- Scott No Mates wrote:All the more reason to be bargaining downwards and moving away from your original offer.
Yup. Having never done this before, are we displaying “poor form” by making the offer they’d hope we’d make, to get it off the market, then doing the investigation and driving the house down in price?
I don’t want everyone to come away from the deal with a bad feeling, tis all.
z
Hi,
I don't think you are displaying poor form. Any reasonable person would have the expectation of the vendor either repairing the damage or if they choose not to then discounting the property to offset the cost of repairs. It is your first purchase and it is a pretty steep learning curve. Remember if you don't ask you don't get.
If the vendor understands that there is a serious pest problem then they may be even more willing to offload something they think may sit on the market for ever. Don't hesitate to go a fair bit lower on your next offer (if you still want to go with it of course) to take into account for interest you might pay if the repairs happen after settlement, rent you might lose if the property is empty for say 2 mths while being repaired and any other costs not just the actual repair costs. Even negotiating on the settlement terms may save you money for instance longer settlement, access and ability to undertake some of the smaller parts of the repairs.
If you still want to go ahead after all is said and done don't be afraid of offending the vendor or upsetting the vendor, yes a win-win is the desired outcome but your financial future is what you are setting up now. I don't think I've met anyone who got into property investing to make friends……
Good luck, thanks for letting me learn about termites
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeOK. Reassuring comments there, DWolfe.
So the plot thickens.
I got a call from the real-estate agent this afternoon. They’ve been told by the owner that the construction is a steel frame, and on this basis, doesn’t need an invasive Borer-scope done on the place.
This in itself is interesting. Apparently they have no proof of it though, so it’s been requested by the building + pest people we’ve hired.
So the story goes, steel frame homes are impervious to the ravages of termites, structurally – but I am unsure about how all of this works.
We’ll see what happens!
z
Well! The owner must be right so there! Beware….. I would run a mile with my barge pole dragging behind me if they had no proof, no proof was obtainable and there looked like major structural infestation. Are you able to tell or find out from the general era the house was built as to whether they would have used steel? Just for more info for you before the pest guys get back to you.
You've gotta love it when they say to you hey you don't need to do due diligence coz Bob reckons it's fine. Thanks for keeping us updated and somewhat intrigued.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeOK.
I’ve just got an SMS from the real estate agent.
The owner has crawled all over the roof (and inside it) to prove that the house is indeed a steel frame. They are sending the photos to the building + pest inspectors to prove it.
Waiting on the deliberation from the building + pest people, plus the quotes from building + pest to repair/fix the problems with the house, so far.
z
I can confirm what Forest Lake PM said about the construction. The people who did the landscaping contract are family friends of ours. The termites in Forest Lake are there to stay (cos they were there first!)
It sounds very expensive for Forest Lake. There's heaps of property in and around that area and also new developments like Springfield and Springfield Lakes nearby. The house there are really crammed in so there's heaps of stock there. And all that separates Forest Lake from Inala is a fence at the back of the Forst Lake Estate.
The plus points are that all the prisons, and large psychatric hopsital are nearby and a ot of people who work there also live and rent in Forest Lake, So if you find a cheaper place, I would assume you would have very low vacancy rates.
Best of luck with whichever way you decide to go.
Cheers
PHi all,
Well, the story continues. The building + pest inspection people called me back. The photos prove that the main structure is indeed steel, but he’s also told me not to be fooled/have the wool pulled over my eyes by the owners/real estate agent. According to him, given the damage has been found in door jams and architraves, he is still obligated to carry out a more invasive borer-scope inspection.
We’ve requested this. Better safe than sorry.
So much suspect dealings and dishonesty!
z
See it is at this point I would probably start thinking about when I would pull the plug. (Yes I know you have spent money and time and effort)
The vendor and agent have a vested interest in getting it sold. You offered asking price so they are going to be reluctant to let you get away and have to explain why the sale fell through and get offered something way lower by another buyer.
Do not lose your cool. Let them do and say whatever they like then just get the facts. Don't be ruled by emotion, remember your goal which is way more important than one single house.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeQuite. Well said DWolfe. You are not obliged to do these people a favour and take their house off their hands. I urge you to remember that one of the big strains on relationships these days is financial woes. Don't introduce financial strain to your marriage by buying badly. Forget about the needs of the vendor and think about your needs.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I too am a resident in Forest lake and I would have to agree 429k for a 3 bed 2 BR sounds a bit rich to me, even with a pool. 14 years puts it as one of the older homes in the area given my PPOR is 10 yrs old. Ignore the vendor and REA, you are the one who is investing your money, not them. Termites are here and as someone said before me, they were here first. That doesnt mean every house in FL has them, I know mine doesnt and wont hopefully.
For 430k I would be thinking you could get a nice 3/2/2 on a decent sized block or even get into a 4/2/2 and certainly better than 14 yrs old.
My 2c worth only….All,
Well, we got game. We told them $430k was too much, and offered $415k in negotiations (based upon the fact that termites had once been there, and that we’d need to do some things to some guttering etc).
They didn’t like that, at all – so we walked away. Days later, we got a call from the real estate agent saying they’d be happy with $423k. We told them it was still too much and that they were not being realistic.
Days later, they said $420k. We said still too much. We told them $416k. They said $419k. We said $418k.
Done
.So, I think we did OK?
z
I always stand on my offer….
If they started to come down the price.. could indicate that they are desperateStick to your intial offer
.
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