Buying with no loan - Tips for negotiating?

[albanga]

Hey All,
Just wanted to throw this out there. My mum is retired and looking to downsize, she will shortly sell her house and estimating having about 300k in the bank.

Nearby (keen to stay semi local) is an old retirement village that has shut down and they are now selling the units. There are around 30 on the site with a mixture of 1 and 2 bedders and about 1/3 have sold meaning still 20.

There are 3 identical properties and there price is 279k.

So my question is given mum has (shortly) all the money so no need for a lender and also given there is s number of identical properties and all part of a large dev site what tips do people have for negotiating?

The first that comes to mind is an unconditional offer with very little time to settle.
What other suggestions do people have?

 

[Terry_w]

That is about all there is to negotiate with. It is generally of no importance to he seller where the purchaser gets the money to purchase, as long as they have the money.

But I would still be wary of making unconditional offers - what about building and pest?

 

[albanga]

Hey Terry,
Yeah good point about the building inspection, I have a number of builder mates though which I could leverage during an inspection without the need for "subject to building inspection".

In regards to the no lender I was more thinking from the angle of an agreesive offer which would have little settlement requirements (how long could you potentially settle in with no lender required??). If it was quick and I was able to inspect the property using a builder contact and it got the all clear then I was thinking something like unconditional 250k offer with no settlement period.

 

[Corey Batt]

Unconditional 30 day settlement (ive never really known vendors to actually prefer shorter settlements, can always pose the question to them).

Get a B&P inspector ready prior to exchanging contracts and access during cooling off. If somethings unacceptable, cool off and walk away.

 

[Peter_Tersteeg]

With a cash purchase it would be possible to settle within a day or two of the cooling off period expiring. You can get the building and pest completed in the cooling off period.

Unconditional offer, whatever settlement terms they want. Outside of price, it doesn't get any more attractive than this.

 

[neK]

A briefcase full of cash... i would love to do that one day... just for kicks

 

[albanga]

Unconditional 30 day settlement (ive never really known vendors to actually prefer shorter settlements, can always pose the question to them).

Get a B&P inspector ready prior to exchanging contracts and access during cooling off. If somethings unacceptable, cool off and walk away.

Hey CJAY,
Main reason I am suggesting a quick settlement as an incentive is due to the property being an old nursing home and since it has shut down the units are sitting empty with no tenant. In the scheme of things settling in 3 days or 30 is not going to make a huge difference to the developer (or whoever owns the units) but it would show that we are serious.
Like I mentioned the developer is currently holding 20 properties without tenants so my rationale has more been about a solid unconditional offer right now.

This is why I am asking here though as I could be eat of the mark. Really just trying to learn and see what other tactics are available.

 

[albanga]

With a cash purchase it would be possible to settle within a day or two of the cooling off period expiring. You can get the building and pest completed in the cooling off period.

Unconditional offer, whatever settlement terms they want. Outside of price, it doesn't get any more attractive than this.

Thanks Peter
Just one question, on an unconditional offer is there still a cooling off period?
I thought it meant you make the offer and sign the contract and that's it, no backing out! Or does every contract by law require a 2 day cooling off?
If so are there any repercussions? Since you have not paid a deposit it is not like they could keep that!

 

[Peter_Tersteeg]

On the front page of every Victorian contract you'll find a box describing the cooling off period which is 3 clear business days. It doesn't apply under auction conditions but should apply in the case you've described.

The consequence is that if you opt out under this clause, you forfeit the greater of $100 or 0.2% of the purchase price. This is why agents will often require a holding deposit of at least $1000.

The attachment is taken straight off the front page of a Vic contract.

 

[albanga]

Thanks for clarifying Peter that is really great to know!

 

[cu@thetop]

Hey All,
Just wanted to throw this out there. My mum is retired and looking to downsize, she will shortly sell her house and estimating having about 300k in the bank.


The first that comes to mind is an unconditional offer with very little time to settle.
What other suggestions do people have?

That is one of the most conditional backgrounds I can think of. You want to commit with short settlement date in the above scenario? WTF?

Buy subject to sale and settlement of your mum's current place. Otherwise- you are at risk IMHO.

 

[albanga]

That is one of the most conditional backgrounds I can think of. You want to commit with short settlement date in the above scenario? WTF?

Buy subject to sale and settlement of your mum's current place. Otherwise- you are at risk IMHO.

I was just putting some background behind the question.
No offer would be made until my mums house is sold.