Hi,
we’re in the process of finding our second IP, and yesterday we found something with real potential. I rang the agent today to ask for a second inspection (in a week) with a builder friend, and he said it probably wasn’t worth while making the appointment, because he thought it would be sold before then.
I know he just wants me to jump in and make an offer, but I’m not prepared to do that.
I told him not to bother making an appointment and I’d leave it at that, at which point he said he’d give me a call on Tuesday if it was still available.
Don’t you think he’d at least ask me if I wanted to make an offer?
Anyway, I wanted to get some ideas on what you’d all do.
The property is definately run down and needs at least a few thousand poured in to make it liveable for tenants. The long term plan would have been to subdivide and put a couple of units on the site, which is what’s already happening in the street. It’s in a fairly good area, which is apparently going to take off in a few years, so I’m fairly keen to buy.
I look forward to hearing your replies.
Thanks
Landt.maybe he’s telling the truth? either way it’s irrelevant to you…. don’t be rushed, do what’s right for you. there will be other properties.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
the only right call is your call. Whatever you choose to do is right for you. Make sure thought that you dont regret missing deals later.
Make the decision and move on, you will feel better in yourself if you do.
Good Luck
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!Hi Landt,
Agents certainly come up with some classic lines, don’t they! I would simply proceed as planned (assuming it’s not sold next week), and if it sells, it sells. In terms of doing your due diligence, you’re not yet in a position where you’re happy to make an offer. If the property’s not sold the agent is being very foolish as they should be treating you as a red-hot prospect, and buttering you up, rather than indulging in fairly dismissive behaviour.Speaking generally, if it is as good a property as the agent seems to think, it would be worth trying to get the builder to inspect with you a bit sooner.
Of course if this is just a dodgy ‘sales’ tactic as you seem to suspect … Just have a laugh at the agent’s behaviour and continue to ‘run your own race’ as they say.
Hope it’s not sold and you manage to negotiate a fabulous price!!!!! If it is sold, just tell the agent that you would have bought it had you known of it earlier and ask them to give you the first call/email next time they list a similar property. You may be able to guilt them into putting you on the top of their list next time (:
Leila
Hi everyone,
thanks for your advice.
Leila, you’re quite right in saying that we’re not ready to make an offer. We haven’t done a building inspection, and that’s something it certainly needs.
If we don’t ge this one, then another will come along. We’ll wait.
Landt.Thats wise Landt!your attitude of not being anxious is good. Ihave personally learnt this the hard way and got into bidding wars with another buyer.I got that property but now I step back a bit when dealing and know there are other deals out there if I am being pressured!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
We all want that great deal now, me too, but patience & due dilligence is worth it’s weight in gold.No matter how good a deal seems, there will always be another.
There’s lots of reasons an agent won’t show you a property or submit your offer to the vendor.
Remember while the agent is meant to be working for the vendor, most really look after themselves first.
He could be telling the trusth about another offer – so why doesn’t he ask you for one?
Firstly he may not think you are serious and he doesn’t want to waste his time.
Or he may have an offer from a purchaser who has a property to sell. And that will give him more business than your offer
Also with regard to potential subdivision have you done your homework. Do you know what to look for and what the council requires for a subdivision. Just because others have done it in the street doesn’t mean you can. Planning regulkations have changed in many municipalities.
So do your due dilligence. Don’t rush in.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Michael,
you have hit the nail on the head. When he told me he had someone else who was interested so it might be gone by next week, I wondered why he didn’t ask me if I’d like to put in an offer.
It actually says on the advertisment for this property that there are approved plans available for sub-division, so I’d be very interested in seeing them before anything further happened. However, I am very grateful for your advice, and I will be taking things slowly and checking everything carefully.
Thanks
Landt.Hi Landt,
Stick to your guns and do what is best for you.Dont be concerned about losing a deal the bargain of the year comes up once a week,remove the emotions and crunch the numbers thats what really matters.
Cheersm.wilson
Hi,
the interesting development today, is that the agent has rung to say that the owner has decided to sell it herself. However, he asked me if I was still interested in putting in an offer. I told him my price, and he rang back 1/2 hour later to see what my terms would be. I told him I’m happy with a 30 day settlement, so then he says that this will be unconditional. I know that the place is run down, but I do want to go through it with a builder friend, so that i know how much I’ll be up for in making it liveable. So I told him that I wanted to make it conditional on a building report that was satisfactory to me.
He was then saying that i couldn’t make it as general as that, but maybe I could because I was the buyer.
Did I say the right thing? The only other place we’ve bought was our other IP which was originally our PPOR so it was a bit different, and I don’t even remember the process we went through then.
Thanks for all your help.
Landt.What a load of B******t!
ALWAYS have a subject to building and pest inspection as well as a sunbject to finance clause in the contract! And they should aways specify that the conditions must be acceptable to you – otherwise if you just say “subject to finance” then they could provide you the finance… at like 30%pa and you could be bound by it. If it is just “subject to building inspection” without the acceptable to the buyer but then it is possable that they hold the inspection – inspection says condemmed- still might have to buy, as a building inspection WAS done. If you can’t get those conditions in the contract, walk away, Hell NO!! RUN!! There is most likely a BIG problem waiting to bite you. (But maybe I am too cynical)
Hmmm, did you tell the agent you were bringing your builder friend along? If so I can see a common thread here – wants to eclude building inspection clause and wants you to make an offer before you bring your builder mate along to look at it…. I wonder which structural defect it doesn’t have??[biggrin]
The Building & Pest inspection and finance clauses are standard in a lot of contracts, I know they are in all of mine. The “subject to finance that is acceptable to the purchaser” clause is a great way of giving you an “out” from the deal if it begins to smell, even in some other way, it even builds in a bit of value protection as the banks do a valuation prior to approving finance.
Iwould deal with the owner – you might even be able to beat them down as they could save the REA fees.
Steve K
Note: the above is opinion only and not advice.
Steve Kerr
Opportunity knocks softly, listen carefully!
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