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General => General Discussion => Topic started by: WilSurf on February 06, 2014, 10:02:40 AM
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We are selling our house and lots of people have come through the door for a viewing.
What I don't understand is that some are offering way under the "Price from xxx" price.
Are they thinking they can sit on the front row for free?
I know it is only the first week and we have 3 offers on the table of which one is close to what we want as a minimum, but we have put in an offer on another house.
That has been accepted but it is subject to sale of our house.
I want to take the trailer and go..............
Sorry, only venting my frustration.
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No to be honest it is market driven forces
I dont know your situation and you may be desperate to sell or your estate agent has jacked the price up and you have dollar signs in your eyes so my first offer will always be so low it will make me even cringe.
I know it sound cold but you as the seller have an emotional interest in the item whereby me as the buyer do not
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given you have had an offer close to what you would accept in the first week i wouldnt be complaining.
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What I don't understand is that some are offering way under the "Price from xxx" price.
There is your mistake right there.. .
I had a Rant about this a while ago.. Your mistake is not telling people what you want for the house.. Telling them FROM XXX - of course they are going to offer less or the base amount
If you want $500,000 say it .. don't say FROM $480,000 cause nobody in their right mind is going to offer what you want - they want to pay as little as possible. To me your wasting everyones time.. Yes estate agents will say BUT IT GETS PEOPLE IN - yea big deal.. 50 people who are on a different mind set to yourself.
You wouldn't advertise your car from $10000 and expect to get $45,000 for it. Yes heaps will come looking at it...
Just tell people - I want $520k - lets start there. and you will get your $500k, and buyer will feel he got the deal of century
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You will get for your house what someone is prepared to pay - obvious but true. Since you have signed a contract to buy another house subject to the sale of yours I imagine that you have to get a particular amount for yours to make your purchase contract unconditional i.e. if you don't get any offers above $xxx,000 then you can tear up the other contract. Also I expect there will be a time limit as well - the person you are buying from won't wait forever whilst you refuse offers.
Is the offer you have had enough to allow you to complete your purchase contract? If it is you have a moral (if not legal) obligation to accept it even if it isn't as much as you hoped for.
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I'm with lost.
When we sold our house middle of last year we had agents wanting to put "Offers Over" etc...
We went with a firm figure. Like Lost said let people know what they are in for. Our firm figure was also above our minimum which allowed the buyer to feel good (they managed to get it for $10k less) and us to feel good because we put it on $20k over our minimum. To explain we let the real estate do that for 1 week only, turns out there were three offers within 4 days, one of which we accepted.
Bunyip
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3 Offers in the first week, indicates you have something desirable. It won't take long.
I think the message has to be clear to the Agent....... You can instruct him to inform clients that the minimum his client will entertain is $xxx, get him to hand client a comparable sale list.
If at all possible.... don't let your agent know you have committed elsewhere, most (not all) will see that as an expressway to a quick sale.
And although I do not work in residential real estate, I have been a licensed agent for over 20 years.
PS: I'm not a fan of offers over, like others have said, all you will get is the minimum.... A fair and reasonable asking price is far more beneficial.
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Cheers guys.
Our agent is the one who sold us the other property.
It is also in their interest to sell ours as they will get 2 commissions.
We have done our figures and we could buy the other property with the maximum offer we have now.
And yes, we have an "emotional interest" but looking around in the suburb for houses for sale, there are more at higher prices which doesn't look that much better.
But I think i should be happy that there is interest and people are putting in an offer after the first home open and private viewing.
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but we have put in an offer on another house.
This is where you lose your bargaining power to a degree. The buyer does not have to buy - you have to sell.
Does your agent know you have put an offer on another place? If so then I would suggest that the buyers know this as well.
My 2c is remove the offer on the other place. Sell yours without pressure - then buy. If that place is still available you are in a better position to bargain.
We have just agreed on a price with a seller that is $135,000 under what they had it listed at. Simply because we had sold and are in a bargaining position. They need to sell - we can buy and fit in with their time line of sale.
Good luck and hope it goes well. :cheers:
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Cheers guys.
Our agent is the one who sold us the other property.
It is also in their interest to sell ours as they will get 2 commissions.
We have done our figures and we could buy the other property with the maximum offer we have now.
And yes, we have an "emotional interest" but looking around in the suburb for houses for sale, there are more at higher prices which doesn't look that much better.
But I think i should be happy that there is interest and people are putting in an offer after the first home open and private viewing.
Don't look at the prices of other homes for sale as they may be overpriced, you need to look at what prices other homes in the area have sold for. Those other houses you are looking at for sale could sell for a lot less than they are advertised at. A house is only worth as much as someone is willing to pay for it.
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I agree with Lost and Bunyip. This "offers over" marketing strategy may work for some but you end up with 50 people looking at your house when only 10 of them actually had the money to pay your asking price.
To get offers in the first week is a good sign.
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From my understanding your offer on the other house subject to sale, someone else can put in an offer without that condition and buy that property from under your nose.
Unfortunately that creates more pressure on you again.
Like others said, 3 offers in a week is great, just hold on for a bit!
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Sometimes your first off is going to be your best offer.
I'm with lost and others here. I hate the buyer enquiry ranges as I'm only going to offer the minimum not the maximum.
I think you are in a bad position, you obviously have fallen in love with the property you have made an offer on before you have sold you own property. You have just broken the 1st rule of real estate.
Withdraw your offer. Sell your place for the price you want and then buy when you have cash in the bank. Why put all that stress on yourselves? Unless you are in finantial position to pay cash for the new place, don't take out bridging finance.
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Selling first is a double edged sword. Sure you are cashed up but that only happens after settlement and settlement day generally gives you only 48 hours to be out. Where are you going to live while searching for your new house.? That might take months.
I agree with Lost. Do not put it on the market at "offers above$xxxxx" as buyers will test the water below that mark. Put it on slighty above what you want and offers normally come in slightly below or around what you would hope to get anyway. We recently sold our place and the first offer was cash at $10,000 less than our asking price. By a stroke of good luck someone came in 2 hours later before we signed the first offer agreeing to our asking price but subject sale of theirs. First cash buyer upped theirs by $5,000 and subject sale person then offered us $7,000 more than our asking price ;D. Sure it took another 6 weeks for them to sell but that suited us as we had 15 years of packing.
Having 3 offers so quickly says that your place is desirable. You should get your money in a rising market.
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We have a real estate that constantly advertises houses as "Express Sales" and tells us to "Make an offer". If I don't know what their ball park figure is ther eis no way I am going to make an offer, and there are plenty of places around that do give a price so these guys are missing out on my consideration. I will notplay their game, every time you want an indication you have to call them and ask.
For those with a NSW real estate license I presume that if I ring and ask what the asking/offers over price is they would have to give me something, they cannot just tell me to make an offer? Is this correct?
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For those with a NSW real estate license I presume that if I ring and ask what the asking/offers over price is they would have to give me something, they cannot just tell me to make an offer? Is this correct?
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Correct
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Maybe worth Auctioning the house.
Mark
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Selling first is a double edged sword. Sure you are cashed up but that only happens after settlement and settlement day generally gives you only 48 hours to be out. Where are you going to live while searching for your new house.? That might take months.
Exactly.
In the suburb we want to move in isn't much houses for sale, unless you have $800k or more.
Selling our house first means that we could be end up with a buying a house we don't really want.
Renting in between is not an option, as we also have an investment property in VIC.
That might have been not the best idea after all.
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Theres an even worse way to go than Offers over.
Mate was looking at a house that they had Offers By XXX date!!! So you had to put in your MAX price without being an auction. You had no idea if you were successful until that date - which was 2 months from memory!
No indication if you were in front or last bidder.. Talk about ****ed up.
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We never look at house where no price indication is mentioned.
You have no idea at all.
Today will be another couple going through the house.
I know it is still early days as it has had only one official home Open last Sunday.
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Just because I come from the school of 'trust no one', have you sighted the offers on paper, do they have contracts?
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Just because I come from the school of 'trust no one', have you sighted the offers on paper, do they have contracts?
..x2
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have I hit this right? One home open, three offers including one close to acceptable?
mate, as corporal jones would say: don't panic, don't panic.
Home buying is a pain which is why I have been living in the same place for 20 odd years. But I have seen plenty of friends and relies go through the process.
When you have had four home opens and no one turned up to the last one and the agent doesn't return your calls, that is when it is time to start worrying.
And what is the worst that could happen? You might miss out on a house you really want to live in.
And there might be a better one next week.
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And what is the worst that could happen? You might miss out on a house you really want to live in.
And there might be a better one next week.
exactly.
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Use the offer you have to renegotiate the $$$ on the contract you have put on the other place.
Get the agent to tell the vendor of the house your buying that you haven't achieved the price you need to change over and will they accept xxx dollars, and that you can go unconditional on your offer once the offer on your place is unconditional, so they get to move along faster as well.
All you doing is shifting the pressure back to the agent and the vendor but it may well work.
Good luck. :cheers:
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Use the offer you have to renegotiate the $$$ on the contract you have put on the other place.
Get the agent to tell the vendor of the house your buying that you haven't achieved the price you need to change over and will they accept xxx dollars, and that you can go unconditional on your offer once the offer on your place is unconditional, so they get to move along faster as well.
All you doing is shifting the pressure back to the agent and the vendor but it may well work.
Creative thinking, you should be a real estate agent, oh wait ;D
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Theres an even worse way to go than Offers over.
Mate was looking at a house that they had Offers By XXX date!!! So you had to put in your MAX price without being an auction. You had no idea if you were successful until that date - which was 2 months from memory!
No indication if you were in front or last bidder.. Talk about ****ed up.
I did this to sell my last place. 'Sale by set date' it's called. 2 months is way too long IMO, ours ran for 3 weeks and in the last week we had 4 firm offers. All within 15K of each other and 2 were 5K above what we wanted. Took the highest one as the settlement suited us.
worked well... at first!
Offer was subject to a building inspection. no worries, I'm a chippie, I know house is structurally fine.
Inspection done, I was there, all seemed to be good and then don't hear anything further from the buyer until the last day of the cooling off. Submits in writing to the agent they are declining due to substandard fencing and aging (outdated) bathrooms! but are willing to put a new offer in of 10K less to compensate the work required. Clown thinks he's buying a used car and using an RACV check as negotiation.
I'm stressed, as in the meantime me and my partner have made an offer on another place. Agent called a lady who missed the original deadline, but was super keen. She offered 5K more than the first accepted offer. :cup:
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3 offers on the table. In Queensland that is a multi offer and each buyer is asked to submit their best price and their best conditions knowing that other offers are being tabled. Each buyer is unaware of the other offer amounts.
That will tell you what buyers in the market will pay for your home. All offers are on a contract.
Mark
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That sound interesting Nomad.
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I did this to sell my last place. 'Sale by set date' it's called.
That's the one
That sound interesting Nomad.
The only way to go for a seller. But you'd be a moron to play it if you were a buyer.
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The only way to go for a seller. But you'd be a moron to play it if you were a buyer.
Actually its quite a common technique in commercial . A buyer will conduct a due dilligence that can be very extensive (and expensive) and then come back at the end of that period and change the price or withdraw. Usually a vendor (and the agent) have invested significant amounts of time into the deal and as such a new unconditional contract is usually entered into at an adjusted price.
Cheers Nomad. :cheers:
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We just sold an investment property. Agent suggested 'offers over' for a reason I can't recall we agreed and set a price 10-15k below what we wanted. The market had just started going silly and we had plenty of offers, $5k below target, on target, 10k over so we said yup, they got inspections etc and before the contracts went through we got another offer at almost 30k over the target, all in the space of about 3 weeks. Agent had told us normal sale time is about 6 weeks.
Offers over can work, but it needs to be a sellers market where the buyers are lining up. We were lucky enough to get in before everyone else listed their houses for all the low interest rate buyers that are around.
3 offers close to target is a good start and it's early days.
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Get the offers on paper then negotiate them up from there.
If they are indeed real. Most agents want to let the seller know there is some interest in the property straight away to keep the seller 'on the hook'.
And yes I agree, the 'offers over' is a stupid idea. But helps the agent get you accustomed to a lower price.
I rate agents just above a used car salesman and just below a new car salesman ....... Never trust any of them.
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I may have been extremely lucky but under the agents advice we listed our place at what it was worth on a Friday, had inspections the following Tuesday, negotiated Wednesday (bugger all difference in the end) and had a contract signed on Saturday.
Rod
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what I don't get is the pending finance clause..........you can either afford the house or not. if you are shopping around without a clue of what you can afford why are you out there. by the end of a phone call to my financial advisor I would know exactly how much I could offer
em happy with building inspection
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Even with finance pre approval banks still want valuations etc as a check to make sure you are not a wood duck and paying way to much for something and risking their money.
I think the hole cooling off thing is a farce. If you sign a contract why should be able to get out of it simply becuase you change your mind or find another house you like better.
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Had a client once put an offer on a unit. Asked 3 times if he wanted subject to finance and said no. Put down $15k as a deposit. When unit was due to settle in a week he advised he had Pre approval from a bank, went to the bank hoping to get the money and they changed their mind and said no to finance. Apparently the person at the bank who approved him went on holidays start after he went to get his finance.
Result the contract crashed and he lost his $15k deposit.
I agree cooling off periods are too long in Qld being 5 days. Regarding finance some buyers would call the bank and get a Pre approval over the phone. Telling some porkies to the bank and go off looking to buy a house. They put in an offer with a 21day finance clause and get declined. The problem is the banks do not advise the agent till the 21st day of the finance clause that finance is declined.
Mark
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Even with finance pre approval banks still want valuations etc as a check to make sure you are not a wood duck and paying way to much for something and risking their money.
I think the hole cooling off thing is a farce. If you sign a contract why should be able to get out of it simply becuase you change your mind or find another house you like better.
Under the standard contact used by most agents in WA there is no cooling off period. Once offer is submitted and signed by vendor that's it.
Sure you can insert conditions, subject to sale, finance approval, various inspections, but you can't simply change your mind.
What are the cooling off periods in other states.
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There was another viewing yesterday afternoon.
The range of offers (told by the agent) is from $30k below to $5k below what we think it should be.
The frustrating part is that my wife has to keep the place tidy everyday and we can't find our stuff anymore. :D
A house a few numbers up went on the market a few days after ours and is under offer. I have asked our agent if she could find out for how much. That will give us a directon I guess.
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I am stumped, is the agent presenting the offers on a contract or verbal.
Some agents ask the wrong questions , they ask what do you think the house is worth when they should ask if you could buy the house at your price what would it be and put that on a contract.
Mark
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Don't know how it works as I am not a real estate agent, but we had to sign a contract for sale from REIWA with the purchase price, conditions, deposit etc.
This was presented to the seller, who signed it and we got a copy of it.
I assume the agent will present 3-4 of the same document for our property with the purchase prices and we either agree or don't.
But I will see tonight.
She told me verbally over the phone what the offers were.
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I call bullsh!t on the offers, if they're verbal and not on paper.
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They are not buyers, a good agent will present offers in writing. Any one can say I think it's worth this to please the agent.
Ask your agent you want all offers in writing so that you can negotiate.
Mark
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As said, that will happen tonight.
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Just a note on Pre Approvals from banks.
Most are not worth the paper they are written on. Have you ever wondered how the Big 4 banks can offer you a Pre Approval in 5mins, its because the list of conditions is so long you may as well start with nothing.
Your main concern at the moment will be the valuation, some valuation reports I have seen come back lately really make you wonder if anything is actually looked at or whether they have a dart board with numbers on it.
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The agent came to our house and told the full story.
A couple of "interested" gave her an offer by text message which according to her isn't good enough as it has to be written on paper.
A few people were interested but never came back.
The remaining 2 put in an offer of which 1 was very low. She up-ed it a bit but couldn't match our expectations.
The 2 was almost there and could up it to match and we accepted it.
All good now, our house is under offer.
Thanks for your time and suggestions.
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Excellent news, hopefully they come through with the goods!
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Well done, sold in a week! Just like old Jonesy said, don't panic. Hope the rest of the process goes smoothly.
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Congrats Mate, sold in a week is fantastic
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Congrats Mate, sold in a week is fantastic
x2
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Well done Wilsurf.
Now the fun of moving house begins.
:cheers:
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Now, for me, I'd be cranky if my house sold so fast. I'd be constantly thinking I'd given it away..... ;D ;D
Of course, the right buyer with the right money could spot your house a day, or a year after you've listed it. So well done Wilsurf.
On another note, I reckon Australia should move to Dutch Auctions for real estate. I think it gives a better idea of real value (value=what someone is willing to pay). You can still apply a reserve price.
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Now, for me, I'd be cranky if my house sold so fast. I'd be constantly thinking I'd given it away..... ;D ;D
Of course, the right buyer with the right money could spot your house a day, or a year after you've listed it. So well done Wilsurf.
And all your so called friends would be telling you just that. same as when you sell, if you accept an offer which matches the asking price you should have been asking more!
Once read an estate agent describing his job as a mix of helping people sell a house for much more than it was worth and then helping them rip off some poor soul who was selling,
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Got that wrong. Meant to saynsame as when you buy and the offer is quickly accepted, you obviously have offered too much!
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The saga continues. :'(
Our loan for the new property has been conditional approved.
It seems that there is a caveat on our investment property in Melboune.
Now the bank asked us to have it removed or gave them a satisfactory answer.
I called the settlement agent when we bought that property in 2010.
They had no idea and suggested to call the name on the caveat, which I luckily had in my documentation.
So I called the law firm which name was printed on the caveat.
After being transferred three times and had to spell my name three times, someone was able to do some digging.
She called back later and told me she had found it and if I could pick it up. Well, Perth to Melbourne isn't easy for pick up a document.
So they will post it to me after I emailed her my address details.
I did ask her to have it electronically sent to my email as well to speed up the process. Hopefully she can.
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The saga continues. :'(
Our loan for the new property has been conditional approved.
It seems that there is a caveat on our investment property in Melboune.
Now the bank asked us to have it removed or gave them a satisfactory answer.
I called the settlement agent when we bought that property in 2010.
They had no idea and suggested to call the name on the caveat, which I luckily had in my documentation.
So I called the law firm which name was printed on the caveat.
After being transferred three times and had to spell my name three times, someone was able to do some digging.
She called back later and told me she had found it and if I could pick it up. Well, Perth to Melbourne isn't easy for pick up a document.
So they will post it to me after I emailed her my address details.
I did ask her to have it electronically sent to my email as well to speed up the process. Hopefully she can.
Strewth mate, that's bad luck.............
Don't waste your money on a lotto ticket, or perhaps you should and try to change your luck....
Hope the journey gets easier for you.
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When you get it shoot me an email with the details....it could be a simple stuff up but it can also be a PIA to remove if need be.
Cheers Nomad.
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We are selling our house and lots of people have come through the door for a viewing.
What I don't understand is that some are offering way under the "Price from xxx" price.
Are they thinking they can sit on the front row for free?
I know it is only the first week and we have 3 offers on the table of which one is close to what we want as a minimum, but we have put in an offer on another house.
That has been accepted but it is subject to sale of our house.
I want to take the trailer and go..............
Sorry, only venting my frustration.
I can understand why it is so frustrating, a sign of the times at the moment. About to embark on a Similar adventure. Expecting the same.
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Good news :cheers:
The caveat is withdrawn, I have the electronic copy, the original will be snail mailed and all forfree.
A good ended after all.
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Good news :cheers:
The caveat is withdrawn, I have the electronic copy, the original will be snail mailed and all forfree.
A good ended after all.
Good to hear. ;D
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Good news :cheers:
The caveat is withdrawn, I have the electronic copy, the original will be snail mailed and all forfree.
A good ended after all.
Great. :cup:
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Funny you should mention this, we are currently looking a buying a house in a small country town, the type where you blink and you will miss it, the type with one shop and bugger all amenities.
I cannot believe what some of these people expect to get for these properties. They think they can get Perth prices or have obviously paid way to much for them in the first place and think that there is a sucker on every tree.
One house wanted 380,000, the average sale price for that town was 160,000, the property had been on the market before and then taken off and then put back on some months later.
In another town, 3 hours from Perth, same type of deal, the houses had been on the market for quite some time, with no offers. They are wanting quite a lot above what the average sale price is. I put in a cash offer for 70,000 below their asking price and haven't heard back. I would have been prepared to move a little on the price, but they didn't even want to negotiate.
The biggest thing for me is resale value, I need to know that I will be able to resell the house in a timely manner if something happened. In these types of towns, buyers don't drop out of the sky, biting at the bit to put in an offer.
At least we have the luxury of being able to bide our time, maybe in 12 months they might be a little more accommodating.
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Funny you should mention this, we are currently looking a buying a house in a small country town, the type where you blink and you will miss it, the type with one shop and bugger all amenities.
I cannot believe what some of these people expect to get for these properties. They think they can get Perth prices or have obviously paid way to much for them in the first place and think that there is a sucker on every tree.
One house wanted 380,000, the average sale price for that town was 160,000, the property had been on the market before and then taken off and then put back on some months later.
In another town, 3 hours from Perth, same type of deal, the houses had been on the market for quite some time, with no offers. They are wanting quite a lot above what the average sale price is. I put in a cash offer for 70,000 below their asking price and haven't heard back. I would have been prepared to move a little on the price, but they didn't even want to negotiate.
The biggest thing for me is resale value, I need to know that I will be able to resell the house in a timely manner if something happened. In these types of towns, buyers don't drop out of the sky, biting at the bit to put in an offer.
At least we have the luxury of being able to bide our time, maybe in 12 months they might be a little more accommodating.
Get a valuation on it for a couple of $100 and present that with the offer.
Extended selling periods and "valuation by neighbour" are typical anywhere and most people have no f'ing idea IMHO.
Cheers Nomad. :cheers:
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I am amazed that they seem to think they can get these high prices. You don't have to be a rocket scientist to work out there is not going to be people knocking down your door to buy in these types of towns.
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I was in the market 2 years ago.
We came across a house which we could see future benefits in.
Now I was no sucker. They had advertised well over the average going price. Which I wasn't going to pay. So we put in a a fair offer. We got a very blunt NO back. No problem we walk away. Low and behold after being on the market for another month we got the call to come have another look. So we do. They then ask ask for another offer. No problem we offered $5,000 LESS then or original offer. Which I felt was still a good fair price.
Again no go, no problem.
It's stayed on the market for another 2 months. They became desperate and ended up selling for a further $15, 000 less then my original offer.
So as said sometime your 1st offers will be your best offers.
Joe
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I rate agents just above a used car salesman and just below a new car salesman ....... Never trust any of them.
We are not all like that! Some of us work bloody hard and are honest, so honest that it costs us listings!!
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I really can't believe how much crap we are going through trying to buy a damned house.
As mentioned I was looking at some country properties, along the way I had an agent contact me in regards to a house they had listed, it was one that we felt was not what we wanted.
Anyway, there were 3 other properties in the same town, two of which we really liked but they were asking too much, So I spoke to the agent and explained that we were definitely interested in the two houses and we were prepared to look at other towns if needed. I explained that we were keen to buy a house and that we were cash buyers. I asked if she could work for us and she agreed.
They wanted $3,000 to act as our agent, which I thought was a bit steep but anyway. I agreed because she was fairly local to the town, plus other towns in the area and asked her to send me the contract and I would look it over and if ok, would sign it and send it back.
They obviously don't need the money or want the work, because that was nearly 2 weeks ago and I haven't heard a peep from them.
So we have sellers that think they own Buckingham Palace and agents who really don't give a rat's, because they seem to have plenty of money.
I might just buy a van and hit the road if it all gets too hard.
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GraemeL,
I wouldn't be paying an agent to find you a house.
If they find you one that is not their listing they can get a referral fee from the other agent.
Look on realestate.com.au for the towns you like, pick up the phone, and put in offers on the two you do like at a price you are happy with. You never know what the owners circumstances are and what they would be willing to take, and no doubt they just might be happy that they are receiving an offer at all.
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WilSurf,
That is good news, hopefully things will go smoothly for you and the best of luck with your new home.
I too have had some luck,
There is one house that we really liked, it is the one I offered $70,000 below the asking price.
Anyway, the owners have moved down to Perth as of last week. The agent acting for us, contacted me to say that, she had spoken to the owners and they are prepared to negotiate the price, but that's not all. I had originally stated that any offer would be subject to various reports on the property.
The owner is also prepared to pay for those reports, which are, Builders Report, Electrical Report, Pest Report and have the septic emptied and inspected.
He has asked for us to put in an offer in writing and they will seriously consider it.
Fingers crossed :)
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Looks like they are desperate.
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Don't pay a normal agent to work you. Their job is to get the HIGHEST possible price for the vendor. Exactly how it should be, as you would want that if your were ever selling! Put your offer in writing with a time strict limit, in Sydney 48 hours...maybe a bit longer for rural...say, 4 days. Like callmejo says offer lower, again with a time limit, if they come back after your offer expires. You can use a "buyers agent" to help you find and negotiate on properties. But I would only use a bon a fide buyers agent who wasn't also selling properties...which is a total conflict of interest. see here for buyers agents http://rebaa.com.au/ (http://rebaa.com.au/)
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The owner is also prepared to pay for those reports, which are, Builders Report, Electrical Report, Pest Report and have the septic emptied and inspected.
That's great - but make sure that you get to specify who will conduct those inspections to ensure that they are not getting in someone they know to glossy up the report so the sale goes through.
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WilSurf,
That is good news, hopefully things will go smoothly for you and the best of luck with your new home.
I too have had some luck,
There is one house that we really liked, it is the one I offered $70,000 below the asking price.
Anyway, the owners have moved down to Perth as of last week. The agent acting for us, contacted me to say that, she had spoken to the owners and they are prepared to negotiate the price, but that's not all. I had originally stated that any offer would be subject to various reports on the property.
The owner is also prepared to pay for those reports, which are, Builders Report, Electrical Report, Pest Report and have the septic emptied and inspected.
He has asked for us to put in an offer in writing and they will seriously consider it.
Fingers crossed :)
Is this agent acting for you or them?
Is it the same agent you put your first offer through?
:cheers:
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The agent is acting for us, they have no interest in the house and never have.
I am going to specify in the offer, that I choose the companies to perform the inspections. I will also be stating that they must be licensed and carry Professional Indemnity Insurance.
With the selle agreeing to pay for the reports, tells me two things.
1. They are eager to sell, which I knew anyway from the first visit.
2. They aren't trying to hide anything and are confident the reports will not show anything out of the ordinary.
I also have to find a solicitor, because I want to make sure the wording of the conditions is correct and I don't shoot myself in the foot.
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Cool.
You should also calculate your offer on the basis that they are not paying commission.
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I spoke with our agent yesterday and asked about the Building Inspection report.
It was all good, although the buyers were confused and asked for an electrical inspection.
In the report, remember it is a Building Inspection for structural integrity, it was mentionedthat the down lights need to have a safety cap to prevent the insulation to touch the down light.
However this became a law/rule in 2006 and our house was build in 2005. Plus most of our down lights are converted to 9W LED.
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Cool.
You should also calculate your offer on the basis that they are not paying commission.
Thanks for the tip, I have been trying to research as much as I can in regards to conditions, reports etc.
There is a hell of a lot to take into consideration.
WilfSurf, I but you are glad the report is good.
It seems a lot of companies don't really go out of their way when performing them and tend to take the easiest route.
I intend to make sure the reports I have done include a huge list of things and they will definitely have to earn their money. I don't want any surprises later on down the track.
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Is he from QLD i'm led to believe they have electrical inspection as well.
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I agree with lost way back on pg 1 ... I sold my last house 350k we listed it at 399k I was happy to get 340 anything over that was a bonus. At 350 the owner thought they got a bargain. A firm price is always a good place to start
Cheers chippy :)
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Damn...we're about to get on this roller coaster, and here was I hoping it'd be straight forward :o
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Damn...we're about to get on this roller coaster, and here was I hoping it'd be straight forward :o
If there are enough buyers around auction it and it probably will be as long as your price is realistic. Cheers. :cheers:
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Thanks Nomad.
Cheers
Karen
ps. Glad everything worked out for you WilSurf.
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Got the original caveat withdrawal in the snail mail yesterday.
Bank happy, me happy.
Can't wait till we are over.
What is this about insurance? They tell me that I need building insurance for the new place but it isn't ours yet.
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As for insurance
Here in Vic once your purchase is unconditional then you HAVE to buy the property so for example if there was a fire and the house burns to the ground then you are still required to complete the purchase and buy a burnt out shell but if you insure it then at least (depending on your insurance) it will be rebuilt.
From what I recall from our house move last year it wasnt that dear as you will only be paying extra for the 60/90 days you need to insure 2 propertys after that the insurance just continues once you move in, dont forget to ask how your contents are covered during the moving process
Cheers
Grahm
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Spot on Nisnav.
Also very important to get the insurance amount correct. Allow about 20% above cost of replacement to allow for demolition, architects / draftsmans fees etc to rebuild.
You can jump on websites like BMT quantity surveyors and use their calculators to get a rough estimate, or if you get a building inspections ask them for a rough figure for insurance, or if you finance the valuer will generally provide the bank with a replacement insurance estimate.
:cheers:
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Once you have paid your deposit you have an equitable interest in the property, hence why you need insurance.
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Well we are going back to the house to do another inspection on Saturday. It will be empty, so it will be easy to evaluate everything and get a better idea of what the house is like.
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Termite inspection done to our new property yesterday.
Haven't heard anything yet, I assume no news is good news.
Our broker tells me that I have to insure from the settlement date.
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Our broker tells me that I have to insure from the settlement date.
Personally, I'd insure it now
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Hopefully the report comes back ok.
As mentioned, I would insure it now, the cost should be negligible, but the benefits may turn out to be huge if something does go wrong. Also look at your Contents Insurance and see if you are properly covered whilst moving.
It is always better to be prepared.
Good luck and I hope it is a nice smooth transition.
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The real estate agent told me that they found live termites in the wooden fence and in three palm stumps in the back yard.
The inspector has applied treatment
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If you look hard enough you'll find termites in every house in AU
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Not in my house ... Better outside than in though !
Cheers chippy :)
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I used to do pest control many years ago.
It is very common to find termites in yards and fences etc. It doesn't mean your house has them, the nest maybe several houses away.
It is always wise to store any wood and other items that can be attacked, up off the ground and never near your house.
As long as the pest inspector has done his done right, you should be ok.
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Received the report and all is good in the house.
I got an email from the agent that the buyer was concerned about the warranty on the pool.
What? Is he trying to pull out?
I don't even think there is a warranty after 5 years of the installation.
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When are they due to go unconditional?
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Tomorrow is the due date for the loans.
We are ready for our new house.
Settlement is on the same date, not sure how that works out for moving.
Hpefully we can get access to the new house prior as that is empty.
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Received a phone call from our agent.
The buyers bank wants to do an evaluation of our house.
I said to him that the due date for the loan is tomorrow (4pm today as I write this).
They had all these weeks and still not ready.
Aargghhhhh
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I'm going to make a prediction.
I predict that that about in 1 hour prior to the sale going unconditional you will get a call from their solicitor saying "we've just been informed of major problem xyz with the pool/fence/shower and need you to take $10,000 or we won't complete the sale".
If this happens, just say "fine, don't complete the sale then". They are only trying to get more money off in the last desperate hour.
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Received a phone call from our agent.
The buyers bank wants to do an evaluation of our house.
I said to him that the due date for the loan is tomorrow (4pm today as I write this).
They had all these weeks and still not ready.
Aargghhhhh
The valuation is usually the last thing a bank orders throughout the finance period, as it costs them fees.
It was quite common for me to go out and do the valuation on the last day of, or day before the contract was to go unconditional. If the valuer inspects it it generally only takes half an hour or so to do the calculations and phone the bank give them the figure. THe written report is then provided generally the day after.
From what you have explained to me so far it sounds like there should be no problems with it.
Fingers crossed. :cheers:
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Hey WilSurf, how did it all go? Hopefully everything has gone through without a hitch.
We did an inspection on the house we are interested in. there were quite a few things we noticed, some were sort of minor but there were also some that were major. The major is replacing the two evap air con units because they are getting pretty old. As well as one of the hot water systems.
Our agent has sent the seller a list of things that we want repaired/replaced and asked for them to have the inspections done.
So now we sit back and wait.
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The valuation is done and the inspector/validator was going to send his report to the bank the same day.
Later yesterday the agent called me.
The buyer wants to have the pool inspected before settlement since there is no warranty on it. It was installed in 2008.
The agent adviced us not to allow it since it is not a condition of the sale.
It seems that the buyer has read/heard something and want everything covered. Maybe he wants to impress his new-to-be-wife?
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From a buyers point, of view maybe he is just trying to cover his backside.
Which is perfectly understandable, it is a huge outlay and the buyer doesn't want to be caught out with something that may end up costing thousands to repair or replace.
If there is nothing wrong with the pool, what's the harm in allowing them to have it inspected?
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Did he go unconditional?
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Due date now is 12/03, got an extension letter from their bank.
Settlement date is set at the 28th, moving 28th-29th.
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Now, for me, I'd be cranky if my house sold so fast. I'd be constantly thinking I'd given it away..... ;D ;D
About 3 years ago when the market was flat one of my very good mates got quite a few written offers with the best being $8 000 under there asking price. He convinced his wife they should wait and that is what they did. The house was on the market for another 3 months and then the best offer was now $30 000 under the asking price. ($22K less than previous best offer) By then they were both over it and ended up selling the house for $30K under. This couple has since divorced and while the sale of the house wasn’t the primary cause of their split, it sure didn’t help them during their rough patch.
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As the saying goes, the first offer is often the best.
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It looks we were on time.
There are more houses for sale in our suburb now.
Our papers for the bank has been signed, I rectified 1 minor issue which was "picked up" by the Building Inspector: the latch of the pool fence was a little sticky. A few turns of the screw of the latch and it is closing smoothly.
Now i have to get up the attic and check if the insulation isn't touching the downlights. It has nothing to do with the structural integraty of our house and as our house is built before 2006, we don't need the protection caps.
But I will show my good behaviour and will remove any insulation what might be too close to the remaining halogen downlights (only 8 left after coverting the others to LED)
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The second loan-approved-due-date has passed and still nothing.
Now the lender wanted to know if the buyers had paid the deposit. Hello, that was done within 7 days of signing the contract. They have had 4 weeks to had this checked.
Don't know which lender they are using, but it seems not to be one of the bigger players. Our agent told me that the buyer lender is over east.
Hopefully it will come through today.
I asked our agent if there was a penalty for them as they are over their own new due date.
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NEWS FLASH:
The buyer loan is unconditional approved, finally.
Now we can really get into packing as the settlement date is in 2 weeks time, the 28th.
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WOOHOO....Champagne time. :cup: :cup: :cup: :cup: :cup: :cup: :cup: :cup: :cup:
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1 more week to go.
We are getting the garage door opener (!) tomorrow after the final inspection.
That means that we can move some stuff in the garage a week before settlement. That will certainly help as there are many boxes already in our way.
The final inspection for the buyers of our house is Monday.
When moving our internet and telephone yesterday, they told me that I am lucky. Our new house has cable.
That's what we had 10 years ago before we moved to Australia..............
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1 more week to go.
We are getting the garage door opener (!) tomorrow after the final inspection.
That means that we can move some stuff in the garage a week before settlement. That will certainly help as there are many boxes already in our way.
The final inspection for the buyers of our house is Monday.
When moving our internet and telephone yesterday, they told me that I am lucky. Our new house has cable.
That's what we had 10 years ago before we moved to Australia..............
WilSurf,
The only issue with cable I have found is how many others are sharing your segment. I found it to be very slow of a morning and after school. Over night it was very fast.
Most people have moved off cable now and gone to ADSL 2+ so hopefully you will be OK.
Bunyip
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4 More days to go.....
The garage is filling up quickly.
Last Saturday we drove 4 times to the new house and unloaded the LX470 and the Fiesta (!). Yesterday 1 time with the LX and from now on every day at least once.
Saturday is Moving Day.
Friends from our 4WD club are helping out with trailers and a van.
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And the drama continues.......
The buyers lender/bank isn't ready in order to settle on Friday.
And we are all set to move. Friends are ready, utilities have been informed and are switching over, Telstra comes on Monday.
Not happy.
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And the drama continues.......
The buyers lender/bank isn't ready in order to settle on Friday.
And we are all set to move. Friends are ready, utilities have been informed and are switching over, Telstra comes on Monday.
Not happy.
From our experience this is what happens. We were renting our next place so we just moved and let the house settle in it's own time. Took an extra week. The night before the second settlement date the solicitor rang to say he had isplaced a piece of paper that would stop the transfer going through. I made a 7 hour round trip to take our signed copy to him just to make sure it went through.
Good luck and I hope it works out OK with the new place.
Bunyip
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Not good news, can you bill 'em for accommodation incurred expenses etc..
Tell 'em a recent Case Law Decision, under the Wild Bird and Bracken Real Estate Amendment Act allows it. Where a Breach of agreed terms on Sale Contracts occurs.
A Solicitor will see through this, but a seller and Bank Manager probably won't.
Hope it works out soon.
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Ask for a Licence to Occupy. If it is their stuff up then they should be accommodating to it. I work in a Real Estate office & settlement delays happen a lot & a Licence to Occupy is commonly used in this scenario.
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The seller of our new property has agreed to have us moved in before settlement.
But now the buyer had asked the their settlement agent to with hold money because:
1. the alarm system service light was on.
2. hot water system flow is reduced when second hot water tap is open.
What is going on................
that will not happen.
1. Rectified, just had to reenter the date and time
2. That's in every house we lived in but a plumber will have a look at it tomorrow.
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The seller of our new property has agreed to have us moved in before settlement.
But now the buyer had asked the their settlement agent to with hold money because:
1. the alarm system service light was on.
2. hot water system flow is reduced when second hot water tap is open.
What is going on................
that will not happen.
1. Rectified, just had to reenter the date and time
2. That's in every house we lived in but a plumber will have a look at it tomorrow.
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We have moved into the property last Saturday.
Our friends helped us with their utes, Patrols, a van and trailers.
Today (finally) is the settlement. The buyers bank is ready!
I had to fix the hot water system, which was only the replacement of the pressure valve.
But all the hassle you have to do.
Telstra was booked for last monday and we all stayed home as they should arrive between 2-5pm.
Whoever came, no Telstra. Now they will come this Friday.
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We are renting and have just bought a house after 6 months of looking. There isn't a lot of housing stock in certain parts of Brisbane and we were so relieved to finally get a house, that we didn't want to risk missing out by asking the owner to do anything. Our settlement is the 22/4, the day after we get back from a 10 day camping trip over Easter LOL. Given we booked the holiday 2 years ago, we weren't cancelling because of moving house!
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Enjoy the trip, before you move.
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Congrats WilSurf, enjoy your new home :)
We are waiting on the various reports, builders, pest, electrical and sewerage to be forwarded. If they are all satisfactory We will be putting an offer, not as much as they are asking though, about 60k less.
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Congrats WilSurf, enjoy your new home :)
We are waiting on the various reports, builders, pest, electrical and sewerage to be forwarded. If they are all satisfactory We will be putting an offer, not as much as they are asking though, about 60k less.
Would you realistically sell your own home if you received an offer $60k less that what you were advertsing it for?? This is what I would say to you if you presented me with an offer like that in this market. I know you are trying to save a dollar and get a bargain, but as an agent I work for the owner and would tell them not to even consider it and that the buyer was being a douchebag (no offence to you but just giving you a perspective from the other side).
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:D :D
I am not trying to take advantage of anyone etc. This is the biggest investment of our lives, just because an owner may think their property is worth ex amount, doesn't mean they are going to get that for it.
If the market is such that there are plenty of people wanting to buy then you may have a chance, but this is not the case.
I have been able to have a very good look at the property and honestly believe that is all the property is worth, given the location (country) population, facilities and amenities.
There are other things that come into play in such an area, such as resale value and the amount of time it would take to sell, condition of appliances as well as age and the house itself, what needs to be done and also it's age.
If the owner is not willing to let it go for that price then so be it, we have the luxury of not only being able to wait as long as it takes, but also have the option to look at 3 other properties that are available in that area. We are also not set on that particular country town, so our options are wide open at the moment.
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Surely $60k varience is also dependant on the sale price of the property (GraemeL by this I am NOT asking the price) but $60k less than $360K purchase price is a large varience. $60K less when they are asking $1M is a drop in the ocean.
It is all about the context, and as Greme said he has the luxury of options.
We made the classic mistake when we looked this time (despite telling ourselves we wouldn't do it) and really wanted te property we were looking at. In our eyes it had pretty much everything we wanted so we went higher than someone who wanted the house but did not get themselves attached to it.
As it turns out the day before we were due to look at the house the owners dropped the asking price to what we thought the house was actually worth so that worked out well for us inthe end.
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That's the trick, don't get attached to a particular house, keep your options open.
We have been lucky, we have been able to thoroughly inspect the property (empty) prior to making an offer and my assessment, is based on that inspection along with the location and other current property prices that are similar to this one. Plus the fact there are no other buyers at the moment.
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Would you realistically sell your own home if you received an offer $60k less that what you were advertsing it for??
That rather depends on how desperate I was to sell it! If I was sitting on a $500,000 bridging loan and yours was the first offer I'd had in 6 months, then I might well decide to negotiate the offer rather than have the bridging loan interest extend indefinitely into the future.
And the fact that the offer was $60,000 below the initial asking price doesn't mean that it would be the final sale price.
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in a similar boat to Graeme - looking at the country and seeing overpriced properties (IMO).
have placed a couple of offers, but owners aren't budging and neither am I.
a house is only worth what someone is willing to pay - if no one else offers a cent, and I offer a low price, would you sell it to me? if you had the luxury of not selling, then the answer might be no - but if not, you would have to make a decision.
in that instance, I would negotiate with the bidder (via agent) to prove why my house is worth more than they are offering, or throw in some other sweetener.