Would you sign unconditional?

I think it's fair to assume that only a small percentage of people interested in a property would be willing to sign an unconditional contract - fair comment?

I know I would, but only being confident with the sale going in my favour and not falling through and me being finanicially disadvantaged.

Has anyone here ever seriously consider it/done it? What gave you the confidence to do it? Did you get a price reflective of the extra risk?
 
I think it's fair to assume that only a small percentage of people interested in a property would be willing to sign an unconditional contract - fair comment?

I know I would, but only being confident with the sale going in my favour and not falling through and me being finanicially disadvantaged.

Has anyone here ever seriously consider it/done it? What gave you the confidence to do it? Did you get a price reflective of the extra risk?

Hiya

Seeing u are in NSW, u must mean signing a purchase contract waiving the cooling off.

From a finance POV, if you can pay with Cash, or have a strong pre approval, have a copy of your CRAA file, and have some spare $ in case the val comes in short then "go for it"

After all, thats what an Auction contract is

ta
rolf
 
Hiya

u must mean signing a purchase contract waiving the cooling off.

After all, thats what an Auction contract is

Apologies - should have been more specific. Yes, no cooling off period. But also no subject to finance clause. No P&B clause.

And I agree with the auction analogy - I thought the same thing.
 
I think it's fair to assume that only a small percentage of people interested in a property would be willing to sign an unconditional contract - fair comment?

I know I would, but only being confident with the sale going in my favour and not falling through and me being finanicially disadvantaged.

Has anyone here ever seriously consider it/done it? What gave you the confidence to do it? Did you get a price reflective of the extra risk?
At the lower end of property the numbers one would think would be high,the same as the mill plus range that pay in their own cash,and a cash contract is in the right market works..
 
I think it's similar to buying at Auctions.

We are currently looking at properties under $450k and our bank manager has approved us up to $400k (90% LMI). We just had to tell her where and what we're buying, and this is the ballpoint figure she put through in email for us to go shopping with. So, if we're happy with the house (looking it through a builder), we may consider waving cooling off period. Houses are hot in the area and we're sick of missing out.
 
I think it's similar to buying at Auctions.

We are currently looking at properties under $450k and our bank manager has approved us up to $400k (90% LMI). We just had to tell her where and what we're buying, and this is the ballpoint figure she put through in email for us to go shopping with. So, if we're happy with the house (looking it through a builder), we may consider waving cooling off period. Houses are hot in the area and we're sick of missing out.

What if you sign unconditional and the valuation is less than you expect?
 
From memory it was 7 days for both and 5 days for cooling off.

Wouldn't you just push for 10 days cooling from day one? My own experience in NSW is that instead of having a separate P&B and finance clause, you just build everything into the cooling off period.
 
What if you sign unconditional and the valuation is less than you expect?

Have equity to cover shortfall.

It is not foolish if you own all or most of your PPOR. Get LOC against it to use to purchase there. No X collateralisation. As value grows, you get main loan revalued and pay back LOC.

Peter 14.7
 
Wouldn't you just push for 10 days cooling from day one? My own experience in NSW is that instead of having a separate P&B and finance clause, you just build everything into the cooling off period.

I agree. The contract I mentioned was my first property and knew no better - the solicitor "did it all".
 
What if you sign unconditional and the valuation is less than you expect?

1. You stump up cash for the difference between the loan and the val. After allm you have signed an uncond contract, and YOU have done your research and the valuer is wrong.

2. Get your broker to use another lender that uses a diff valuer. Preff a lender that allows an upfront val. Now if you still get a val much lower than your uncon contract, then the odds are you may have paid more than market.

The actual chances of a val lower than contract are less than one in 20 unless there is something unusual. We have a very efficient property market IMO

ta
rolf
 
I think it's similar to buying at Auctions.

We are currently looking at properties under $450k and our bank manager has approved us up to $400k (90% LMI). We just had to tell her where and what we're buying, and this is the ballpoint figure she put through in email for us to go shopping with. So, if we're happy with the house (looking it through a builder), we may consider waving cooling off period. Houses are hot in the area and we're sick of missing out.

Nuts : ) , just my view though. A little depends on who the lender is as well.


unless u have enough cash to cover for an x LVR lend

Your last sentence suggests you are letting fear of loss come into the logic side of your decision making process

ta
rolf
 
I think it's fair to assume that only a small percentage of people interested in a property would be willing to sign an unconditional contract - fair comment?

I know I would, but only being confident with the sale going in my favour and not falling through and me being finanicially disadvantaged.

Has anyone here ever seriously consider it/done it? What gave you the confidence to do it? Did you get a price reflective of the extra risk?
It's a fantastic way to secure a property, people will often taken less money for the security of an unconditional contract, you can secure properties going to auction, really a powerful position to be in. Have to make sure you know what you are doing though.
 
It's a fantastic way to secure a property, people will often taken less money for the security of an unconditional contract, you can secure properties going to auction, really a powerful position to be in. Have to make sure you know what you are doing though.

And that's the confidence thing. I think "most" people wouldn't consider it.
 
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