When making offers on properties, Do you use a purchase contract as vehicle for the offer? or Do you a letter of intent as an offer?
Which one is more commonly used? or Are there any other docs out there used to make offers?
Thanks
This is a pretty good question, and one that can be answered several ways.
First of all, making an offer to purchase a house using a bona fide purchase and sale agreement shows that you are a serious buyer. It reveals to the seller that you are ready, wiling, and able to do the deal and put it in writing. I always take a standard purchase and sale agreement with me to every appointment, and that is my first option if I really want to buy the house.
Letter of intents come in to play when the seller is just “shopping around” or has other offers on the house and just doesn’t seem as motivated to sell. I also use letters of intents to send offers to Realtors on their listings (which I usually do in mass quantities). So using a letter or intent with Realtors saves me time and ink, and it has never prevented the Realtor from accepting an offer I’ve made. Since the offer is in writing and signed, it has to be presented to the seller, even if it is only a letter of intent. If the offer is accepted, then a purchase and sale agreement can be prepared at that time.
There is only other thing that I use if I can’t hammer out a deal with the seller. it’s a cool little form that I created. It has multiple offers on it. I use this as a last resort to leave the seller something with my offers , and more specifically, my contact information. It’s nothing fancy, but I jot down 3 offers. The first one being for all cash. The second one being Owner Financing, and the third one being an option. (each offer increasing in price a bit).
I have had several sellers hang on to this offer sheet for MORE THAN A YEAR, and then call me when they were ready to accept my offer and remind me of what offer I made to them a year ago!!
Time and circumstances changes everything.
Thanks, great response