Hi all,
Need advice. Here’ the situation. Property was passed in at auction a month ago. I’ve discovered this place subsequent to the auction. Was driving past 2 days ago, so stopped to look. Owner turned up and showed me through. She didn’t mention it had gone to auction etc – found out later.
Currently an offer on this place that runs out next Tues. Buyer apparently having trouble getting finance, and vendor not confident the deal will proceed.
If the deal falls through, I want to match his price and terms because I’m pretty confident this guy’s done his due diligence (including build inspect) and come up with the right figure. According to the vendor, he already owns several investment properties.
This property is not in an area that I know well, though it’s potential is obvious. This is why I’d rather match his offer than take a stab at a price myself. Also, if his offer’s been accepted, then logic is that my equal offer will be too.
BUT I need to be confident that I really am paying what he was going to pay for it.
Is it OK for me to ask to see his written offer?
Could the agent just refuse on privacy grounds?And if the agent does agree to show me his offer, how can I be sure the agent hasn’t just dummied something up or doctored the original document in some way?
regards,
CarlinTo my knowledge, carlin, it’s not legal for an agent to disclose the other vendor’s offer.
kay henry
I would find out what the highest offer at the auction was and offer just below that amount. Agents must keep a register of all bids made at auction and there is no privacy issues disclosing these amounts. The reason I say offer less than the highest bid is because it could have been the vendor’s bid.
Robert Bou-Hamdan
Mortgage AdviserI wouldn’t assume that the other buyer has done their due diligence just because you’ve been told they’re a property investor (the fact that he has made an offer when he doesn’t have access to adeqaute finance might be a warning sign).
I agree with Robert that you should make an offer lower than the highest auction bid (or lower than the alleged ‘investor’ bid). House price is about supply and demand, and it sounds like you may be the only interested party if this ‘investor’ falls through – in which case they may be happy to just round the deal up.
Worst case scenario: they say ‘no’ to your low bid, and ask you to reconsider your price offer.
Hi Carlin
I would be doing my own due diligence no matter what you think the other investor has done. Maybe the other investor has uncovered something since they submitted the offer and is only making can’t finance noises to get out of the deal.
Clay
Hi Carlin,
The only way you know that due diligence has been done to your satisfaction is if you have done it yourself. If you don’t know the other investor how do you know what he has done? Are you prepared to simply accept the vendor’s statement, which even if accurate, may not reflect the other investor’s success etc.?
There may be short cuts in investing but not when it comes to due diligence. When you have done that you will be in a position to make your own independent bid based on your findings.
Good luck
pr
There’s way too much trust here. You want to trust the Real estate agent and the vendor, the two people who don’t have your interests at heart. Only trust yourself. Put in your own offer, it may be below the other offer and may be accepted.
AXJ
Hi all,
Thanks for all your feedback. Your words have given me a timely reality check. You’re all saying the same thing, and it’s right – of-course I need to do my own checks on this place.
Thanks again!!
regards,
Carlin
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