I am just wondering what the escape clause to be used to get away from the offer you make when at the last moment you found a better deals or when that deals go wrong .. say we found out later the property is not worth the amount we offer?
can we use term such as:
-subject to partner approval
-subject to financeim not sure can someone help out pls thanks in advance
Milen…
What you are suggesting is unproffessional, for heavens sake….Do your research and then make your offer with confidence.
If you are in anyway unsure then don’t make an offer. If you get a reputation with good agents that you are one of those that reneges on acceptance…your offers will not be taken seriously.
That does not mean to say that you can’t make an offer “subject to a building or pest report”.
It’s sincere and sensible to do that. But to try and use it after an offer as an excuse…. well maybe you have read a book or two and think it’s just a big game.You are not on your own…I am aware of some
“so called buyers” that pay $100 holding deposit, to agents that are silly enough to take it on 3 houses in a weekend.Also aware of “Traders” in the Share Market with their CIC orders. Don’t ask.
Bill
Bill O’Mara
Real Estate,Mortgages,Share Market Strategies.
[email protected]yeah i do read from the books and just wondering if there is a sensible way to protect yourself. while you might be able to offer the buyer to be able to terminate your offer in 7 days if there is better offer. how bout that?
I fully agree with Bill, what you are suggesting is totally dishonest and should not be encouraged or entertained on this forum.
Do your homework and when you are absolutely sure that the deal is good for you then make an offer that you are comfortable with. If you do this then it is unlikely that a better deal will come along in 7 days! Buying at the peak of the property cycle (like now) is not a great strategy to start with and one should wait until it is again a buyers market. That way you will not be burnt by paying too much. But if you are not patient enough then just be rational and evaluate properties based on facts and numbers not emotion. And resist the temptation to think that there wont be another good deal around the corner.
There are too many people that make offers before doing the proper due diligence especially at auctions. Some people are even foolish enough to make offers sight unseen.
Hang on a sec!
If milen007 puts a clause in the contract that gives him 7 days to change his mind and the vendor accepts there is absolutely nothing dishonest about it whatsoever.
However…I would be surprised if many vendors did accept such a clause particularly given the current market conditions.
Regards,
Shane
thanks for all the inputs, i do not suggesting it, i just need opinion on this as i read it on books.
shanebal, what the reason you think the vendor wont accept the clause?
if they already sign the contract then we cant get out from it. how bout if they have not sign and accept the contract. can we get away from it?
again, i am not suggestting and not planning to implement it, just a general information on hows the culture here in australia. thanks
Well if they haven’t signed the contract then nothing has been accepted. You can walk away and so can they.
But at some point in time you will have to sign a contract to purchase the property, with conditions or without.
If I were a vendor in this market I wouldn’t accept such a clause because I know that there would be another offer just around the corner.
I once sold an apartment with a clause that stated the purchaser would have two weeks to determine if the property was worthwhile investment. However, offsetting this clause was the fact the purchase price was significantly above what I believed I could get from other purchasers.
So I wouldn’t give up hope but I think your chances are slim.
Regards,
Shane
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