Is it possible to purchase a property when the owners are overseas?

[Crystalleez]

Hey guys,

Has anyone come across a property up for sale, listed on Agents website, but hit some difficulty because the vendor is overseas?

I've recently found a prop that so far, without looking inside the prop, meets my criteria. My by research, if the property is in average condition inside (old kitchen, in need of new flooring plus all round tidy up) then the price they are asking in about 10k - 15k under market value. I'm really eager to get a look inside to confirm things.

I called the Agent to enquire about an inspection time and he told me that it's not possible to look through it at the moment because the vendor is overseas. He says they are not sure when he will be back, so they're only taking names and numbers at this stage.

I asked if the Vendor was still "hearing" offers. The agents reply was (in a "are you stupid?" tone, "noo because he's over seas, we don't have the keys to show ppl into the property and he's not in the country to sign any sale documents anyway".

Is it not possible for someone to sell their house whilst being overseas? I would have thought it would be as simple as faxing over the documents to have checked and signing on the dotted line. But then again I've not yet brought any properties, so I'm no expert.

I dont want to just sit on the bottom of a waiting list until the vendor comes back. The market where I'm looking it hot and this may be a bargin. It's in a great position and as I said, around 15k under market value (They're asking 180k, similiar are going for 195k- 200k.

Is there something proactive I can do to get the upper hand? Is it still possible for ppl to sell a property whilst not in the country? I'm thinking that perhaps because the seller is overseas, they're unaware of the recent interest in the area and subsequent jump in prices. If I could swoop in while everyone else is just leaving numbers, and make an offer, this could work?

Thanks in advance for any feedback

Crystal

 

[GoAnna!]

In these circumstances they would normally authorise some-one to act in their behalf. I can only imagine he is coming back soonish?

We have done so for a close relative who sold at auction in Melbourne while he was residing overseas. We signed all the papers as if we were the seller.

Could you offer to subject to inspection being satisfactory?

 

[geoffw]

In these circumstances they would normally authorise some-one to act in their behalf.

aka Power of Attorney.

I did this when selling a property in England some years ago. (I did actually go over, but the exchange and settlement was done in my absence).

In this case, if the vendors have not arranged this, there's not a lot the agent can do.

 

[Xenia]

either power of attorney or a clause in the documents stating that signed faxes are accepted as contracts.

 

[bedelle]

I just bought a block of land in Coolum Beach and the owners are in Texas USA. The agent had documentation for me to sign to authorize contracts to be signed and sent via email or fax, and i guess the solicitors look after the rest.

 

[twobobsworth]

I bought my PPOR and the family had relocated to Indonesia.

We used faxes as authority for exchange and they fedex'd the originals through.

 

[WinstonWolfe]

If I was you:
- Search all the internet property sites and drive past it, to see if another REA has it listed.
- talk to neighbours to see if they know who the owner is.
- see if another REA will get you the owners address via RP Data, then get in touch.

You might find someone at least who can tell you when the owner is coming back from OS, or who might mention your interest and offer next time they talk.

If I get the condescending attitude from REAs, I'll do all I can to cut them out of the deal. Though it would seem the vendor has made it difficult for the REA by not granting his lawyer poa, and giving keys.

 

[lizzie]

the rea must just be telling you the truth - we've travelled overseas extensively and sometimes only stop in one city for 2-3 days before moving on - or even just overnight. it would've made it extremely hard for any documents to catch up with us by any method.

and - unfortunately for our conveyancer and broker - property sales, or purchases, always seem to occur when we are away regardless of when the property went on the market or when documents were signed.

just grin and wait - very hard to do.

 

[want2bewealthy]

I just bought my IP, the owner was living in Switzerland.

 

[WinstonWolfe]

and I bought property 6 weeks ago from a company. 1 director signed. the other was in hospital....so his solicitor signed with power of attorney.

If a vendor is serious about selling, they'll make it easy for a buyer.

 

[Crystalleez]

Brilliant advice everyone. Thankyou I love this place!

Alright so game plan tomorrow is to:
- Drop by the Real estate agency in person, to talk one on one with the REA. He seemed to be in a hurry to get off the phone today :S

- Ask if the Vendor has appointed anyone as a Power of Attorney. I'm guessing this is a no otherwise things would be proceeding.

- Ask if the REA even has contact with the Vendor at the moment. If so, I'll suggest the REA speak to the Vendor about doing business via fax or email. If they don't have a problem, I'll add a clause stating that signed faxes are accepted as contracts. And if I'm not able to get access to the prop before making an offer, I'll add the "subject to inspection being satisfactory" clause to cover myself.

- If none of that goes according to plan, I'll go to the property and knock on the door, leave a letter in the mail box to ensure no body is living there atm that could help me get in contact with the vendor. Also talk to neighbours too see if they know anything.

Hmm one more question... (If the REA is in contact with the Vendor) In my situation, would you go to the REA and first "ask" him to talk to the vendor about doing business via fax? Or would you just go there say "I want to make an offer on this property" and fill out a contract note there and then adding the "signed fax accepted as contract" and "subject to inspection being satisfactory" clauses? I ask because if I receive a straight up "no we don't want to do business that way" answer, where can I go from there? If however I get the offer in first, perhaps they will be persuaded by the dangling carrot so too speak. What do you all think?
Also, what if the REA says I can't make the offer too the vendor in this way, do I just accept that and retreat back into my box? Or do I have a right to make the offer in any way I see fit? Because after all, it is advertised for sale!

Soo many questions sorry I've never done this before so I'm trying to pre-empt as much as I can to be prepared.

Cheers. P.S, I really love this website. It's so comforting to know there are people who have been there and done that before who are willing to talk to newbies like myself and offer priceless advice! You guys rock!

 

[geoffw]

Alright so game plan tomorrow is to:
- Drop by the Real estate agency in person, to talk one on one with the REA. He seemed to be in a hurry to get off the phone today :S

- Ask if the Vendor has appointed anyone as a Power of Attorney. I'm guessing this is a no otherwise things would be proceeding.

- Ask if the REA even has contact with the Vendor at the moment. If so, I'll suggest the REA speak to the Vendor about doing business via fax or email. If they don't have a problem, I'll add a clause stating that signed faxes are accepted as contracts. And if I'm not able to get access to the prop before making an offer, I'll add the "subject to inspection being satisfactory" clause to cover myself.

Probably all overkill.

It sounds as if the vendor has just called the REA to find out if there is an interest. (S)he wants to know if there is interest in the property before letting it onto the market.

If you show that you are extremely keen at this early stage, you're probably losing som advantage.

 

[BV]

If they didn't have a power of attorney they wouldn't have been able to put their house on the market.
I am sure that your solicitor will advice you as to what to do. cheers

 

[Glucose]

If you go to the agency & say "I want to buy this property. Please draw up a contract/offer to buy, today & I'll sign it" you'll at least be first on the list and it should force the agent to make every effort to advise the vendor of the potential sale of their property & get them to sign. I have bought from a vendor who was interstate & getting the paperwork signed took forever because he was "travelling"
One potential problem with this is with the agent holding a firm offer in writing not yet signed by the vendor, he could use it to get other higher offers from other buyers.
If it's not possible for you to buy this property because the agent can't locate the vendor, they shouldn't be advertising it!

 

[Crystalleez]

Quick update.

I met up with the REA today to get some more info. He was much more forthcoming with details. Perhaps he's taking me more seriously as a buyer because we spoke face to face.

The owners apparently put the house up for sale then shortly after skipped off overseas, possibly due to "family issues". The reason they haven't taken the prop of any websites is because the owner would then have to pay again to have them put back on. I more then likely think the just want the free advertising it's giving them. There is no for sale sign out the front of the house.

Members of the owners family are currently living in the prop. I didn't think to ask the agent if he had tried to find out where the owner is from those family members :S Apparently the agency doesn't have contact with the owner "right now" at all. But he seemed very adament that they are doing their best to chase him up asap.

I said "I would be happy to make an offer right now, if you were able to pass it onto the vendor via fax/email". He was fine with that and suggested I send him an offer via email with my clauses included. Doing it this however would be a verbal offer because I can't sign an email!

Condition of the prop is apparently fairly average. But livable. it needs a good clean up he says. I snuck a look through the back fence.. lol I had to see

My thoughts are..
I'll make an offer, but it will be a written contract with all the clauses previously mentioned plus an END DATE. I want to buy a property asap so I won't wait forever for the owner to come back for this one. besides I think once he arrives back it will sell for more. I'll give them until thursday to try everything they can to get in contact with the vendor and have my offer accepted, or atleast viewed for further negotiations..

Thanks everyone!

 

[jingo]

Hi Crystalleez,

Great moves today! Very smart putting an End date in too! As you say, you don't want to be waiting around forever. Especially if something else pops up in the next week or so.

Looking forward to the next update...

Regards Jason.