At MV Real Estate our policy when a buyer wants to put an offer in for a property is that it be done officially, that is a contract is drawn and signed appropriately.
Why do we do it this way and not as a “verbal offer” or in a “letter of offer”?
It’s simple – with regard to the “verbal offer”, well it isn’t worth the paper it is written and the second option of a “letter of offer” is not legally binding.
While agents are doing negotiations over the phone with nothing in writing a property could be bought by someone else where the agent has put pen to paper!
Our job as agents to sell a property and the best way to do that is to find a genuine buyer who is willing to commit their intention to purchase to paper preferably in the form of a contract.
The offer price and the conditions may not meet the seller’s expectations, however that is where the negotiation process begins.
The contract is presented to the seller giving them the chance to agree or disagree and if they wish to do so they can cross out the price or conditions they disagree with, including settlement date etc and put in a counter offer with their terms and conditions. This is taken back to the buyer for their perusal and they then have the chance to agree or disagee. Sometimes it can be a simple process and at others it may take a few trips back and forth until there is an agreement or the negotiations fail and the contract is not actioned.
The importance of the physical contract is there is no misunderstanding between the parties as to what has been decided and agreed upon.
In the current electronic age there is the possibility of going through the process via email – particularly handy if a buyer or seller is interstate or overseas.