Hi,
I'm hoping someone can help me out in what to do as I'm a bit confused! I'm reading other threads but thought I'd post and see if I can get some answers for exactly what I need to do.
Basically my husband and I are wanting to buy a house in Melbourne. We currently live with my parents. It's our first home so FHOG applies and we have a 10% deposit as well - our budget is about 300k for a house and we have preapproval for 270k (so with our deposit that makes 300k). We'd like to move out asap as I'm due to give birth in 2 months to our DD#2.
Anyways we found a house around that mark that is due to go for auction in 2 weeks. We spoke to the REA about making an offer before as we would like to buy asap. He said because it was going to auction we can't make an offer subject to finance. As it's our first house and even though the person who deals with us for our finance has said it shouldn't be a problem and it takes 3 weeks for full approval we're obviously wary of making any kind of unconditional contract.
Our bank guy said after we spoke to him that to get an evaluation done.
So my q's are
- is it true you can't do subject to finance contracts before an auction?
- what are the risks in unconditional contracts? woudl we lose our deposit if we couldn't get our finance approved in time?
- are auctions unconditional as well? if we bid at auction would we be in the same position as making the offer beforehand?
- if they wont take our offer now and the auction doesnt bring the price they want can we make an offer subject to finance after the auction?
- if we can make subject to finance clause offers is the REA obliged to pass it onto the vendor?
The agent has indicated to us that the vendors are in a real hurry to sell for whatever reason (i think they need it for a house they have bought).
Thankyou in advance!
I'm hoping someone can help me out in what to do as I'm a bit confused! I'm reading other threads but thought I'd post and see if I can get some answers for exactly what I need to do.
Basically my husband and I are wanting to buy a house in Melbourne. We currently live with my parents. It's our first home so FHOG applies and we have a 10% deposit as well - our budget is about 300k for a house and we have preapproval for 270k (so with our deposit that makes 300k). We'd like to move out asap as I'm due to give birth in 2 months to our DD#2.
Anyways we found a house around that mark that is due to go for auction in 2 weeks. We spoke to the REA about making an offer before as we would like to buy asap. He said because it was going to auction we can't make an offer subject to finance. As it's our first house and even though the person who deals with us for our finance has said it shouldn't be a problem and it takes 3 weeks for full approval we're obviously wary of making any kind of unconditional contract.
Our bank guy said after we spoke to him that to get an evaluation done.
So my q's are
- is it true you can't do subject to finance contracts before an auction?
- what are the risks in unconditional contracts? woudl we lose our deposit if we couldn't get our finance approved in time?
- are auctions unconditional as well? if we bid at auction would we be in the same position as making the offer beforehand?
- if they wont take our offer now and the auction doesnt bring the price they want can we make an offer subject to finance after the auction?
- if we can make subject to finance clause offers is the REA obliged to pass it onto the vendor?
The agent has indicated to us that the vendors are in a real hurry to sell for whatever reason (i think they need it for a house they have bought).
Thankyou in advance!