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Checklist before buying a townhouse at auction

Discussion in 'The Buying & Selling Process' started by ej89, 18th Aug, 2015.

  1. ej89

    ej89 Well-Known Member

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    Hey,
    Done my due dilligence on a townhouse regarding pricing and location (including flooding,noise,transport,bushfires), now I need some more info before I put an offer in unconditional. What are some of the things I should get before putting my offer in?

    Pest & building (obvious one).
    Strata/body corp report? (How do I get this?)
    Rates?
    Payment of rates to council? (If they're going broke?)

    What reports/info should I be getting?
     
  2. Esh

    Esh Well-Known Member

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    Strata report: you can get your conveyancer to do it for you or can contact strat yourself and go through it.

    I think that with building and pest is sufficient enough.
     
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  3. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Perhaps if its appropriate try to get a tradeoff from them for going unconditional eg u might want longer settlement or reduced price or some other concession. If you think it's viable maybe try for it?

    Good luck mate!
     
  4. ej89

    ej89 Well-Known Member

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    Owner's selling at auction to get unconditional and has 30 days settlement. Has debts to pay the bank so I wanna get it before auction day on his terms. Lowball offer here we come :)
     
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  5. Leo2413

    Leo2413 Well-Known Member Premium Member

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    NIce one. Good luck buddy! Let us know how it goes. I'm already excited! :D
     
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  6. Chilliblue

    Chilliblue Well-Known Member

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    Pest and Building and strata would be on my radar.

    Also, have a talk to the other occupants as they can often bring up an issue or two not always documented.
     
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  7. Azazel

    Azazel Well-Known Member

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    That is interesting, good you know some background on it.
    Which area did you end up going for?
     
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  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I'm actually interested to know who let the cat out of the bag on that one. :eek:
     
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  9. ej89

    ej89 Well-Known Member

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    Moreton Bay area. A bit North of where everyone else is buying :)

    It's a secret :)
     
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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    awww no fun you! hmm I bet I can take a guess who the culprit it...;)
     
  11. ej89

    ej89 Well-Known Member

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    Can't be me. I just ask innocent questions :rolleyes::)
     
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Yes, I'm sure you ask 'INNOCENT' questions :p

    Intrusive
    Naughty
    Nail-biting
    Obscurant
    Cunning
    Explorative
    Nasty
    Telling
     
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  13. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    1. Contract review by a conveyancer/solicitor. If in QLD try @RPI Certus Legal as recommended by many on this very forum. They will also be able to order your strata report (absolute essential) b/p report, investigate/adjust rates for sale as well as review contract and amend any sale terms/conditions accordingly.

    2. Background/radius check on property surrounds. Use RPData, APM or a REA contact to find out ownership of nearby property, if Dept of Housing/industrial/commercial ownership is a concern to you or would be detrimental to the subject property.

    3. Obtain a rental appraisal for your lender and ensure it's accurate.

    4. Prepare a written price/offer justification backed up by recent comparables, state of the market, condition/location of property to provide to the agent. Using information gleaned from the selling agent regarding vendor motivation and situation use this to your advantage as it's not always exclusively price point that may be attractive to a seller (though it seems you've done some of this already!)

    5. Prepare your negotiation strategy with the agent and be ready for the objections conversation. Put a time limit on your offer if necessary and good luck!
     
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  14. ej89

    ej89 Well-Known Member

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    Thanks heaps Jacque :)
     
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  15. Bayview

    Bayview Well-Known Member

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    Hey; but aren't you a greedy evil investor; out there pushing up the prices so the FHB's can't buy? o_O:p
     
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  16. Azazel

    Azazel Well-Known Member

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    Good stuff, that's the way to do it.
    Hope it works out.
     
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  17. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @Bayview ....greedy, evil investors pushing up prices...how dare they!!
     
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  18. ej89

    ej89 Well-Known Member

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    FHB's should be buying what I'm hoping to buy... If all my calcs are right and I get the price I want, 1.5 years of positive cashflow will cover the money I put into the property to buy it haha
     
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  19. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Awesome mate! I really hope it goes your way - fingers crossed.

    The reason why I know with certainty the whole FHB cant get into the market is nonsense is because I have personally showed quite a few people who had the whiney attitude of poor me cant get in the market, blamed investors, blamed house prices, blamed government blamed the whole world... When I showed them how to change a few things here and there and they seriously did it, the results in all of them was amazing. Absolutely amazing.
     
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  20. Fargo

    Fargo Well-Known Member

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    See how soon your conveyancer can settle, rather than offering a long settlement offering a 21 day settlement may give you an advantage
     
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