Silent auction ( i don't know what else to call it)

[homeless]

What would you do ?

I have found an apartment that I like.
The original asking price seems to be on par with recent sale's for the area.

The agent is claiming there is lots of interest in the property and instead of being a simple sale it will now be signed offers only.
The agent wants a signed (unconditional) contract with my offer by Thursday (in 3 days).
I will only get to make one offer, and they will accept the highest offer.

Whilst looking at the apartment today for the first time…
1) I noticed some water damage in the ceiling from the apartment above
2) The complex's pool is currently drained for repair. (the agent initially claimed she didn’t have access to the pool and as such I couldn’t see it)

I realise both of these problems are supposed to be strata problems. But how much would a repair job in a 5 lane 25m pool cost, I assume a levy of some sort will have to be paid.



I have sent the agent an email asking if I can make my offer subject to a building and strata search, but I suspect she will say no.
I don’t want to pay $500 on checks only to have my offer rejected, I may as well go to an auction and at least get to see the other buyers and their offers.

 

[Fourex]

Hi Homeless,

The risk is you do not know if the agent is telling the truth or not until after the tender process.

There is no way I would submit a signed unconditional contract at or above market value on any property. It does not protect my best interests only the sellers under those circumstances and there is no money saving if it is a market rate for the risk of doing so either.

If the agent is correct and he gets an offer from another party under those conditions good luck to them both.

I would either:

a: Hold out until the set date has passed and touch base to see if is still on the market and go from there.

or

b: Submit my price with my conditions attached.

As much as you may or may not like this property another deal will come along as good or better and one you can proceed with under safer conditions for yourself.

If by after Thursday it is still on the market then you know the other buyers or the strict terms are most likely not going to be still in play.

My 2 cents worth.

Fourex.

 

[Caputo Lawyers]

It is called a tender.

This means that there are probably quite a few interested buyers for this property and it is happening quite a lot lately especially in the inner west so he may not be bluffing.

A strata report costs $265.00 including GST sounds like it is worth it given the issues you are raising to find out about special levies etc and any buidling defects. If they have started the works, the special levies have probably already been struck.

A strata report can be done in 48 hours, so you have time.

You would need to have your finance approved in writing before Thursday though as the contract would be unconditional.



Regards

 

[Dazz]

Homeless,


What you describe is a standard Tender process. Most Buyers avoid this like the plague, cos it actually places the onus on the Buyer to know what the property is worth, and forces them to do some serious homework and commit to Buy.


This is a horrid thought for most Buyers. They'd much prefer to do no homework, be led by the nose by the Seller, simply lop 5% off the asking price, and add a bunch of tricky little 'get out' clauses they learnt off the seminar guru.


Do what most people do chief.....take the easy no work no homework option and get what most people get.

 

[cu@thetop]

Whilst looking at the apartment today for the first time…
1) I noticed some water damage in the ceiling from the apartment above
2) The complex's pool is currently drained for repair. (the agent initially claimed she didn’t have access to the pool and as such I couldn’t see it)

Back away ....not today......

 

[BV]

What would you do ?
I have found an apartment that I like.
The original asking price seems to be on par with recent sale's for the area.

Then offer the original asking price.
Although those who really want to win it will probably offer more

 

[homeless]

Thanks for all the help and tips, greatly appreciated

I think I'll just walk away from this one.

 

[marg4000]

Thanks for all the help and tips, greatly appreciated

I think I'll just walk away from this one.

If you are really interested, then simply offer what you consider would be a good price from your point of view, allowing for the problems you see.
Marg

 

[Jacque]

I don’t want to pay $500 on checks only to have my offer rejected, I may as well go to an auction and at least get to see the other buyers and their offers.

Agree with you here- however as it's now turned out to be a blind auction situation (or tender) you would have spent this money regardless on a strata search and contract review anyway. If you really want the unit, offer your max limit that you would have been prepared to go to at public auction and see what happens. Best of luck.