Hi,
My girlfriend and I (both 23 years old) are looking at buying a 2 bedroom unit together. I put an offical offer in last night and wanted to put it subject to finance. The agent told me that because it is ment to be going to auction I have to submit an "unconditional offer" with no subject to finance.
We have done this but I think we will have to go higher, in my next bid (if required) I want to make it subject to finance.
My question is, is that just something the real estate agent has said or do offers really have to be "un-conditional" if you are putting them in before an auction.
Cheers,
ShannonAn offer does not have to be unconditional before auction. I think the agent is just after a simple offer from your comments.
You can submit an offer with or without subject to finance – as long as settlement terms and deposit amount are specified I don't see why it wouldn't be accepted by the agent and passed on if within the vendor's range.
Good luck.
It depends when the auction is.
if the auction is before you get approved finance and go unconditional then the agent is right
as the vendor would have payed for the auction they will want it to go to auction unless your deal was to go unconditional before auction.but watch out agents do try this on, even if theres no auction
I would go subject to finance no matter what or at least subject to something so that you have a way out if finance fails
You can make whatever offer you want. There are no rules or laws regarding the kinds of offers that can be made, regardless of whether there is an upcoming auction. Even at auction, providing you have the approval of the vendor, any bids can be subject to various conditions.
I think that what the agent is trying to say is that unless the offer is unconditional, then the vendor won't consider it. But don't let this push you into doing something that you don't want to do. Unless the vendor has specifically given the agent instructions not to pass on offers under $xxx or conditional offers, then the agent is obliged to pass on all offers to the vendor.
Good luck
K
Hi Shannon,
The agent has to submit all offers, that's all there is to it. Does not matter one iota what the terms are he must submit it.
Going to Auction is not a factor and without knowing anything about the property, if i was the vendor and it is a reasonable offer, I would be quite happy to negotiate regardless.
From the vendor's point of view (under advice of the agent), they are in the middle of an expensive marketing campaign. Any offer which will take the steam out of that campain should be unconditional if you want to secure the property. If the campaign is stopped midway based on a 'maybe' which then becomes a 'no' the vendor is stuck having paid for a sales campaign which has been stopped (or buyers have been warned off due to 'deposit taken'.
If I were selling via auction, I would only accept unconditional offers as the offer should be under auction conditions ie you have done your due diligence and have had finance arranged.
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