I made an offer on property and to make it attractive-I have offered 30 days settlement (verbal-offer has not been accepted yet). It seemed to have gotten agents attention, however he was like 'so you are offering cash contract'? Could some one please confirm if it simply means that offer is not subject to finance and would be paid in cash regardless of it is mine or some lender? I would want to use borrowed funds to fund the purchase..(pre approval sorted-conditional on property value- and otherwise as well I have fall back position covered as well in worst case scenario-mom-dad bank lol! ). Anyways second question is if it gets accepted, what normally happens from there on? I have made verbal offer- if it gets accepted then should I be asking for contract ? I have been provided sec 32 (basic) and i do believe vendor will also try to use standard contract-so should I be asking for these?once I receive contact- then take it lawyer and proceed from there on and pay deposit? when does conveyancer comes into play? sorry bit new in this game. so looking for some advice thanks
a cash contract is one where you will not be mortgaging the property and using 'cash' to settle. You can tell them whatever you like though - there won't be a condition in the contract relating to this. Once your oral offer is accepted you can then ask for the written contract. then get legal advice on it and then sign if appropriate.
Pre approvals are just that a pre to the actual yes. I would say "no Mr agent Im still financing it".
Which state is the purchase? Is your offer subject to finance approval? Unconditional offer (sometimes referred to as cash offer) still actually could be financed from the bank
In WA if you are saying it's NOT subject to a finance clause then it's considered a cash offer but you don't have to use your own cash. It means you can still use finance for the deal but if you find out that the bank has changed policy etc and you no longer qualify and it doesn't get approved then you are a little bit up poo creek and may lose your deposit if you can't find alternate funding. I would advise that a 30 days is extremely tight to get finance AND be ready to settle. Finance may take 21 days and then you only have 9 days for everyone to be ready for settlement. It's not impossible but if you state is a "don't settle on day = lose the deal and deposit" then I would be very very wary about overpromising and under delivering
Usually means there's no finance clause. Had an agent in QLD mutter the exact same words when placing an offer on a property recently Cheers Jamie
If you are buying in a hot sellers market, it might help to compete. Otherwise, NEVER let the agent know you have cash on hand or do an unconditional. Once they know you are cashed up, they will start playing their games and try their best to push you higher. You will suddenly get informed of other interested parties or other offers higher than yours etc.... Better to find out vendors reasons for selling, if they are in a rush to settle, when they need to settle by, etc. This will allow you to put in a conditional contract with a lower offer/longer settlement and negotiate your way upwards once you get the counter-offer from the vendors. Dont bother with conveyancer, lawyer office will be able to do all that for you. Also you should get prepared with a Building & Pest inspector as well. They will be able to list defects in the building which may be very costly to repair and you can use that report to negotiate the price down further. As it's your first purchase, better not fudge around with being unconditional. Even if you have parents as backup, you dont want to end up with a crappy property with unpaid council rates/water bills which you might have to put in additional thousands to fix.
