$1 Reserve for Blacktown house!

[Big Will]

why would a low reserve have anything to do with the fiannciability ?

If the vendor cannot repay the mortgage from the sale then the bank will not discharge the mortgage.

 

[Peterw]

If the vendor cannot repay the mortgage from the sale then the bank will not discharge the mortgage.

Unless they enter into an arrangement that the bank is happy with. We have had sales settle, where the mortgage exceeded the sale price. Usually the bank will take steps to satisfy themselves that the sale price is in fact "market" price.

We had a situation, where the property was sold, by us, and while the bank was in the process of "taking over the sale", I think they were vacillating on whether to repossess or not, the ATO filed for Bankruptcy. It was only after another valuation was done, and the valuer commented that he did not believe (due to the on going deterioration of the home) would it sell for close to current contract, all parties decided to allow our contract to settle, and we stood our ground and refused to buckle.

 

[Scott No Mates]

So the fact that it did sell for over $565k while being on the main road means that the strategy paid off wouldnt you agree?

Not necessarily, probably had very little to do with it but more to do with being the marketing strategy to get the maximum exposure possible. Sales of similar properties achieved similar amounts. REFERENCE