Hi all,
I am after some advice from previous experience if possible.
I have located a property with an asking price of $143k & have found out the property is for sale by default from the owner by the bank. I dont think if I ask the agent he will disclose the amount owing on the property.
If possible could any body give me any advice on where to start with an offer.I know I havent given any details or locations I am not after necessarily after dollar value to start but a rough estimate from anybody who may have had the same situation as if done right this may be able to be obtained for a good price.
Any input would be greatly appreciated
Regards
Boardy
you will need to determine the market price of the property and be prepared to pay it…if you make an offer and purchase it cheaper – well done.
cheers
brahms
If you don’t ask, the answer is no!!
Hi,
A couple of issues come to mind.
First, if it is a mortgagee sale then you may find that the lender decides to go to auction. There’s no law compelling them to do this, however it is seen as best practice to do so to ensure that a fair price is obtained for the property (and so the vendor in default has no recourse against the lender).
Second, it will be on public record how much the house previosuly sold for. You might have to py some dollars, but if you worked on the loan being a min of 80% of the purchase price then that could be a starting point.
If you do make a low offer, make it attractive with quick and no-fuss terms.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Boardy,
As Brahms has said be prepared to do some market research so you know the true value of the property.
Be aware you more than likely won’t get the property at a ‘steal’ as I understand there is a little clause somewhere in the credit code (or similar) that prevents a lending institution from selling at such an undervalued price and thereby creating some distress for the vendor.
Finally the bank isn’t permitted to divulge the amount oustanding to anyone else – a little thing called the privacy act comes into play.
I am sure someone else can clarify this.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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