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At Property Tribes, we have always stated how vital it is to put your offers on a property in writing.We say this for the following reasons:1. It makes you look serious and professional and sets you apart from other people.2. It makes you memorable to the vendor and estate agent.3. The offer letter gives you a reason to "own" your offer and explain your reasoning behind it , so vendors cannot take offence if it is a bit cheeky!4. It keeps your offer "on the table" which is very important, particularly when 1 in 4 sales fall out of bed in the U.K. The agent may revert back to you if the sale falls out because he has your contact details close to hand.I know this works because I once received a call from a developer 6 months after I put my offer in, in writing. The property had been sold at the asking price, but it fell out of bed, and the developer wanted to close down the site. He called me and said "I kept your letter on my desk, and now I need to sell quickly, I can give you that 16% discount if you can complete in one month".Here is my offer letter template:Dear XXX,Re: 22 Tribal Avenue, Anytown, PT1 1PT**Subject to contract and satisfactory survey**Thank you very much for your time at the property yesterday and for your time in answering all my questions. I am now pleased to be able to make an offer.My offer is £XX, XXXI appreciate that my offer is probably a little less than what you are hoping for, so I would like to explain how I reached this amount, and also confirm that I am proceedable with the sale.I did some extensive research in the area looking at recent sold comparables, and concluded that the average price for a property similar to yours is £XX, XXX. Please find attached some examples of recent comparables and Land Registry "sold prices".However, your property is in need of some refurbishment and up-dating and I am sure you can understand that this would be factored into any offer you receive?I have estimated that the works are in the region of £10K.As I am a BTL investor, I also need to make sure that the deal stacks up from a rental point of view, so my offer is also based on local rental comparables.So taking everything into account, including the current state of the market in your area, I reached my offer price.Please note that I have a mortgage in place, and my solicitor is in funds and standing by.As I am buying for investment, I am not in a chain, and can therefore complete as quickly as all parties can move. I have previously completed on a property in 21 days, so will be pushing from my end for a quick completion.I confirm that I have a 25% deposit standing by, and would be willing to confirm that with a redacted bank statement.Thank you for your consideration of my offer and I look forward to hearing from you as soon as possible.Kind regards,Mr. P I. VestorHope people find the above useful? It has certainly served me well! Related content: Top 12 Property Tribes refurbishment resources10 negotiating tactics that can get you the best property dealMaking an offer ... is there really a technique to it?Making an offer ... by phone, email or in person?Cheeky offers. Are estate agents obliged to put them forwards?Making a cash offer
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I just thought I would up-date this thread to say that I have up-dated the offer letter template:3 tactics to give you the "deal closing" edge
Thanks for this advice Vanessa. I agree that putting an offer on paper and explaining the reasons for the "low" offer price could make all the difference towards a Yes/No decision from the seller. I have only used written offer once so far, and wasn't successful, but I am convinced its the right way to go for the reasons you state. I shows intent, professionalism and above all, gives the seller a reference point should the seller initially reject the offer and become frustrated a month or so down the line if no other offers come in....
I am viewing a potential property containing 3 flats today and if I like it, and think its worth going for, I will certainly be putting down my points on paper and sending it to the seller over the weekend so hopefully, this will do the job!!
Thank you for this Vanessa, it is VERY helpful.
Just up-dating this thread with a related topic which also shows how important it is to put "subject to survey" on the offer letter:Reducing offer price after survey?
This is very nice, thanks!
In A House Ltd
RLAAS Accredited Landlord