Making a knockout offer
Most people like to make a low offer, see what counter offer the vendor makes, and then bargain until a deal is struck.
However, some purchasers just want to secure a property without "pussy-footing around". They want to make a "Knock-Out" offer
that will surprise and delight the vendor, and bring about a quick and decisive sale.
In this section we've set out the main features of the "Knock-Out" offer.
Best price up-front
The price is crucial. Every vendor looks for the bottom line, and first impressions in terms of price are very important.
Having said this, however, we do acknowledge that the highest price does not always constitute the best offer. Consider this: You've worked out the highest possible price you can offer, and
you think that someone else may be able to better it. By submitting your offer as a "knock-out" offer (see the other
criteria below) you may be able to make it more attractive than other offers.
But, all things being equal, the price is what will make the difference.
Committed purchaser
A committed purchaser is one who clearly wants to "get the job done". The committed purchaser has done all
of the ground-work:
 |
Legal advice - the purchaser has obtained legal advice, and knows what she is getting herself into. By
getting legal advice before signing the contract the purchaser eliminates the "cooling off"
period. This means that when the vendor accepts the offer the deal is final. |
| |
Signing on the dotted line - a contract for the sale of real
estate must be put in writing. The committed purchaser has her lawyer
prepare the offer in the form of a completed contract, and she signs it to confirm an intention to be bound by it. |
| |
Finance approved - an offer is less attractive if the vendor has to wait to see if the purchaser's loan will be approved. Cash offers are solid. Finance should be approved
before the offer is made.
|
| |
No added conditions - the vendor doesn't want to wait for a building inspector to give the "OK"; or for a pest inspector to give the "all clear". Such delays, together
with the risk that the sale could be cancelled later can make an offer quite unattractive. Any necessary inspections and checks should be conducted before the offer is made. |
No nonsense approach
"Knock-Out" offers are final. They're not accompanied by
"...and can you let me know if anyone else puts in a better offer?"
or
"...let me know if I'm not in the ball-park and I'll see what I can do."
The "Knock-Out" offer speaks for itself. The purchaser is telling the vendor, "This is my best offer, my one and only offer."
Walk-away offer
The "Knock-Out" offer either wins or it loses. If it's accepted by the vendor, then both parties are winners.
If the offer is rejected, then both parties can walk away without looking back.
Submitting the offer
The offer is submitted by delivering the completed
contract of sale
to our office. A purchaser can do this by:
| |
Delivering it to our office in person; |
| |
Sending it to us by post, email or fax; or |
| |
Having their lawyer send it to us by post, email or fax. |
Paying the deposit
We do not require payment of the deposit at the time an offer is submitted. The obligation to pay a deposit only arises when an offer is accepted, resulting in a binding contract.
When a
purchaser's lawyer assists in the completion of the purchaser's offer, he/she will advise regarding the amount of the deposit to be offered (usually 10% of the purchase price), and the time required for the obtaining and payment of deposit funds.
Conclusion
Making a "Knock-Out" offer isn't for everyone. It involves a degree of recklessness and risk. It is possible that careful negotiation could
secure a property for a slightly lower price, with the right to abandon the purchase if bank finance fails or other conditions are not met.
But for those who are prepared to carry the risk, there is every chance that a "Knock-Out" offer will secure the property instantly, for a price
the purchaser is willing to pay, while other intending purchasers are still trying to negotiate the safest deal.
Legal Notice
All visitors to this website are advised to visit our
Disclaimer regarding the limited use of information provided on this website, and our Conveyancing Section for conveyancing consumer information.
