Hi guys
ls there a way to tie up a property that is for sale that l want , for a mth or so while l sort out my finaces ?
Once before a realestate just said oh no worries l’ll just chuck that one in the draw for a mth or so but this realeastates making a fussCheers
MaxHi Max
Merely make satisifactory finance a condition of the contract or alternatively get your mortgage broker to have a proper pre-approval in place for you and then proceed.
In todays market i would not be listening to an agent you said "She will me right mate".
Richard Taylor | Australia's leading private lender
Hi Max
Only way to tie up a property is to put it under contract. Maybe you can get a vendor to accept a longer finance clause.
For this reason we always arrange finance as the first step in buying a property, even before starting to look. Gives us precise information as to what we are prepared to pay, and the complete financial scenario for any property that may take our eye.
A real estate agent works for the vendor, and when we have sold property we are in constant contact with the agent, so any idea of "chucking it in a drawer" for even a day would be unacceptable, as well as totally unprofessional.
Good luck
Margmaximum wrote:Hi guys ls there a way to tie up a property that is for sale that l want , for a mth or so while l sort out my finaces ? Once before a realestate just said oh no worries l'll just chuck that one in the draw for a mth or so but this realeastates making a fuss Cheers MaxGoodness! I think that agent belongs in the drawer himself! Or maybe the bin may be a better place!
Hi Max, This is always a tricky time. I am in NSW and recently have been buying a few properties. I was gazumped a couple of months ago. My offer had been accepted and contracts had been sent to my solicitor. We were ready to sign when we found out that a contract had already been issued to another agents client. The vendor had basically not even informed my agent or solicitor that a higher amount had been offered and had issued another contract.
So you can see that until the contracts have been officially exchanged you can't tie anything up. This is particularly important when there are more than 1 agent selling the property. If it was an exclusive listing you are a lot safer . Generally the agent would take the property off the market for 2 weeks after negotiations have concluded. This gives you time to organise your legals and discuss the contract with your solicitor before you commit. You can then have a 2 or 3 week finance clause to protect yourself further. Remember that if you exchange contracts and then cannot get finance approval then you will be paying around $500 for the excercise of drawing up contracts and legal services of both the vendor's and your solicitor. This also recently happened to me when my finance had been approved but then the Mortgage Insurers refused to cover the loan as the land was in a flood plain. This came as a bit of a shock as council had recently approved plans for a duplex development.
Property Investment and development is always full of little hurdles!
Best wishes, Ian
Thanks for that info guys .
l did add a story here about another funny situation l was in but remembered l've already told it l think so l zapped that one but anyway .
Back to the old contracts eh – bugar .
lt's just so much messing around early on then costs you if it falls through . Happened a few times .
l was sure there were other ways but no such luck by the look of it .
l have just layed low until l see what l can do once or twice , nice and hassle free but l'm worried this one won't hang around.
Owell , will weigh up the situation and take it from there this week .
The realestates been leaving messages, sounds like his gonna want paperwork.
Cheers
MaxMaximum, A word of advice if you wish to be a serious investor. Go out and find a Broker, someone who you can relate to, tell them your dreams and get them to gather all of the information that they will require in order to calculate your borrowing capacity. What ever the figure is, is what it is, and you must then look for property that is in that price range. This will stop the frustration that you appear to be suffering at the moment. Don't get tied up in this particular property – there will always be a better one.
Jon
Thanks Jon , good advice , l’m in the middle of doing just that – a good broker.
Sorry , lf l appeared frustrated but no l’ve only just found this one . Ofcause there have been others but if we read the forum that’s all through it , seems to go with the territory.
l am always surprised at the hassles allot of even well established investors, 1/2 a dozen or sometimes allot more properties come across with deals or even financing .Cheers
MaxMax
An investor orientated mortgage broker can often alleviate some of the issues you have outlined.
Unless you can tie up the property under contract with subject to terms there is never a fool proof way of avoiding gazumping but a quick valuation and the ability to move forward when required can often help put a vendors mind at rest.
Richard Taylor | Australia's leading private lender
Thanks again Richard .
Great stuff . l'll be in touch later in wk.
Cheers
Max
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