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Making an offer before auction with subject clause?

Discussion in 'The Buying & Selling Process' started by psylence, 16th Jul, 2015.

  1. psylence

    psylence Member

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    Hi noob here looking for first investment townhouse. I need a subject to finance clause which rules me out of auctions, is there much chance of me placing an offer on a property that is up for auction and asking for a subject to finance clause?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    No chance buddy.
     
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  3. Pistonbroke

    Pistonbroke Well-Known Member

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    Eve preauction property is sold unconditionally.
     
  4. Big Will

    Big Will Well-Known Member

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    You might be able to get away with it on day 1 of the auction campaign but you would also need to pay a premium price.

    You will not get STF to fly after week 2 IMHO.

    I guess who it gets passed in and then you can work your magic.
     
  5. psylence

    psylence Member

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    Thanks for the help will just focus on non auction properties
     
  6. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    If you're really keen to secure prior to auction and can get an offer agreed in principle as well as 48-72 hrs to exchange unconditionally (we've done this a no. of times for clients) this can be acceptable to some vendors. Risky, as it provides time for the agent to round up all other interested parties in a race to exchange, but if well-planned and executed it can work. Your lender needs to be on side and ready to roll but a lot will depend on your current financial position, LVR and amount of deposit etc. If your lender can't effect a val and finance approval within 3 days then you're better off proceeding to auction. Best of luck.
     
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  7. wylie

    wylie Moderator Staff Member

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    We did accept a good offer two weeks out from auction with a three day finance clause. No mention to anyone, open houses not cancelled until that time was up and it went unconditional.

    Other potential bidders were contacted to see if they wanted to make an offer. Nobody else did, but we had had two lower offers already. We were hoping for an offer before auction.

    Finance was pre-approved but the clause was there to ensure there was no late hiccup with it. Any closer to auction would have been less doable but it seemed a safe bet.
     
  8. Tekoz

    Tekoz Well-Known Member

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    @Big Will : pardon me, but what is STF ? is that a typo from STFU which... is not supposed to be typed in this forum :eek: ?
     
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  9. Big Will

    Big Will Well-Known Member

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    Subject to finance :)

    Also if you see STB&P is subject to building and pest
     
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  10. Tekoz

    Tekoz Well-Known Member

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    @Big Will LOL, ok thanks mate for the clarification.
    Curiosity kills me for a moment.