What is your strategy for securing a property

With the housing market so competitive, I hear a lot of people are signing the contract of sale to secure the property first, then conducting building/pest/strata checks afterwards.

I understand people don't want to get gazumped, but a 0.25% deposit can be a lot of money and also risky in my opinion.

Is it possible to add clauses to the contract before signing, such as subject to ;
- bank valuation/ finance
- building/pest/strata checks

will the vendor agree to such requests or likely accept another offer from someone else willing to sign the contract as-is

What are your thoughts on this and what is your strategy for securing property?
 
All depends on the property and the market it's in...

Last property I puchased was unconditional, no clauses.

There was multiple other offer on the property, some higher some lower. In the end my won becasue it was the most attractive to the buyers.

So I would suggest you do your DD on the market, the value of the property and find out what the sellers want because end of the day they are the ones selling you the property.
 
What are your thoughts on this and what is your strategy for securing property?

Trying to sign a contract of sale with "subject to" clauses in Sydney, as a hot makert, with multiple offers on a property, just won't work. No REA would advise a vendor to accept such a contract.

You sign up, pay up and then get 5 days of total control. If you don't like the reports - go back and renegotiate the price with the threat of pulling out of they don't agree.
 
Trying to sign a contract of sale with "subject to" clauses in Sydney, as a hot makert, with multiple offers on a property, just won't work. No REA would advise a vendor to accept such a contract.

You sign up, pay up and then get 5 days of total control. If you don't like the reports - go back and renegotiate the price with the threat of pulling out of they don't agree.

Thanks for the advice. I guess that is just how it is in Sydney these days...

With the way Sydney is at the moment, even threatening to pull out of the deal if we found issues with the property won't make a difference. Vendor will probably let the buyer walk, keep the deposit and get another offer almost straight away.
 
With the way Sydney is at the moment, even threatening to pull out of the deal if we found issues with the property won't make a difference. Vendor will probably let the buyer walk, keep the deposit and get another offer almost straight away.

Correct - you snooze, you lose! :eek:

Although, to be fair, many vendors after 5 days of fingers crossed, would want a sale to stand up - especially if they have found anther property they want to purchase. For example, if it is a building issue, the REA's advice to the vendor would be that "this issue will keep raising its ugly head, so fix it or renegotiate the price now". :)
 
Correct - you snooze, you lose! :eek:

Although, to be fair, many vendors after 5 days of fingers crossed, would want a sale to stand up - especially if they have found anther property they want to purchase. For example, if it is a building issue, the REA's advice to the vendor would be that "this issue will keep raising its ugly head, so fix it or renegotiate the price now". :)



Good point. I think we are just going to have to bite the bullet and sign up, pay up and hope the reports come back OK.

Costly exercise if it doesn't work out but at least we have a shot at securing the property....

happy days if you own property that's all I can say!
 
hi PNooby in this market it is true (in Sydney anyway) that conditions attached to the offer/sale will probably be deemed either frivolous or too hard by the vendor/vendors agent. But you must not panic as there are plenty more fish in the sea as far as properties go so I would put minimal conditions e.g.. subject to pest/building report only & go from there & (financed approved) or are you a cash buyer?
 
hi PNooby in this market it is true (in Sydney anyway) that conditions attached to the offer/sale will probably be deemed either frivolous or too hard by the vendor/vendors agent. But you must not panic as there are plenty more fish in the sea as far as properties go so I would put minimal conditions e.g.. subject to pest/building report only & go from there & (financed approved) or are you a cash buyer?


Thanks Puntercollect, much appreciated.

My main interest was to understand what other buyers were doing to secure property so quickly.

I wish I was a cash buyer! its finance for me
 
When you say no conditions, do you mean you'd still have the "standard" conditions like subject to finance? Or do you mean all your offers are literally unconditional?

Always unconditional. I don't have time to waste with finance clauses - maybe it's because in Victoria we're used to auctions.
 
I'm with Aaron every purchase I've made has been unconditional...

Only two of them were subject to B & P but no finance clause.
 
I went unconditional for the past 2 properties. I don't see it being a big issue if you have a buffer behind you. DO NOT go unconditional if you're borrowing 95% and don't have any spare cash because valuations can always come under. If you can go 80%, even if valuation come under, you can always just go higher lvr and cop the LMI (capitalized).
 
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