Hi all,
My story goes like this.
We have identified a block thats a good deal. The block is FROM $575k!
We contacted the realestate guy and he has told us the block is already under offer subject to the sale of the buyers house.
We are going to put an offer in (subj to finance) .. but i was wondering what conditions/deals/wording/strategy I should put on my offer?
ie .. go in at 575k or less and play the game? As its already under offer i dont think i can push out the settlement to 60days…. eg .. these types of things.
Thanks
AnthonyIs the vendor considering an offer, or have they accepted an offer and thus have a conditional contract?
If the latter, then my understanding is that you can't do anything except be ready with a "back-up offer" if the conditions aren't fulfilled, at which time the agent can present you with the back-up offer.
If the vendor hasn't accepted the other offer, then I would be going in quickly with as many dollars as you feel you need to offer to make your offer more attractive than the "subject to sale" offer… Obviously the fewer conditions and the higher the dollars, the more attractive your offer is. Only you know how badly you want that block, and what it's really worth!
Sorry more info as follows:
The vendor has accepted the offer subject to the sale of the buyers house (call him buyer 1 – which makes me think to lock it in with the vendor it must be a good offer).
When i present my offer (call me buyer 2 – and the vendor accepts it and the conditions etc), the vendor has a clause in which he can say to buyer 1 you have 48 hours to make your offer unconditional or it can go to me.
In the end I can still luck out and the end if buyer 1 can come up with the $$$ now.
Anthony
So as you can see im trying to win the block AND maximise benefits for me from trying to leverage what youve very wise people have done!
If it was a normal deal id be doing all the stanard stuff Steve recommends like try a 60+ day settlement etc ..
Which leads me back to the question :
Have you been in this spot and/or what would you recommend/what conditions/deals/wording/strategy I should put on my offer?If the vendor has already accepted an offer then there is a valid contract in place with a special condition that the contract will become unconditional once the buyer has sold his place. The vendor cannot accept another offer until the contract on the first offer has fallen through. That is, there cannot be two valid offers on the one property at the same time.
The vendor cannot put a clause in your contract saying that buyer 1 has a set timeframe to make the offer unconditional. A contract can only bind the parties to it. The clause you are suggesting would bind buyer 1 (force him to make his contract unconditional) and he is not a party to your contract.
The only way you would be able to have a valid contract on this property is wait until the contract with buyer 1 falls through. I expect that the contract with buyer 1 would have a clause that buyer 1 has to sell his/her property within a certain timeframe or else the contract falls through. As trakka has correctly pointed out, at this stage all you can do is present the agent with a back up offer.
Again, as trakka has said, the best thing for you to do is to make a back up offer that is the best you can do to make the offer more attractive. If the vendor is desperate to sell then he/she may be willing to take less money. If they are not in a hurry and the offer from buyer 1 is a really good one then the vendor may just want to continue with the contract with buyer 1 and give buyer 1 more time to sell.
If I were you I would try to weasel out from the RE Agent:
1. How much the current contract is for
2. How long buyer 1 has to sell the property
3. How keen the vendor is to sell
4. Whether the vendor would rather have more money or a quick, guaranteed sale.You never know your luck – the agent may just tell you these things. I expect that I am going to get hounded by this comment on the forum with reminders that agents act for the vendors but in my experience, if you ask the right questions, you can find out anything you want from agents.
Let us know how you go.
Cheers
K
bump!
Linar wrote:If the vendor has already accepted an offer then there is a valid contract in place with a special condition that the contract will become unconditional once the buyer has sold his place. The vendor cannot accept another offer until the contract on the first offer has fallen through. That is, there cannot be two valid offers on the one property at the same time.
The vendor cannot put a clause in your contract saying that buyer 1 has a set timeframe to make the offer unconditional. A contract can only bind the parties to it. The clause you are suggesting would bind buyer 1 (force him to make his contract unconditional) and he is not a party to your contract.
Cheers
K
I sold a PPOR a couple of years back (big mistake, I no longer sell the goose that lays the golden eggs), Anyway back to my story. We had an offer put to us subject to the sale of another property, with the advise of our real estate agent we put a clause in the contract saying if we receive a better offer the first party has 48hrs to make the contract unconditional otherwise we will cancel the contract. It turned out to be good advice as we had a better offer put to us after 4 weeks and the first group where having trouble selling their house.
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