hello everyone,
im back again, needing more advice.
the situation is, we got the pre-approval from the bank. we found a property that we like and is within our price range. we gathered it’s been in the market for more than 4 weeks.the property is more or less 1 year old.
we’ve put in our first offer verbally (say 300K) with the REA. She said, that no way the vendor will consider as they got an offer of 310K a week ago and the vendor says no.The asking price is (320-340K) Later that day the REA called and said, the vendor decided to give it to us, for $310K which was same amount offered by another buyer which they rejected a week ago. But this is with the condition that we will not be putting a “finance clause” in the contract and that settlement date will be 20days. we have not done any building inspection or any conveyancing or anything with the property. we thought BPI was not necessary as the building is only 1year old. (or is BPI and conveyancing, etc still necessary?)
so we said, we will not sign the contract without the finance clause. so the REA said, in that case i need to get in touch with the other buyer who gave the offer first. so we said ok. the following day, we called the REA and asked what happened to that other buyer. REA said, they are in similar situation as ours and can not settle early as they are also first home owners.
then, more negotiations over the phone and we decided to go to their office. we signed the contract putting our finance clause in there. REA said, the other buyer will be coming later today and will sign the contract with finance clause. we said, let them be. we let $1K deposit. the next day REA said the vendor has not signed the contract. we’ll have to wait for 4 days as he needs to think about it.
we told them we can not wait for 4 days as we are looking at putting offer on other property ( we really are) and told them will cancel our offer and will get our $1K back. REA said, the person who has to release the check is not available so will have to get the money back tomorrow.
Now, we really want this property. so we dont know if we should cancel the offer as we said or should we wait for the vendor?
any advice on how to try and win this deal will help.
thanks again
<<<Now, we really want this property…. >>>
How much do you really want this property. You are near market price – offer a few thousand more if you really want the property.
If this property is for investment it should be a business decision not an emotional decision. I feel you are letting emotion override good business sense.
I would suggest you withdraw the offer and move on. If I am not mistaken you have already signed a contract at a higher price than your initial offer and it would appear that the vendor is trying to play one potential buyer off against the other.
Cheers…Hope everything works out for you[aacool]
Kelvin J Brennan
aafreen… what has happened with this one? Did you withdraw your offer or did they accept the original price? I’m quite interested in what happens with this one!
Cheers[suave2]
Tam
price OR terms…not both.
Sounds like a deal going bad…Regards
PhilI will make it….regardless
Remember try not to beleive everything an agent says. Negotiate hard, and don’t let them call the shots. beware 20 days is a quick settlement, and if you are using a major bank, they may not be able to settle in time.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
hi everyone,
thank you for all the responses.
today, we finally got the vendor to sign the contract, with the subject to finance clause and 30 day settlement terms.The REA promised to get back to us yesterday to give us an update but he didnt. so this morning we called the agent again, and we were told there are now 3 interested buyers (including us). we managed to find a contact number of the vendor. we called but the person responsible for making the decision was not available and we were told to deal with the REA. We told them that we were not happy with the way the agent was dealing the case, and not letting us know where we stand, so we could have a chance to better our offer if necessary.
A few minutes later, the REA called and said potential buyer 3 has withdrawn their offer. (this withdrawn offer was 320K. no finance clause with 60 day settlement). SO now there was only one party competing with us. we didn’t like the idea of negotiating over the phone so we drove to the REA office.We demanded proof of the other offer. The other buyer has same condition as ours, (subject to finance plus 30 day settlement). Their offer was $313K (3K more than ours). We said, we’ll pay $314K, the agent called this other buyer to give him a chance to better his offer. Other buyer said No more. So we changed the price and settlement dates on the contract and then went to get a check for the 10% deposit while waiting for the vendor to come sign the contract.
Vendor signed the contract, we faxed a copy of the contract to our solicitor and now we seat and sweat while we wait for the bank to do their job. There’s this christmas holiday coming and we are a bit worried there will be some delays.
It’s been tough, this is our first purchase, it will be our PPOR. We did get emotional and that was not good at all. However, we have done a bit of research on the area. we must have checked every single property on sale that has asking prices from 5-15% above and below our price range. And there was another property literally across the road (same building size, smaller block and 3 years older) and the vendor is not willing to accept offers lower than 315K. Their asking price is 330K-345K. we attended a few auctions as well, and from there, we still feel that this property at $314K is still a good buy. (hopefully!)
Now, we need more help. AM i right by thinking that we need to let the vendor know 3 days before the finance clause timeframe expires, otherwise we wont be able to use that as a scape clause if the bank say No? What happens if the bank can not get back to us within this timeframe ? Can we apply for an extention ? What penalties will be there ? Are we gonna loose our 10% deposit ?
Thanks again everyone. hope everything will go well. Biggest lesson i learned from this one, is to not get emotional about any property!
cheers,
aafreenWell done Aafreen
You are supposed to get emotional on your own home!
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I think you should ask your other questions to your solicitor. I would suspect that you could have up to the last minute to withdraw using the finance clause. You can try to negotiate an extension, but not always succeed. Banks often don’t give you an answer in time, so you have some tough decisions to make.
Terryw
Discover Home Loans
Mortgage Broker
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Well, all I can say is that if a RE agent showed you another person’s offer, I’d seriously have to question their commitment to the privacy legislation!
Keep smiling
Felicity
a possible suggestion is to ask what price adjust will the vendor make to accomodate the 20 day settlement?…… if no dice then give them 60 days settlement and go back to the $300….. wait for the comeback and make sure you say to the agent that $300K is all you have in the kitty and cannot get any more than that. and that you relly want the house too of course! – only my suggestions of course.
Cheers
KiwiOriginally posted by FW:Well, all I can say is that if a RE agent showed you another person’s offer, I’d seriously have to question their commitment to the privacy legislation! Keep smiling Felicity
Hi Aafreen
I’m with Felicity (above) on this one in questioning the agents commitment to privacy legislation. As I was reading the posts on your thread, my mind questioned whether you were being “played” by a street smart and/or ruthless RE agent. These guys are trained to “condition” buyers and vendors.
I was so relieved when you said: “We demanded PROOF of this other offer”, because I saw it as evidence that you were aware of the strong likelihood you were being “played”.
How did the agent actually supply this proof? Did you actually get to see the other (alleged? fabricated? real?) bidder’s contract?
Greg
Oh, you were not prepared to walk away at the begining. This is what got you sign the contract.
The REA always has some story to tell. Hell with it. They don’t get paid if they don’t sell.
I saw a property last weekend. The REA told me that the vendors’ father passed died. They need to money to buy a unit for the mother to live in. I said to the REA that they are very nice people who care for their parents. I am so touched. OK, let’s get on with the numbers.
I inspected the property, and then made an offer. The REA said my offer was too low, they will not accept it. There will be another offer coming in in the afternoon. I told him if he thinks I was wasting his time, I would walk out the door at once. He shutup, and wrote everything down in the contract.
By the way, he did ask me to sign a declaration to acknowledge there is more than one offer.
IQ,
Why would you disclose that you were going to make another offer after your initial offer? Does this not defeat the purpose?
I would just wait an hour or two and tell you your first offer was rejected.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Just a point,
We have always put an expiry clause in the offer
E.g. This offer expires on midnight xx Dec or whatever.
That way if you are looking at another house, they can’t go and accept your offer after you have gone cold.
I don’t present signed offers for property. I only sign after they accept the verbal and present me with a contract signed by the vendor. That way, they can never accept unless I want them to as property contracts must be evidenced in writing. Verbal means nothing.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
Rob,
I would never entertain a verbal offer. (other folks might) Offers must be in writing with a deposit before I dip my hand.
What would you do in this instance?
Aafreen,
well done for sticking to your guns in the end.
The property sounds like it is well placed for capital growth in the future as you have bought at a good discount.In the period between now and settlement, you could get it independantly valued (by a bank or valuer) to ensure that it is value for money as your PPOR.
GuyL[biggrin]
Wayne, in that situation I would offer a ridiculously low price with favourable ‘subject to’ clauses. In other words, I would probably walk away.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty Ltd
oooh, you mercenary!!!! LOL
I’m glad it has never been necessary fro me to sell in a buyers market.
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