Putting the money under their nose.....

B

bradje

Putting the money under their nose.....nicely

Hi,
Has anyone ever placed a cheque for 10% attached to the offer, so that the seller knows you are serious about buying?
What is the best way to go about it so that the vendor wants to take it?
Thx
JB
 
A

Ausprop

well it can't hurt i suppose, other than the REA has an obligation to bank the cheque so you are restricted to how many offers you can throw around.

what is stopping you doing it? just write the cheque and attach it to the contract.
 
B

bespoke

Yep, Ive done it and it worked.

I was interested in a place that had been on the market and had no takers at the initial price, and the owner had temporarily taken it off the market as he was going to do some repair work. It was tenated. Agent wouldnt let me look at it but said I would go on the list of people who wanted to look when it was relisted.

I happened to mention to an agent who I was listing another rental property with (for rent) and he actually knew the agent and got me a viewing. Agent said owner wanted to fix the property up a bit and then was going to relist at a higher price to reflect improvements.

I had a look and saw huge potential (granny flat at rear, on corner block in a urban core zoning). Attached a 10% cheque to the written offer and after 1 day and a couple of back and forth about clauses, offer was accepted.

Conveyancing was interesting as owner owed tens of thousands in land tax and tried to get me to pay it:eek:but that is another story.
 
B

bradje

Thx bespoke. Glad it worked out!
How did u figure out that the attached cheque actually tipped the balance in your favour? Did the agent or vendor mention that to you?
Also, what are the mechanics if the offer is refused? Do you instruct the agent that he cannot bank the cheque until the offer is accepted?
Thx,
JB
 
B

bespoke

The agent actually said to me at the time "smart move, it will certainly get his attention". It also I think gave her the impedus to get him to accept the offer as I think he was a problem client as it had been on the market for 12 months and the price was 80K lower than the original asking price. This info I got from the neighbour after the sale went through. When you attach a cheque (it was a bank cheque) the agent knows you are serious and they can smell the commission.

The agent did actually tell me that the cheque gave her something to show that we were serious, to get him to accept the very good offer.

I did buy litterally days before the first home owners grant boost was announced though, so I'm not sure it would work in a hot market.

The agent told me she would not bank the cheque until the offer was accepted.
 
B

bradje

Very helpful...Thx for the tips mate
Just one other question if I may: Is the cheque made out in the name of the seller or to the REA?
JB
 
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