hi guys, how r we all?
i’m looking at buying a house by action, if the price is right of course!
my question is what sort of conditions can you put on the contract to get out of it (you know, just in case) i asked the agent and he said subject to finance wouldnt be allowed.. is this just because in this climate someone else would be able to buy in at a simular price and have no conditions, so the vendor would rather go with them or just because i should have take the weeks before the action to organise finance??
anyhelp would be good, i can easly get finance, but just in case hey, its in my nature, lol, i guess thats why i’m investing in property.. lol
SAFE AS HOUSES!
NEO
NICE ONE BRUVA!! Nice One Bruv! nice one
The concept of Auction is that the deal is finalised at the fall of the hammer. There is no room for weasel words to get out of it. The hammer falls and it is yours. Sign the contract on the spot and give them the cheque.
hey Neo,
i’m studying real estae at TAFE at the moment, and i am not sure if all of what xyzzy i saying is true. there are ways out of it i just cant remember how (thats what holidays do for you). i will go through my notes and see what i can find.
i don’t know if anyone can back me up, i may be completely wrong.
hope this helped somewhat.
[
]Powmow[]You can get a copy of the auciton contract prior to the auction. It’s unconditional – no cooking off period, no finance clause and no pest clause. Basically if you’re thinking of bidding, you need to get finance arranged and inspections done prior to bidding. I’ve always through that a bit of a scam – EVERYONE independantly paying for their own inspections – but that’s the way it works.
If you want contracts you can back out of if needed you’re better off not buying at auctions.
I have heard though that you can negotiate different clauses prior to the auction, but this is usually restricted to closing date and deposit amount.
Cheers!
Sheryl
[email protected]I’m with you Sheryl. I to think that the good old aution is a scam. I have been to a lot of them & it’s just amazing what kind of s#%t is pulled at them. If you stand back & watch you would be amazed at what typs of things you see. At one I went to i’m almost shore that the phone box behind me made a bid.
CraigcUnder the “new” NSW rules that are meant to tidy up these sorts of false bids no doubt the phone box registered itself as a bidder and declared if it was buying as principal or as an agent …..
Yes I have had exchange and settlement clauses altered once to allow a release of the deposit so that the vendor could buy something else and in return an extra two weeks to settle.
Having said that the concept of an auction is an undoable deal there and then. No weasel words in the contract …. more stiff upper lip and reminicent of the motto of the London Stock Exchange …. “my word is my bond” ….
When you exchange at an auction it is pretty much the be all end all.
I work with a few real estate agents in Sydney’s East and all off them say that only shmucks buy at an auction. If you want the property make an offer before and you will ascertain how serious the vendor is at the price you want to pay.
I have seen agents place dummer bidders and after a while you begin to recognise the same dummer bidders at these auctions. They bid at every auction and for a variety of properties (even at the same auction). I have seen the same bloke bid for a $2,500,000 home in Vaucluse and 2 properties later a semi in Botany. And then a month later a company title unit in Bondi. And at the end of it, he may have been the last bidder and the properties didn’t sell. I could be paranoid though. I don’t think the new regulations will restrict these practises.
[
][][]Sorry guys,
as i said i am just learning at the moment. i was just getting muddled up with something else.
sorry
[
]Powmow[]Hey Neo
I was just asking a real estate agent about this the other day… He told me you could possibly alter the settlement clause, but you need to tell them this before the auction. Eg – you might want a 60-day settlement instead of 30 days.
Anyway, apparently they will tell the seller before the auction what your conditions are. The seller has to know that if YOU win the auction, they will be accepting those settlement terms instead.
All sounds a bit difficult to me, and definitely sounds better to make an offer before the day!!
[]thanx for the help kids, its a bank repo job so ya cant buy before the action, anywho thanks i’m sure i’ll use your advise in the future.
NEO
NICE ONE BRUVA!! Nice One Bruv! nice one
My solicitor says that if there is anything illegal about the property you may pull out of the deal at auction. i.e. unapporved buildings, etc.
Make an offer prior to auction.
I have found agents might say, If you have $150,000, then be at the auction.
I started the bidding at an auction recently at $90,000 (would have happily paid $125,000), no one else bid and that was that! Being the only bidder I was in a position to negotiate with the buyer afterwards, and the agents played such obvious games trying to push the price up.
I did not purchase that property.
Keep looking.
MagnoliaI contacted REIQ on this matter, they informed me that once you purchase at an auction, you must settle.
Yes, that’s true. UNLESS there is something illegal about the property. Blossom
My understanding is that you never have to settle. You can forefit the deposit which people have done when the market goes south in an hurry as it has and will oneday no doubt do so again!
]Powmow[
][
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
