offer letters

is the seller using a broker? if so, limit the contingencies in the offer sheet, will make the offer look better, also put down 20% down instead of 10%, makes it look better. also provide comps to show why your offer is good. i'd also put a time contingency in there if you think the buyer's nervous/anxious to sell. i'd also state your income, FICO, whether your pre-approved (not pre-qualified, pre-approved--real important in this market) and also include the pre approval letter with commitment amount. Basically, it should look like a deal term sheet, they'll look pon you as professional. luck,

Why should a bidder limit the contingencies? Financing contingencies are a must in today's credit environment, and you'd have to be crazy to bid without an appraisal contingency.

I don't think it's correct that financing contingencies are a must in today's credit environment. I think the buyer should be pre-approved. I think financing contingencies will turn many sellers off . . . TSB, you need a good real estate attorney to help you with this, but all this stuff comes AFTER you've agreed on a price with the seller and made the seller confident that you have the financials and are a "serious" buyer. If you smack the seller with a million contingencies right off the back, they're not gonna want to deal with you.

Oops, I meant right off the bat, not right off the bat . . . . I too am making offers and do not use a buyer's broker . . . .

Hmmm, is it better to use a buyer's broker or do the search on your own?

Ask your lawyer to help you and if you don't have one...get one.

A buyer's broker is just another layer of static between you and a clear understanding of the deal. Only use a buyer's broker if you are timid or lazy or kind of dim and insecure . . . .

I disagree about when to use a buyer's broker. I think reasonable people differ on this and it isn't cut and dry. Because I have connected with a broker who I think represents the very best there is in the field (she's smart, educated, honest to a fault, has been generous, gracious and effective in our prior dealings, and she is tremendously familiar with the buildings and coop boards in the areas I'm looking) I prefer using her as a proxy in negotiations. They are very good tactical arguments for not engaging in negotiations directly in many situations. And while I don't mind combing streeteasy and the NYTimes on occasion, I leave it to my broker to deal with MLS and the smaller agencies that often omit streeteasy and even the NYTimes sometimes. I don't think the decision to use a buyer's agent is the result of being "timid or lazy or kind of dim and insecure" at all.

Yes, but how many good buyers' brokers are there? And how much of the time do they just add a further layer of complication and confusion to an already murky process? Kylewest's example of ONE good broker is anecdotal and doesn't cover most situations . . .

Do you have to write an offer letter? I've bought a pre-war condo and two houses and I've never used an offer letter. Is this for co-ops only?

You don't need to write a letter. You can phone in an offer. It's all about how you choose to approach negotiating.

As for it being hard to find a good broker: yeah, it is. It's also hard to find a good apt. But that doesn't mean you give up and buy an apt that sucks because it is too hard to find a good one. If you want a good broker, go find one. This whole process is work. No part is easy...except maybe posting on this forum.

You can also find a good apartment on your own WITHOUT a buyer's broker. And the advantage is that you don't have that added layer of complexity and confusion caused by yet another intermediary. And GOOD buyers' brokers are not plentiful.
Most offers for coop and condos in NYC are NOT made by letter. They're made by a simple phone call or e-mail. They're verbal and not at all binding. The nuts and bolts stuff kicks in after the loose verbal agreements are made. But you'll want to e-mail the seller's broker proof that your financials are good and that you're not just wasting the sellers' time.

You should definitely include financing and appraisal contingencies. Even if you are "pre approved", there are plenty of "outs" a bank has if it really wants to avoid funding. We are no longer in a "no contingencies" market- even in NYC. If you take these risks by eliminating these contingencies, that better be reflected in the purchase price. If not, why do it? In addition, you can only lock in your mortgage rate for 60 days, so in this environment, I'd definitely put in a closing time contingency. Contrary to what most people think, mortgage rates do not fall in line with Fed cuts. For example, for 30 year fixed jumbo loans, borrowers are paying an average of 6.94% which is only 8 basis points lower than when the Fed started easing (a basis point is 1/100th of a percent). In addition, if the credit environment worsens (which, by the way it is), lenders may actually raise rates for jumbo loans to take into consideration the increased risks of lending, regardless of whether the Fed continues to cut.

The specific offer submission process varies by listing agent. Some will require you to submit an 'offer form' whereas others will just ask you to email the specifics (price, % down, etc.) along with the standard docs which are required: REBNY offer form, pre-approval letter...so on and so forth (more info on these items here: http://www.hauseit.com/sample-submit-offer-form/)

By the way, I'd be weary about working directly with a listing agent under dual agency. It's sort of hard to credibly negotiate as an end buyer against a listing agent who may have decades of experience in negotiating and eating the lunch of unrepresented buyers who don't know how things really work. Not to mention, it makes little sense to be unrepresented when you can work with buyer agents that offer commission rebates such as Hauseit, RealD, etc.

I see a lot of buyer broker bashing here. You guys need to understand the point of having a buyers' agent these days is not to have someone send you listings you may have already seen yourself on StreetEasy. Nor is it in adding an extra layer or middleman.

The point is in FREE advice/guidance through the biggest purchase of your life. It's also in receiving a commission rebate from your buyer's agent to cover your closing costs (http://www.hauseit.com/how-do-i-get-a-buyer-agent-rebate-in-nyc/).

You're not so "smart" because you don't use a buyer's agent. You're dumb in fact because the cost of your representation is built into the sales price. If you don't elect to have your free representation, you're throwing it away and the listing agent will just get the extra commission.

And don't believe in "dual agency." That's a silly creation. How can one agent represent both the buyer and seller's best interests? Either no advice is given to either party, or more likely the agent will favor the seller "original" client who's actually paying, and who will still be there if your bid falls away.

Offer price. % financed (should be less than 80%). % deposit (typically 10% with balance of cash due at closing). Pre-approval amount from bank. Contingencies, if any. Summary of financials: assets, including liquid assets, liabilities, and net worth. Work history, including firm, years there, and salary.