Hi all
I am looking for a house/unit for my wifes sister who is moving here in around 6 months. Her current house is under offer and is due to settle at the end of September. As she lives 600kms away, most of the legwork is being done by my wife and I, and plenty of phone calls. I have finally viewed, due to non-helpful tenants, a duplex half in a good area that looks fairly suitable. The problem is that there was another couple viewing at the same time and the unit has a couple of smallish issues. I can get my sister inlaw to put in an offer subject to the following
Strata being finalised
Building Inspection/Engineers Report
Finance
White Ant Certificate
Having a successful offer on another property (Not sure of wording)
Due DiligenceThe reason for a succesful offer is that the strata has taken 9 months so far and my sister inlaw needs to get settlement before quiting her job and moving here. If that doesn't happen she may struggle with finance because of a new job.
If anyone has any comments or suggestions, please reply
Cheers
John
Hi John
I'd also place a deadline on the offer – ie. offer valid until close of business Tuesday 9th of August 2011.
Not sure if I'd mention offers on other properties – you may lose some credibility and be viewed as a tyre kicker.
Due diligence is an extremely broad concept and I'd be inclined to leave that out for the same reason above.
The finance/building inspection clauses will give you time to carry out more DD.
Hope that helps.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for your reply Jamie
The property has been on the market for a while and the strata has been with the council since October last year. Since the agent is having trouble getting answers as to what work needs to be done to comply with council (the owner lives in another town), my sister inlaw feels she needs to pull a trigger to make things happen. The property is brick & tile and within her price range, minimal maintanence and other properties are older stumped homes with considerable maintanence required.
Cheers
John
Further to Jamie's suggestion, I'd define what close of business is. ie I'd say offer valid till 5pm on such and such a date.
I'd include a clause saying "subject to buyer being able to secure insurance (for the property) that is satisfactory to the buyer"
I'd also be more specific with the finance clause (eg "subject to buyer being able to secure at least 80% finance under terms satisfactory to the buyer")
The last two are very excellent get out of jail free cards
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Please John also be very careful with the building and pest report clauses – many agents insert (to keep purchasers happy) "subject to building inspection" but that is not worth a cracker. You must make these reports "satisfactory to purchaser" or similar. Some agents take the liberty of 'looking after you' by adding 'subject to building inspection with no major structual defects' but that is not much better, and very open to interpretation.
All the best other than that!Cheers
John,
From my experience, I would normally negotiate on price first and then on terms, second. The reason for that is I would like to know if they are interested in my price before I basically consider bombarding them with all the terms and conditions upon my offer. The sooner we agree on price then it won't be a waste of time, basically, inundating them with
terms.A couple of practical points would be that I always use due diligence in my offers. Number 1: I always keep the terms pretty broad so that they are all comfort with them before getting down to the nitty gritty of them. Number 2: in relation to what terms and conditions you want on your contract, once the vendor has agreed on a price point I would voice
your concerns with your solicitor and he/she would write out the correct terminology to include in your contract– if they were interested in the price that you offered.I hope this helps. All the best.
Regards,
Jason Moore
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
I agree with Jason. When you offer you could say "Yes I'm happy to offer $?? with ?? day settlement – subject to building, pest, finance and all the rest of it mate"…ah
and then quietly add the precise wording of your clauses in the written contract.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
