re going to look for a property to buy, having a Conveyancer in your corner is absolutely the smartest way to ensure you best possible outcome for your particular circumstances.

When it comes time to make an offer, enlist your Conveyancer’s services to assist with drafting the Letter of Offer. There are many things to consider and include in the letter, and having it all in good shape will give you the best opportunity of securing the property you want, for the price you want, and on terms that you find acceptable.

WHAT NEEDS TO BE IN THE LETTER OF OFFER?

Well, it might sound obvious, but you need to include your full legal name. Not just your given name and surname, but any middle names also. A good Agent will check this out, but not all Agents are good. Besides, the Agent works for the Vendor, not you. So you shouldn’t be relying on them for important details at all (that’s what your Conveyancer is for).

Perhaps you want a pest inspection undertaken before ultimate commital. Or maybe there are financing considerations. Indeed you may want your offer to be conditional on the sale of your current property? Any conditions you want the contract subject to, must be included in your Letter of Offer.

WHAT ELSE NEEDS CONSIDERATION?

That’s a big question to answer. Too big for a simple blog post in fact.

What if there are tenants in the property? When does their lease agreement expire? Do you want them to renew or not? Or are you hoping to put in tenants of your own? How do you request access before settlement to start attracting potential tenants?

These are just some of the many considerations that you may or may not think to include in your Letter of Offer.

WHAT IF YOU GET IT WRONG?

Purchasers are right to be fearful of getting it wrong. A poorly crafted Letter of Offer can lead to untold amounts of stress and remorse. This is why involving your Conveyancer is so critical.

WHAT’S NEXT?

Once your offer is in, it’s the Vendor and associated parties who need to act next. So let’s skip straight to the next step for purchasers.

If your offer is accepted, there are going to be some deadlines. Usually fast and stressful deadlines. And the to-do list involved in meeting these deadlines is long. Real long. Plus you may need to chase up other parties involved in the transaction if you want everything to fall into place in time for that big final piece of the puzzle. Settlement.

This race-to-the finish is involved, and without the right knowledge and assistance, it can be a very stressful time for property purchasers. Unless you do this kind of thing all the time, there’s going to be a lot of questions and doubts.

THE SECRET?

Yep. You guessed it. We keep coming back to this point because it’s hands-down the best way to ensure that you and your interests are protected best.

Involve your Conveyancer as early as possible, and intensely along the way. They work for you. When settlement day comes around and you’re in a stress-free and happy frame of mind, then their job is done.

We’re happy to have a free initial consultation with you to discuss anything and everything you want to know about purchasing a property. You can contact us here.

For some more great info on Letters of Offer, check out this article from the Real Estate Institute of South Australia.

The good folk at Aussie Home Loans also have some relevant advice.