About to exchange contracts, last minute offer from other buyer

Hi,

My partner and I are in the process of purchasing a property. We had an accepted verbal offer with the vendor including an additional inclusion on the contract. They also requested a 28 day settlement period with no cooling of period as they are very keen to settle. My solicitor strongly advised that we get unconditional finance before exchanging contracts, otherwise it is too risky. After we submitted our application with the credit union, the vendor requested a change to the contract (reducing the price slightly but removing the additional inclusion on the contract - and we would pay cash for that item). We advised that would mean we would have to resubmit the application to the credit union, causing further delay.
The approval on the initial mortgage application ended up taking weeks (very agonising process). We're not really sure why - if the royal commission had anything to do with it, or if they are just really busy. We finally got approved on Thursday (a couple of days ago). We were ready to exchange on the initial offer and then on Friday the real estate agent advised us that they received an offer on Thursday night above ours and invited us to increase our offer. This was very surprising because we had received no indication up to that point that there was another interested party. This property also has already been on the market for more than 6 months so it didn't seem like there was a lot of interest. It seems very unlikely and coincidental that an offer would come in at the last minute after weeks of waiting for finance.
I'm wondering if it's possible the vendor and or real estate agent are being dishonest about this, trying to get us to increase our offer before resubmitting our mortgage application. I get the feeling they think we have access to more money than we do. However, I don't have any other reason to question the integrity of the real estate agent.
How likely is it that there is a last minute offer compared to it being a last minute attempt to get more money?
Also, my feeling is to hold firm on our original offer and request we exchange immediately, waiving cooling off period, although I'm nervous about being gazumped. Has anyone else been in this situation?

 

You have clear advantage with finance pre-approved . Stick to your offer I'll say. . If it's motivated seller and property has been on market for such long time, odds are in your favor. .. But be prepared to lose too...

 

Its the oldest trick in the book - but sometimes it might be true.

 

I think we will stick to our offer on the basis we can exchange immediately. I'm hoping they are motivated enough to exchange on a potentially lower offer

 

Good on you ellik!.. And all the best ...

Let us know how you go?

 

It's a good trick. But isn't it illegal for real estate agents to lie about other offers? And why wouldn't they pull this trick earlier... before waiting for weeks for the finance.
It's possible they took the opportunity now because we were willing to reapply with the change to the contract. It's so hard to tell.

 

Don't let them smell fear. I'd be saying actually I am looking at other properties so would be happy to pull out if the vendor doesn't want to accept my offer no probs happy for it to sit on the market for another 6 months.

Of course, always be prepared could lose it. All depends how good the deal is.

 

I think we did get a good deal on our initial accepted offer, but am reluctant to increase it at this point. I think we will play it cool and stay firm - say we will wait to see what the cooling market is doing and buy later. Either way we are hoping this painful process will end soon, haha.

 

Good deal are like busses. Another one will be along shortly! Personally I'd offer 5k less. I'm one of the ones that would question the REA's integrity.
But I can appreciate your anxiety. Good luck.

 

IIsay it's bull **** sorry.
I would take there bluff and put it back at then. Say we ready to sign today and if they going to take time there time say your offer reduces by 10k per day from your accepted verbal offer.

Tell them your loosing money from 4 days ago so you can't increase your bid.

 

Do they legally have to disclose the other offer to you on request?

 

No

 

So just have to play the game to see if there bluffing?

 

Thats what makes it so fun!

 

Too Shae

 

Any update?

 

Who's Shea?

 

Sounds kinky.