Buying before auction - what is the agents strategy?

Discussion in 'The Buying & Selling Process' started by Gvs, 18th Nov, 2015.

Join Australia's most dynamic and respected property investment community
  1. Gvs

    Gvs Member

    Joined:
    6th Jul, 2015
    Posts:
    17
    Location:
    Adelaide
    Submitted a letter of offer on Monday for a property that goes to auction next Saturday. The offer was 455k unconditional but the agent came back saying the vendor was looking for at least 465k but if we went to 460k we could probably get it.

    We came back with 458k which the agent said he was happy to submit to the vendor but thought it would be best to submit the offer on a contract to show the vendor it was a serious offer.

    The agent organised a time to meet with us to sign the contract the next day but when he arrived he said we can't sign without a solicitor present as we are waiving our cooling off period due to it being a sale before auction and also we should wait for the result of the building inspection which is happening tomorrow.

    Why would he fail to mention the solicitor part before making the effort to come and see us just to put our names on the contract?

    Am I reading too much into it?
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Is this in SA?

    If so then yes, you might be reading too much into it. Some of my purchases have been on contracts - allows vendor to sign their bit and then its aa deal.

    Make sure you specify a sharp expiry time on your offer though. Also ensure you're ok with waving rights - have you done a b & p?
     
  3. Gvs

    Gvs Member

    Joined:
    6th Jul, 2015
    Posts:
    17
    Location:
    Adelaide
    Yes in SA. B&P is happening tomorrow.

    Was just bemused why he would waste our time if we couldn't sign.
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    He probably didn't know until he checked it out later. Industry is of fairly poor standard I'm sorry.
     
  5. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
    No. You only waive cooling off if you buy on the day of auction either as bidder, underbidder or negotiation after hold over on passing in, or you specifically waive cooling off with a conveyancers/solicitors certificate.
     
  6. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    so what was the end result of this, did you end up organising a solicitor?
     
  7. Bargain Hunter

    Bargain Hunter Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    194
    Location:
    Western Sydney
    Given that the auction is Saturday then the vendor may only accept the offer with the cooling off period waived.

    Rearranging another auction if you pull out would be a pain.
     
    Big Will and D.T. like this.
  8. Gvs

    Gvs Member

    Joined:
    6th Jul, 2015
    Posts:
    17
    Location:
    Adelaide
    Solicitor will be organised pending B&P inspection
     
    D.T. likes this.
  9. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    We accepted an offer about 9 days prior to auction with purchaser providing solicitor advice he was waiving cooling off. He then tried to back out. His solicitor advised him he was committed.
     
    D.T. likes this.
  10. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Yup - definitely read what you're signing and be familiar with what you're getting yourselves into.