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Not sure how to handle this situation

Discussion in 'The Buying & Selling Process' started by D&J, 18th May, 2016.

  1. D&J

    D&J Active Member

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    Hey all

    I'd like to get some thoughts on what the best approach would be to try and buy this property.

    History

    I previously had gone under contract for a house and had my B&P completed, finance approval.

    The building inspector had picked up on something which he recommended someone else to take a closer look to determine if there was anything untoward - the vendor declined further access so I had to pull out of the deal (vendor had been very stubborn and unreasonable during the entire process).

    The house has since gone back onto the market with a new agent and whilst open for inspection I had someone go in to take a further look. It has turned out that there is no matters to be concerned about.

    Objective

    I'd like to buy this property - happy to agree on the price previously agreed upon.

    Options

    I was thinking of placing an unconditional offer for the property.. tell the new agent what had happened in the past and that I've since decided to ignore the previous B&P issues and that I'll wear that risk.

    Are there any ways to handle this situation? As I mentioned earlier, the vendor is quite stubborn and was very difficult to work with and during the initial negotiations.
     
  2. Xenia

    Xenia Adelaide Property Manager Business Member

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    B&P?
     
  3. D&J

    D&J Active Member

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    Building and pest report / inspection
     
  4. wylie

    wylie Moderator Staff Member

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    If you are happy without another B&P in the contract, and you know for sure your finance is sorted, could you feel comfortable going in cash and relying on the cooling off to ensure your finance is ok?
     
  5. D&J

    D&J Active Member

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    I'm more than comfortable without another B&P and finance is 100% sorted, in fact the application is still open.

    So yeah, def like to go with an unconditional offer.. I guess my concern is if the vendor still wants to deal with me as there might be commission implications etc

    So not sure if there is a 'smart' way to play this one
     
    Last edited: 18th May, 2016
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Beer & Pretzels - it tends to work where the abbreviation is used.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Don't raise the previous inspection etc with the agent (he might get nervous about missing out on his comms).
     
  8. D&J

    D&J Active Member

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    Thanks Scott.

    That's an interesting approach that I had not considered.

    I wonder if the agent will wonder why I'm happy to go all in unconditionally (without even an inspection).

    I'm sure they will at the very least present the offer that way.. then it would be down to the vendor if they recognise my name etc and whether this is indeed an issue for them.
     
  9. Agent99

    Agent99 Well-Known Member

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    No dont raise old issues just go in all happy and smily. After sweet talking the agent, dump your cash offer on him. Tell him if your successful you want to buy more through him :D He will talk the owner into accepting and you will live happily thereafter :cool:
     
  10. D&J

    D&J Active Member

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    I also wanted to go in with a reduced 14 day settlement (both lawyer and solicitors have confirmed this is fine) so wonder whether the agent will balk it's more common than I think lol
     
  11. D&J

    D&J Active Member

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    or at least an option of a reduced settlement if that worked for the vendor
     
  12. Moych

    Moych Well-Known Member

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    Reduced settlement is good, but check it with your bank first (they are usually the party that takes the longest to confirm everything). I've used it before and the vendor was happy to accept.

    Also submitting an unconditional offer will help the vendor say yes. If there is another offer of the same value but subject to a B&P inspection, the vendor would likely accept yours (as they have already had one offer retracted due to a B&P inspection).

    Your biggest risk is if someone else makes a bigger offer, so the quicker you can exchange contracts the better.
     
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  13. Agent99

    Agent99 Well-Known Member

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    Is the property empty ?
     
  14. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Are they advertising for the same price and how are the buyer numbers? Depending on this, you may even be able to get it at a lower price because you have the advantage of going unconditional.
     
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  15. TMNT

    TMNT Well-Known Member

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    your offer is now far stronger with a no Bp clause,

    so unless you get outbid or the vendor hates you that much, I think your chances are stronger.

    maybe write your offer to the new agent, and dont mention the history,

    mayeb the agent wont know what happened in teh past

    maybe the vendor wont look at the name

    to be honest, when I sold my properties I never looked at the name,

    eg same goes with my tenants, i dont bother looking at the names
     
  16. wylie

    wylie Moderator Staff Member

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    If I was a vendor, had you pull out of the contract on the B&P and then come back with a clean contract, I would be happy to sign. What's not to love?
     
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  17. Big Will

    Big Will Well-Known Member

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    To give your offer the best chance I would try and work in with their settlement goals.

    E.g. If they are still living in the house and haven't found a house or have found a house but haven't put in an offer giving them the flexibility to bring forward settlement would be highly advantageous and a 14 day settlement would be highly unattractive. What if it is a 90yo lady living there 14 days might be rushing her to much, again work with the vendors best interest to give your offer the best chance of success as it isn't always about price or conditions.
     
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  18. Luke T

    Luke T Well-Known Member

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    As will says
    -ask what would be the most preffered way they(seller) would like to do the transaction ,
    i wouldnt mention the past.
    What you are willing to offer on a 14 day with no clauses is 1 in a million for a seller.Its better than winning the lottery -especially seeing as the first contract fell over
     
  19. D&J

    D&J Active Member

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    Makes sense for nay rational person!

    I'll let you all know how it pans out!

    Thanks for some thoughts on how to approach it.
     
  20. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Keep in mind the commission factor. You were introduced by the previous agent so the owner may need to pay a commission to them as well as this one - depending on their contract with the other agent.

    Watch out for clauses in the contract which makes you liable for this second commission.
     
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