Hi,
We were recently outbid at an auction for a townhouse. After the auction we were approached by an owner who had another townhouse in a different area of the same suburb. After inspecting the house we agreed with the owner’s comments about it being much nicer, needing no work etc. The floor plan is almost identical to the original townhouse.
After looking at some comparable sales it seems that properties in this new location are worth less than similar properties in the original location. This is likely due to several factors (closer proximity to power lines, slightly further away from public transport etc.). They are not factors that bother us but they may affect the value of the property.
We feel that the owner is after a similar price to the original townhouse as they know the amount that we are willing to spend. We are willing to pay the market price of the property. If we get a pre purchase valuation done we will be up for $400-$500 and the low valuation is likely to discourage the vendor from selling. We really want a valuation before making an offer but don’t want to risk losing $400-$500 for nothing
Is it possible to say that we are willing to split the cost of a professional valuation prior to making a formal offer? Worst case, the valuation is low, the owner decides not to sell and we lose $250. As a vendor would you accept this (they will get a half price valuation on their own house)?
Is this a case for some kind of subject to finance or subject to valuation clause to be included with our offer?
I thought that eliminating agents from a home sale would make the negotiating process easier. Any advice is appreciated and apologies for the long thread.
We were recently outbid at an auction for a townhouse. After the auction we were approached by an owner who had another townhouse in a different area of the same suburb. After inspecting the house we agreed with the owner’s comments about it being much nicer, needing no work etc. The floor plan is almost identical to the original townhouse.
After looking at some comparable sales it seems that properties in this new location are worth less than similar properties in the original location. This is likely due to several factors (closer proximity to power lines, slightly further away from public transport etc.). They are not factors that bother us but they may affect the value of the property.
We feel that the owner is after a similar price to the original townhouse as they know the amount that we are willing to spend. We are willing to pay the market price of the property. If we get a pre purchase valuation done we will be up for $400-$500 and the low valuation is likely to discourage the vendor from selling. We really want a valuation before making an offer but don’t want to risk losing $400-$500 for nothing
Is it possible to say that we are willing to split the cost of a professional valuation prior to making a formal offer? Worst case, the valuation is low, the owner decides not to sell and we lose $250. As a vendor would you accept this (they will get a half price valuation on their own house)?
Is this a case for some kind of subject to finance or subject to valuation clause to be included with our offer?
I thought that eliminating agents from a home sale would make the negotiating process easier. Any advice is appreciated and apologies for the long thread.