Vendor won’t accept pre auction offers

Discussion in 'The Buying & Selling Process' started by jinx77, 16th Oct, 2019.

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  1. momentum26

    momentum26 Well-Known Member

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    Some gold nuggets there, I must say. Thanks For sharing them with us Alan.
     
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  2. Wonderland

    Wonderland Well-Known Member

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    How true is this? I am also tempted to make an offer for a house 2 weeks before the auction. The RA has said that the vendor are preferring to go to auction rather than take an early offer, however it depends on how much the offer is. But I’m worried that it’s a trick to get us to make an offer just so they can reject it and use it as a benchmark to set their reserve
     
  3. Curious2019

    Curious2019 Well-Known Member

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    If you offer what you can afford to pay and they reject it, then you probably can guess that their reserve was or is going to be higher anyways. If you are continuously putting in offers for properties going over your limit, you may need to adjust your location or wait for the market to calm down..
     
  4. Curious2019

    Curious2019 Well-Known Member

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    In your property search how many properties are you finding that you want to bid on/buy?

    If you are looking in a market that you can comfortably afford, I wouldn’t think you’d be serious about more then two or three properties. B&Ps for 3 properties shouldn’t be more than $2k all up. A relatively small % of the overall purchase cost a buying a house that could save you many thousands on invisible repairs or issues.

    There may be people who are not doing their due diligence and bidding without a B&P but they are taking their own risks to do so. If you’re not comfortable taking that risk than the B&P fee buys you peace of mind. I recently bought a house without a B&P but it was only 5 years old and steel construction so it was a risk I was willing and able to take.

    If you are trying to put in offers/bids on tens of properties than I would suggest narrowing down your criteria and spending more time attending auctions of similar properties so you can get a better idea of prices.
     
  5. thunderstrike888

    thunderstrike888 Well-Known Member

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    IMHO as a seller you'd have to be a mug to accept a pre auction offer if your selling in a very hot market. Why would you?

    As a seller you want the absolute maximum you can get. Accepting a pre-auction offer just means your throwing away the opportunity for ppl to battle it out and bid up your price. This is the main aim of an auction.

    Regarding the inspection reports alot of ppl pay each time for one, get one thats already done from the agent or dont do one at all. Thats your 3 options.
     
  6. Kevbo

    Kevbo Well-Known Member

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    If it is private treaty then of course you can commission the building and pest reports during the cooling off period.

    However, if you are heading into an auction with the expectation that you have reasonably strong prospects, then I would suggest thatyou spend some dollars on the reports. I have heard a story recently through friends where the buyer got burnt badly for fairly serious issues (termites, leaking roof, a missing door and piping problems). You will likely be paying a premium at auction for the property you desire - and you don’t want to end up with a lemon.
     
  7. MWI

    MWI Well-Known Member

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    Come on people. use some of your imagination and marketing acumen!
    Why not think outside the box.
    Friends wrote a letter to owners offering various scenarios and guess what the agent is obligated to pass your letter of intent to buy, so become inventive, have you tried other options, give your all, nit just verbal enthusiasm, do your research!
    They sold at auction at record price with extended long settlement and then rebought by writing a letter hence under exchange of contracts but not at auction process at all.
    I am not saying it will work every time but find out the reasons why they are selling if you can and as @kierank suggested, invent various options to meet their needs, sometimes its not all about the highest price, really.
    Best of luck.
     
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  8. fantail

    fantail Well-Known Member

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    An agent we have recently spoken to re a sale in Brisbane suggested we have a B&P inspection done and make it available to interested buyers . Agent says vendors are always advised to do this as part of the pre-lisiting process - firstly it eliminates B&P as a condition on the contract and secondly, no major issues give confidence to buyers - of course, issues shown on report can be negotiated with the buyer (but wise vendors would attend to these before signing takes place, thus eliminating hassle)
     
  9. wylie

    wylie Moderator Staff Member

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    We've done this for the last two sales. I love the idea, but some people still think somehow we can convince the B&P inspector to do a dodgy report and risk their business and livelihood. Crazy.
     
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  10. kierank

    kierank Well-Known Member

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    All B&P Inspection Reports I have commissioned have something like the following as a disclaimer:

    “This report is the exclusive property of the inspection company and the client whose name appears herewith and its use by any unauthorized persons is prohibited.”​

    I read this as:- if you didn’t pay for it, you have no comeback if the Inspector missed something.