Advice on putting unconditional offer on a Private sale

Hi all,

My situation is below.

I am looking to make an unconditional offer on a property being privately sold. This is to blow the competition out and ensure I secure the property.

Finance is not an issue as I am well within my preapproved limit and also have cash reserves if required. My concern is building and pest as it is an older property. Having seen the property I don’t believe there will be any structural issues but I am nervous about buying without the building and pest in place as I always get it done.

The agent has clearly indicated that putting an unconditional offer will secure the property, anything with conditions won’t be able to match the competition on it. Period.

My plan is:
1. Put in an unconditional offer
2. Hopefully have the offer accepted as indicated by the REA
3. Once accepted request a building and pest within the 3 day cooling off period
4. If the vendor allows the report and it no major building and pest issues, all is well in the world and I am one happy camper!
5. If the vendor does not allow the report and it is not due to any reasonable reason, cool off within the 3 day time period
6. If the vendor allows and the report has major structural issues (major being the key word) then cool off to avoid a potential money pit

Lets assume point 1 and 2 is done with and not debatable. The answers/thoughts/comments I would greatly appreciate are on below please

3. In your view/experience, will a vendor with nothing to hide, deny building and pest? Would that concern you? (yes I know I am the one going unconditional so its not fair.. I am sorry, just trying to not lose out in a very very hot Melbourne market where I have already lost 4 properties to date trying to put in proper terms for building and pest)
5. Do you see point 5 above not happening or any concerns other than an annoyed vendor and a guilty @#$!# buyer (me)
6. Do you see this not happening or any concerns other than an annoyed vendor and a very sorry buyer (me)

Thanks for your thoughts!

 

Within 3 days sounds smart (if you had all your ducks lined up) although i don't see the agent (or vendor) letting you do it immediately. Once the agent gets your deposit he/she may not even answer your phone calls once you mention "can i send in an inspector tomorrow?".

 

I don't pay the deposit until after the 3 business days cooling off.. I do know that they are perfectly within their rights to take $100 or .2% of property value if I cool off and I am willing to pay that for the inconvenience I'm causing

 

Ok well that puts you in a better position with not much to lose. I like your plan. if you are offering something above others offer, then maybe the vendor will not mind. Good luck with it, hope it goes to plan.

 

Thank you, I have not been told what others are offering, just that mine has to come in unconditional or I will lose it

 

I think it's risky not doing a termite inspection. Unless you are planning to knock down the house anyway.

I would be concerned at the rush. What are they hiding?

Perhaps be prepared to offer more so you can make subject to inspection rather than risk buying serious structural termite damage. Or just organise the inspection for tomorrow, before signing...

On the other hand, if you've been under the house and the stumps are concrete or they have ant caps and you definitely can't see any termite tracks, then I might risk it (as I did with my IP at auction).

 

That's exactly how a typical sale is done. Nothing unusual there.

Building/pest inspection done in cooling off period.

They have to allow it - if not you cool off.

If you are going to cool off, cool off in writing.

 

Awesome!

 

I'm a little confused;

Is it Private or through Agent? perhaps its a buyers agent representing yourself?

Could be many reasons why a vendor would be interested in an "unconditional" quick sale, sure there could be structural issues etc, however it could simply be to reduce disruption to their lives, both vendors may work, agent, interested buyers, valuers & inspectors all coming at different times/days, continually having to make sure the place is tidy, dog/cats secure etc, wondering if any of them are going through their underwear draw etc. Many people hate strangers in their home, especially when their not there to keep an eye on them, the quicker the sale is done = less stress.

Buyers maybe looking for the quickest less stressful route, if there's other offers to consider, which perhaps the agent has also expressed "unconditional" interest to those buyers, yours has subject to "finance" 14 days settlement etc, vs unconditional Cash offer.

I'm thinking why not arrange another inspection before offer, take along a pest inspector with you who can have a quick look while your there. I wouldn't think the agent would have a problem with it, anything to unload the property and get the commission.

 

Its a hot market, don't feel guilty, the seller can easily sell it if you bail out.
Just make sure you have the inspection ready to go so it falls in the 3 day cooling period, you are doing nothing wrong, you have 3 days.

MTR

 

Good point - I don't think you can 'contract out' of the right to cool off.

 

Agent = real estate agent selling it

The whole process was a bit rushed, I already signed and sent the contract as I saw it at a time there was already some interest and I was a later party viewing and didn't want to lose it as its a good one (I think!)

Absolutely agree about vendor wanting to pick the best offer, putting myself in their shoes I would pick the most attractive one too and that's why I have made it unconditional

Unfortunately given the market and having lost 4 properties to unconditional contracts and an auction I really feel like I have no choice but to do this too

 

@Xenia @MTR @Joynz
Thank you! Great to know that! I have signed and sent and feeling much better about it! Fingers crossed I get it and don't ruffle any feathers afterwords!

 

@Xenia @MTR
any tips/advice on how to word it to the REA/vendor so it sounds reasonable that I want to do the B&P afterwords?

 

Just email to say you are wanting to get the building and pest inspection done.

Before that, though, organise an inspector so you are ready to go and can pass the details on immediately

Remember you have very little time for cooling off, so the inspection has to happen very soon.

If you find something you don't like, you can cool off.

 

I have 2 building and pest companies on standby!

 

ditto
its not a crime to get a B@P inspection regardless, just do it

 

GP
Make it known that you will be doing a building and pest inspection during cooling off.
You are doing a favour to the agent/vendor by not putting it as a condition to the contact.
We jump through hoops to ensure purchasers have access and whatever they require for building inspections and due diligence.

Any agent worth their salt will help make it happen.

 

@Xenia thanks, is the cooling off 3 business days or does it start from the exact time on a sat that i and the vendor signs the contract for example?

 

Details here:
Buying property by private sale - Consumer Affairs Victoria