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Property sold... What happens now?

Discussion in 'The Buying & Selling Process' started by vtt, 22nd Jul, 2015.

  1. vtt

    vtt Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    254
    Location:
    Inner West, Sydney
    Hi all

    We recently sold our PPOR in Sydney at auction for a record price in the suburb. On auction day the buyer put down the 10% deposit (more than enough to cover agent commission, marketing etc.) and the property exchanged.

    So fast forward 5 weeks to where we are now. The buyer had a valuer come through last week which was all fine but is now having a second valuer come through.

    The real estate agent told us this is normal with the market as crazy as it is now. We are wondering though if we should be concerned? Settlement is just over a week away, isn't it a bit late to be getting valuations?

    If the buyer can't come up with the $$ then do we keep the deposit? I assume then that we would put the property back on the market, is that right?

    Any advice much appreciated.
    Thank you
    vtt
     
  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Sydney & Adelaide
    Second valuer is prob from a second lender, 5 weeks is a long time from auction till val, they may have finance issues from the first val due to the record price achieved

    And yes you can keep deposit if they fail to complete. Whether you do is up to you.
     
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
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    1,225
    Location:
    NSW
    Yep, agree with Dave. The purchaser's can't get finance due to a low valuation coming in. They have 3 options:
    1. Get another lender/valuer combination, which hopefully agrees with the price paid.
    2. Tip in more cash of their own into the deal, which they may or may not have.
    3. Fail to settle - where you get to keep their 10% deposit and resell to someone else. You can also sue them for any shortfall in purchase price achieved the 2nd time around.
    Given that it is only 1 week to settlement, be prepared to not settle on time and your soli may have to issue a 14 day notice to complete. :eek:
     
  4. chylld

    chylld Well-Known Member

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    Location:
    Sydney
    I recently purchased for a record suburb price and got a low val, broker was considering 2 options:
    1) find a second lender who will hopefully val at purchase price
    2) get another val done by first lender

    In the end we decided not to do either as I had enough cash to complete anyway and time was running out. Just giving one buyer's perspective, hopefully it works out smoothly for you :)
     
  5. littletee

    littletee Active Member

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    18th Jun, 2015
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    Location:
    Melbourne
    Let us know how it goes VTT.
     
  6. vtt

    vtt Well-Known Member

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    18th Jun, 2015
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    Location:
    Inner West, Sydney
    As an update settlement occurred without issue - turns out the buyer couldn't get finance organised in time for settlement so paid cash and will organise finance later. I'm not sure exactly how that works - perhaps a temporary loan from the BOMAD? (Bank of Mum and Dad)

    Anyone ever heard of this happening?

    Either way.. it's done :)
    vtt
     
    Esh likes this.
  7. Esh

    Esh Well-Known Member

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    Location:
    Sydney NSW
    Awesome, congrats!