going to place an offer on a house tomorrow. very new to this whole thing, i m thinking only following clauses to include in my offer:
- Subject to Finance
- Subject to Property Valuation
- Subject to Pest inspection
- Subject to Building inspection
please add your valuable advises and experience in this. what other thing should we consider at the time of offer, thanks heaps in advance for your input, cheers
LOL!!!
I don't think there is a "standard" list of conditions that everyone should use, it depends on the house, the amount you are getting it for and your own situation.
If it is a cash offer, you don't need a finance clause, if it is a development site, you don't need a building, pest inspection clause but may need a subject to council approval clause.
It may be subject to selling another house, if you really are that is!
If you are offering a price significantly below the asking price you increase your chances of having it accepted by providing an unconditional offer! We have had some success in the past with even going as far as waving the cooling off period and settling in 10 days to "sweeten the deal" (Possible with cash offers).
For development sites with significant profits built in, you may want to offer a little above the asking price but with an extensive due diligence clause that will alow you time to submit plans to council!
It all depends on what you want and what you are using the property for!!!
Here's a useful one for an investment property (if you are getting it at market value).
Subject to your property manager gaining access to the property before settlement for the purpose of showing the property to prospective tenants.
The reason I would suggest adding it as a clause is because it increases your chances of having it rented at or near settlement date and decreases vacancy rates.
The chances of a selling agent allowing a property manager through a property before settlement without the above clause inserted into the purchase contract is ZERO!! We have tried with many properties many times! Once the contract is signed, it is a done deal for the agent and they don't want to be bothered with it anymore!!!!
Again, if the property was purchased significantly under market value and especially if it is owner occupied until settlement, any clauses will restrict the offer being accepted!!!
Hi Orica your questions are quite valid, however unless you are organising the valuaton yourself ? by subjecting it to finance it is already subjected to valuation, as the lender will not provide the finance if the property does not meet valuation requirements.
thanks for all your response. made my offer today and it is accepted by end of the day
made 2 major conditions:
1 – Subject to finance
2 – Subject to Building inspections (will go through ArchiCentre)property is only 7 years old and looks like in good health, but just for sake of my self-satisfaction, i have decided to go for Building and Pest inspections.
Congratulations!
Kelly
You must be logged in to reply to this topic. If you don't have an account, you can register here.
