Browse Forums Real Estate 1 Jun 08, 2010 1:14 pm hi, me and my hubby have found a house we love its only come on the market 1 week ago and the first open was sat just gone they are advetising 380-410K, auctino is in a month houses in the area are going for about 450K, so we want to make an offer we dont want to wait for auction and prefer NOT to go to auction, so we are thinking of making a serious offer of 425K this thurs after we view it tomorrow for the 2nd time theres no point making a low offer as they will never accept , our price is max 450K, obviously we wont tell the agent that but hope they are open to our offer and that we can negotiaite up any advice? i really realyl want this house!! Re: Making an offer before auction advice 2Jun 08, 2010 1:18 pm firstly. Dont sound so keen. Secondly find another house that you like that is for private sale. make sure you tell the first agent about htis house. tell him that you want to make an offer behind auction just in case they accept otherwise you will look at buying this other house. Re: Making an offer before auction advice 4Jun 08, 2010 3:42 pm of cource they underquote every auction ive been to, the reserve is 40K + over the amount quoted Re: Making an offer before auction advice 5Jun 08, 2010 4:02 pm as for most sales instead of auction, you generally offer less say 413, they reject and then you go 417 and say you cant go any higher. with auctions, and offers before; unfortunately you pretty much have to put in your best offer and hope the owners want to save themselves money by not going to auction. i would in your case put an offer in for 414-9k (random numbers spook people try your luck and see what the agent says, dont act keen.. dont ring them back.. its a tactic they use to find out whom will pay more, without knowing the area nor the house its hard to value it, it may even be worth less than 400. we found one house and offered 603, they wanted 620+ and it was due to goto auction in 5 weeks time (obviously to get offers in to see what it would go for) they rejected and we played the 'yeah thats fine we dont need it' card; went to the auction and the bidding didn't get over 500! we tried to bid for 520 and the auctioneer wouldn't take it! so we just walked away. the house has been on the market for 4 months now and has not since sold! wish you the best of luck! edit - vikkie very true!, ive been to 9 auctions this year and everyone of them went over! some ranging from 330 to 390, and 290- 380! just baiting from the agents to get more people to attend -FF 2nd-Fix | Blog Building with Desyn Homes previously with the insolvent [url=https://www.facebook.com/7NewsAdelaide/videos/1162546323776021/]Endeavour Homes[/url] Re: Making an offer before auction advice 6Jun 08, 2010 9:37 pm You really can't always assume that a house selling for more than the quote price at auction is the agent deliberately underquoting. A lot can happen between the initial advertising (and the quote price being set) and the time of the auction. Agents aren't psychic, they can estimate a fair value for a particular property but they can't predict what multiple parties all wanting the same property might be prepared to pay. Re: Making an offer before auction advice 7Jun 08, 2010 9:47 pm You will need to make sure your offer is unconditional. There's no legal reason for this, but what owner in their right mind would accept an offer subject to finance prior to auction when they could wait for the auction and possibly get an unconditional sale. When you make your offer, don't be surprised if they still hold the open inspection that is probably planned for Saturday. Remember it is the agent's job to get the highest price for their vendor and when armed with your offer they might be able to elicit offers from others. Just let the agent know that you would like an answer prior to the open inspection, they should have the courtesy to get back to you by the next day. Re: Making an offer before auction advice 8Jun 09, 2010 12:06 pm thanks for the replies something i am very confused about is, i am a first home buyer so obviously i am getting a bank loan to fund this purchase we have a 20% deposit ready to go avail immediately, we also have a pre apprioval from the bank for the rest, so when u say subject to finance, does that include my case where i have it ready to go ie pre approved? if not how can u buy, unless you are a lucky one who doesnt need a mortgage! Re: Making an offer before auction advice 9Jun 09, 2010 12:47 pm Your offer will be 'subject to finance' as you still only have conditional approval. It won't become unconditional until you have formal approval from the bank... and at the end of the day, preapproval doesn't count for much in the world of real estate and the way banks are in this sort of economic climate. To buy at auction, your offer has to be unconditional. No subject sales, no finance clause (cash offer) and you'll usually need to pay the deposit on the day (ie when you sign the contract). If someone is selling at auction, they are less likely to accept any pre auction conditional offers because they would be hoping to have a few cashed up buyers bidding on the day. On the other hand, they could end up with 50 people and no bids. As always, a house will only sell if there is someone who wants to buy it, and the vendor has the advantage of accepting or declining any conditions offered by the buyer. I guess it all depends on how motivated they are to sell their property. Oceanic with Nautilus upgrades. Handover 8 September 2010 Re: Making an offer before auction advice 10Jun 09, 2010 1:48 pm thanks so are u saying you have to have ALL the funds in the bank , no finance , to buy at auction? thats crazy!! if we buy at auction we would pay the 10% on the day (cheque) and arrange the finance before settlement. Re: Making an offer before auction advice 13Jun 09, 2010 2:56 pm Do your own research, and work out what you think the property is worth. If in doubt get some advice off someone who would know. Put your best offer to the agent before auction. Then walk away. Do not listen to what they have to say. Good luck, and dont get feelings involved. Re: Making an offer before auction advice 14Jun 09, 2010 3:36 pm thanks guys,. well we were going to offer 425K first offer the house based on others in the area would got for approx 450k our max price would prob be 455K, but obviously we wouldnt offer that now they are advertising it as 380-410K Re: Making an offer before auction advice 15Jun 09, 2010 3:54 pm That sounds reasonable to me Vikki. And as for the 'unconditional' finance, if the bank has 'pre approved' the loan, to my understanding, all that hinges on it becoming unconditional is that they just have to value the property that you purchase to make sure that you haven't paid $450k for a house that they value at $350k (for eg). They need to know that they will get their $$ back if anything goes wrong and the property needs to be sold again. So it is impossible to have all the $$ in the bank ready to go before purchasing, they only release it upon final valuation after purchase (again, this is just to my knowledge - in the state of Vic). I have never quite understood 'subject to finance' clauses to be honest - you either have pre-approval or you don't. Maybe more people than I would ever imagine actually go buying houses when they don't even know if they can get the $$?? Or maybe it does just mean the bank has to give the final nod but rarely do they decline unless you way overpaid for the house in the first place. Ceebs Re: Making an offer before auction advice 16Jun 09, 2010 6:45 pm Pre-approval means nothing. Anyone can ring a bank and get pre-approval over the phone (unless their finances happen to be in terrible shape). Banks are lending to fewer and fewer people at the moment too, which makes it harder. Vikkie - When you make an unconditional offer you can still finance through a bank but you need to understand that if you sign an unconditional contract and your finance doesn't get approved you are still legally obligated to continue with the purchase. Re: Making an offer before auction advice 17Jun 09, 2010 9:27 pm Pre approval 'could' mean nothing, but if you have gone through all the right channels and have an official pre-approval from your bank or mortgage lender (not one of these "get approval in 60 seconds" approvals) and you have word from your bank that the loan is ready to go subject to valuation of the property, then that is a fairly certain approval in my book. Otherwise, nobody could go to auction as you cannot buy at auction with any conditions. Re: Making an offer before auction advice 19Jun 10, 2010 10:39 am thanks guys we went and saw the place again last night, there is def alot of interest another person there last night was talking to agent about making an offer and someone else he said asked the same thing, the vendor sounds keen from what the agent made out to poss accept an offer before the auction, we are making an offer today of 430K fingers crossed we can negotiate and get it , if it goes over 460K we are out Was the offer also on their website? If so, you could check the Wayback Machine. 1 543 Versaloc is a mortarless besser block system that still needs a properly engineered footing. If you just do a 400x200 footing it will fail in time. At 17m long you need it… 1 17738 I am in the same situation, would you be able to give some insights in to this? I am in SA 8 17047 |