Urgent Advice Required

[Dave Hooper]

Here's the state of play;

We have inspected a property which we'd like to purchase.

It is on the market for $300 - $350k. i would suggest that $330 would be a fair price if it were in tenantable condition. It would probably cost $10k to get it to that stage.

We offered 280k, knowing that the vendor was VERY motivated (bank moves in on 7th April).

It has been accepted, but our condition that we have 7 days to have building/pest inspection done was not acceptable to the vendor, as this would take the property off the market for 7 days (meaning she'd be out of time and the bank would forclose).

I have (at short notice) managed to get a building and pest inspection arranged for 9am tomorrow.

Should I now insist that a contract be signed (allowing an out for me if the inspections are bad), or should I just wait?

 

[Spectre]

what happens if someone else gets it under contract before you do

stuck with the bill for the B&P?

 

[yo yo ma]

I'd go for a contract now, subject to B&P by COB tomorrow. This way you will lock it up. You won't get an official report for a few days but a provisional discussion with the inspectors will give you a good idea of anything major wrong with it. Tomorrow, being Saturday, will have people out looking and it may attract more interest if your figures are correct.

 

[Dave Hooper]

what happens if someone else gets it under contract before you do

stuck with the bill for the B&P?

Yes. So it's a small risk I suppose.

 

[GoAnna!]

Are you physically going though witht he inspector?

Why not ask for contract with 24 hours to do inspection? If that fails why not arrange to sign papers at 10am post inspection and ask them to call you should any other buyer appear between now and 10am.

They haven't got much time to find another buyer.

Its really down to how much that inspection effects your purchase price (if at all) and how you weigh that up against potentially losing the property to another buyer. What's the worse you could find at an inspection and what woudl it cost to make good?

On the face of it like a good deal and you have done well to find it.

 

[Dave Hooper]

I'd go for a contract now, subject to B&P by COB tomorrow.

Good call. I am thinking this is the right way to go too.

Back on the phone for me.

 

[Dave Hooper]

Are you physically going though witht he inspector?

Why not ask for contract with 24 hours to do inspection? If that fails why not arrange to sign papers at 10am post inspection and ask them to call you should any other buyer appear between now and 10am.

Yep, I'll be there, so that's what i will do.

It makes sense now I see others saying it. It's just hard to keep sane at a moment like this and keep thinking clearly.

 

[Bargain Hunter]

So Dave, how did you go. Have you added an IP to your portfolio?

 

[Dave Hooper]

After the vendor agreeing verbally to our offer, we arranged for the building inspector and the pest inspector to be there at 9AM Saturday morning. As you can imagine, I arranged this at 4PM on Friday, so it was a miracle to get them at such short notice.

At 5.30PM Friday I signed the contract with the agent. He had a few things to do after that, but his intention was to go see the vendor to get her signature.

At 9.30PM Friday he called. The vendor had changed her mind! She was telling the agent that she feels like she'll be able to refinance etc etc (don't know how she'll manage that given she has less than a week before her current financier moves in).

So I was left with a dilemma. I am not one to go back on my word, so I let the inspectors come and do their inspection regardless ($750 total outlay).

The agent feels that the vendor has no choice but to accept our offer (it's either that or the bank moves in), so he intends to speak to her and her solicitors again tomorrow. We'll see what happens I guess.

Needless to say my Friday night went from elation to disappointment pretty quickly.

 

[Property Meister]

hi peter,


good luck with everything, hope you get it,

if you don;t m,ind me asking, what subrbu was it $330k in melboruen sounds pretty cheap atm, unless its a shoebox apartment

 

[skater]

Good luck! Keep us posted.

 

[Dave Hooper]

if you don;t m,ind me asking, what subrbu was it $330k in melboruen sounds pretty cheap atm, unless its a shoebox apartment

I don't mind, but at this stage I might just keep it to myself. Once we get an answer today I'll post up the details.

 

[GordonGekko]

dont you just love the world ... ohh you are in trouble .. let me take advantage of that and score a nice 50k instantly

i guess its one mans bread etc...

ohh well no one lives forever , and 50k is still 50k i guess....

 

[Dave Hooper]

ohh you are in trouble .. let me take advantage of that and score a nice 50k instantly

1. It's not a property I would normally consider. At this price I am.
2. She either sells to me, or the bank takes it off her hands.
3. I did not get her into the position she is in.
4. What would you do?

 

[GordonGekko]

it was a generalization of the world today ... not especially about you , but also you , what i do ? .. thats top secret , but one day i might knock on your door and as you to return the favor i did for you many years ago on my daughters wedding day!

 

[Dave Hooper]

but one day i might knock on your door and as you to return the favor i did for you many years ago on my daughters wedding day!

What are you talking about?

 

[tubs]

I think the vendor was in two minds all along.

Signing a contract subject to pest and building inspection is VERY standard.

I think the vendor didnt want to sign because they were reconsidering the sale, and wanted you to waste your money so they could have time to reconsider.

I'd be pushing to get your costs re-imbursed.

 

[Dave Hooper]

I'd be pushing to get your costs re-imbursed.

I was thinking this too. From whom? The vendor or the agent?

 

[evand]

You're kidding. Theres no contract signed. The vendor didnt ok your decision to get a P & B inspection. Or even ask you to.

You take a risk - you win....Great. Take a risk - you lose....Bad Luck. You can't work both sides of the street. Hedging your bets is not for winners.

 

[tubs]

The vendor. But I guess you're right Evan, nothing is signed.

It just seems that they were stuffing you around. You accepted that they were genuine sellers, and acted accordingly.