Unconditional Offer - Pros & Cons

[The Y-man]

4. Y Man and OzPerp How about if I offer $5 K deposit when putting in my offer Would that be enough?

It's probably ok - what the vendor looks for is the magic "unconditional" word.

Cheers,

The Y-man

 

[Alex P Keaton]

1 and 3 are for the same reason. There is a much higher possiblity of a 95% lend getting rejected compared to an 80% or 60%

Your mortgage broker should be able to advise on your probability of getting the loan.

Ask him/her - what are the chances of getting 95%, 80%, 70% etc

Cheers,

The Y-man

Just left a message with my mb. Yeah I'll talk to him about the possibility of getting the 95% loan and also get his opinion on offering "unconditionally".

Do you think that because its x-col with my ppor I have a better chance of getting the finance??

 

[Alex P Keaton]

It's probably ok - what the vendor looks for is the magic "unconditional" word.

Cheers,

The Y-man

Cool ok

..........

 

[Alex P Keaton]

Another factor is your monthly saving capability.

It's another reason for long settlements - because if you can save 5% of the deposit per month, a three month settlement can make all the difference if you fail to get a 95% lend but securing a 80%.

Cheers,

The Y-man

I am able to save on average - $900 per month.

So do you think vendors are still keen to accept unconditional offers even with a long 3 month settlement?

 

[The Y-man]

I am able to save on average - $900 per month.

So do you think vendors are still keen to accept unconditional offers even with a long 3 month settlement?

Kim,

When thinking about buying, put yourself in the seller's shoes.

Suppose you are selling a property for $350k.

You have been running some open for inspections.

Remember, you have no tenants, you are paying the mortgage every month

Every now and again, you need to go in and clean the place, check no one has broken in, etc.

Then your agent calls you. They have 2 offers on the table.

One says they will pay the full asking price of $350k, but they are subject to getting finance, building and pest inspection etc, 30 day settlement.

Second offers $300k (a full $50k less!!!) unconditional, 90 day settlement.

Which one to take?

In either case you must withdraw advertising, and can not show any more people through or take any other offers.


Cheers,

The Y-man

 

[Dazz]

Which one to take?

Neither, let the Seller's REA do what they do best, lying their sox off and play the two parties against one another, with the goal of bring the unconditional offer up and/or getting rid of the escape chutes on the higher offer.

 

[Alex P Keaton]

hmmm interesting. Some things to think about