Your initial offer should detail your conditions (settlement date, deposit amount, B & P, finance etc…). The other clauses involving longer settlements etc… is your call but it might unsettle the vendor and compromise/confuse your offer.
Just make sure your Conveyancer/Bank/Broker can settle by your chosen date and go for it!
Good luck
Tim McGrath, Tick Mortgage Solutions
Blackburn North
(03) 9877-7077 | [email protected]Ok I’ve just found out that the place has already been repossessed so the bank would be trying to clear the debt. They owner purchased in 2007 so I’m assuming they would have only paid about 10k off the principal so the asking price is probably close to the debt owed on the property. Is that would you all would make of it? Also are there any other factors that come into play other than price in this instance? I’m assuming a standard settlement and a price that would cover the debt would be what the bank is really after? Any thoughts?
The bank has a duty to the owner to get the best price possible for them or they could be held liable. Therefore they will want 'market value'. This is usally achieved by going to auction – which is properly advertsied and held.
Also, if the property has been repossessed then they would have been considerably behind in their loan, add on the expenses and legal fees and it could be a fair bit higher than what they paid for the property.
You might also find it hard to negotiate with a bank.
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
Yes I'm thinking of offering asking price if this is the case. The place was on the market from about May then went to auction in September and has been dropping in asking price ever since then.
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