I am purchasing a property and I missed out a couple of properties, because according to the agent, the other purchaser put in an offer with no conditions. To match their offer, I could either offer much more, or remove my conditions (Finance and Building/Pest Inspection)
Is it common for purchasers to make an offer with no conditions? Not even "Subject to Finance"?
A broker told me that banks no longer do Pre-approval but they do "Approval in Principle". How safe is it to make an offer with no conditions? (Building and Pest inspection can be done before the offer, this is not an issue)As long as you have had your solicitor review the contract, prior to submitting your offer, are ready to have/had building & pest inspection & have finance inevitable the bag, and being prepared to walk within your cooling off period.
Your Broker is incorrect some lenders still do full meaningfull pre-approvals however normally such an approval will be subject to a satisfactory valuation and suitably signed purchase contract.
If LMI is required then this will also be an underwriting condition.
As SNM has mentioned as long as you feel the valuation stacks up and your Solicitor has reviewed the Contract signing unconditional is an option which makes it more attractive to the Vendor.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
I have never made an offer with conditions.
You could still pull out within the cooling off period.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Catalyst wrote:I have never made an offer with conditions.Did you buy at auctions or private sale? and how many transactions have you done?
thank you guys..?/ladies)
cooling off period is often 3 days, can bank let you know wether or not your loan is approved within 3 days?
It really depends on your bank. If you have a good relationship, have provided all the stuff they'll want to make the assessment, they should be able to do so. But if it's really complicated, high LVRs requiring valuation etc.. you could struggle with 3 days.
ChristinaM wrote:Catalyst wrote:I have never made an offer with conditions.Did you buy at auctions or private sale? and how many transactions have you done?
Both but you can't have conditions at auction anyway (well I did negotiate 5% deposit prior to auction once).
I've signed 16? pulled out of a couple in the cooling off.
Thank you all for your reply.
Hi Christina,
Depends on your state too. I'm guessing NSW? If so, your solicitor would not 'exchange' contracts until they have confirmation that the finance is in fact unconditional (ie after having the valuation done, you have singed their formal offer – which is the executred loan contract) . As far as no conditions, subject to finance is always wise unless you have 100% cash but anything other than that is up to you. For the record, the last person I saw that was dissapointed for missing out on a house when the successful offer went to a purchaser who made a less but unconditional offer, felt a whole lot better when the purchaser had to borrow some more money to have the place restumped…….All the best with whatever you decide.
Cheers
v8ghia wrote:Hi Christina,
Depends on your state too. I'm guessing NSW? If so, your solicitor would not 'exchange' contracts until they have confirmation that the finance is in fact unconditional (ie after having the valuation done, you have singed their formal offer – which is the executred loan contract) . As far as no conditions, subject to finance is always wise unless you have 100% cash but anything other than that is up to you. For the record, the last person I saw that was dissapointed for missing out on a house when the successful offer went to a purchaser who made a less but unconditional offer, felt a whole lot better when the purchaser had to borrow some more money to have the place restumped…….All the best with whatever you decide.
Cheers
Thank you for the reply. I am in VIC.
Very frustrated now with the process….
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