Real estate woes (advice) - Page 2

brenx · 07-07-2006, 05:20 PM

Quote:

Originally Posted by Bearman

Clearly they want out and they're trying to get YOU to knock it on the head so they get their deposit back. Ask for PROOF that their finance has not been approved. If they have not stipulated on the contract which finance company will be providing the money all you need to do is prove that a company will take them on and make them aware of it (even if the interest rate is ridiculous). They're playing games.

I wouldn't have ever look at it that way. They may have seen how much the repayments were per month and freaked out.

Racecraft · 07-07-2006, 06:18 PM

afaik it doesn't matter who cans the contract, they will be charged the .25% of their deposit reguardless...

Kryton · 07-07-2006, 06:26 PM

id also be changing real estate agents if they arent willing to help you in anyway. it may cost you more in the long run to do so but the return could be a lot better as well.
give them the 3 days, its only 3 more days. if they havent finalised by then put it back up for sale.

Black XR6 · 07-07-2006, 07:18 PM

need to be very careful changing real estates. Read your contract with them very carefully

TURBOTAXI · 07-07-2006, 07:50 PM

Quote:

Originally Posted by Racecraft

afaik it doesn't matter who cans the contract, they will be charged the .25% of their deposit reguardless...

They had a finance clause. They wont be charged anything. (unfortunately)

Quote:

Originally Posted by XRchic

Yeah, you are right. Its best to sit on it a bit longer if possible. We paid $350K for ours a year ago and it has appreciated significantly since. We happen to be in the biggest growth area in the state at the moment though, and the area is just about out of land

I have had over 100% growth over two years on some property (based on bank valuation), and no less than 80% across my properties (with the exception of Sydney) over the last 2 years - Sydney got 57% over 5 years. I guess I invest better than I modify cars.

What area are you in and what sort of growth have you seen? (I might be missing something!)

Charlie wool - both sides of the equation rely on fear of loss. You are scared of loosing a buyer, they are scared of loosing "their house" I would be requesting a fee per week for you to hold the property for them. ~$250 per week perhaps.
I dont think they are holding out for a gain, that only works in a "bullish" or appreciating sellers market.

Let them know you have other ineterest in the property (I dont care if you do or not)

Let them know you want to see some committment from them, ask for a non refundable deposit, or give them a sunset clause in your agreement to extend - ie must become unconditional by XYZ date)

Put the "fear" into them.

Smoke Pursuit · 07-07-2006, 08:52 PM

Erghhh.

What a load of crap.

Seems to me like they are still running around trying to get an approval.

At this stage I'd be ready to walk away and try selling it again, if they have an approval then they wont need the finance clause and will be ready to go to settlement. Doubt they would have to sign anything to get an approval, therefore the signing bull**** smells bad.. Approvals dont Hold anyone responsible for anything till they get closer to settlement where final docs are signed..

Its a hard one, you could hold in till the 12th and things might be fine, or you could walk away now and have issues selling..

phillyc · 07-07-2006, 10:26 PM

Quote:

Originally Posted by charliewool

Just as a side note... The buyers are from W.A. and are relocating to Melbourne. Could it be that WA does things a little "s l o w e r"?

:

Here tis... Note date of "SALE"!

http://www.realestate.com.au/cgi-bin...=&fmt=&header=

The WA market is very bullish. I read alot about investments and have a friend who is also a mortgage broker over there.

If you are asking me, they are holding out for the gain on their property which could be up to 30% per year. They are holding you in stagnation for their benefit. As their property rises they either have to borrow less or the lending valuation across their property and yours ie the purchase improves.

Check out the finance situation with who they have been refused by, arrange a mortgage for them. It's not your fault.

PS I know how crap some agents are. I am currently trying to negotiate the purchase of an investment property locally. After putting an offer in last week, i got a call that night, raised my offer marginally. Then have heard nothing since....

xbgs351 · 07-07-2006, 10:40 PM

When does the cooling off period start? ie is the deposit placed on your house non refundable?

Yummy Mummy · 07-07-2006, 10:51 PM

WA is the only state where mortgage finance is regulated, but the general lending principals are the same. The only difference between WA and the other states is that you need to be accredited under the regulations to be able to practice.

Real estate agents are 95% of my referral base, hence I deal with them every day, and they will always look to sign an "unconditional contract" first time. Regardless of whether the client can obtain finance, they can use this clause to reneg on a deal even if they simply change their mind. The fact that they are asking for an extension rather than walking away indicates they are probably genuine in having trouble finding finance.

I agree that if more than one valuer has been through the property they have approached more than one institution. If there was an issue with the valuation coming in lower than the purchase price, surely they would let the real estate agent know this, as surely they would be concerned about paying more than what the true value of the property is.

Good luck.

brenx · 07-07-2006, 10:58 PM

you can't rely on a bank eval to indicate a properties true value. My last house was valued @ $95k by a bank. It sold for $155k to an investor and was on the market for 10 minutes. Probably could have sold for 10-20k more? Bank values are always low because they look at quick sale pricing. IE s**t hits the fan and you can't pay the mortgage so they want the sale within 7 days not 3mths to get their $.

Mrs Coyote · 08-07-2006, 07:16 AM

in QLD they have what is called a Sunset Clause where the house stays on the market and if someone meets the price already contracted then the person who has the contract has 7 days to come up with the money or they miss out and it goes to the next buyer. I would be putting the pressure on the agent and asking them to add this clause next time they want an extension.

jimt3te50 · 08-07-2006, 11:10 AM

Quote:

Originally Posted by phillyc

If you are asking me, they are holding out for the gain on their property which could be up to 30% per year. They are holding you in stagnation for their benefit. As their property rises they either have to borrow less or the lending valuation across their property and yours ie the purchase improves.

Check out the finance situation with who they have been refused by, arrange a mortgage for them. It's not your fault.

exactly.

**Charliewool** · 13-07-2006, 08:12 AM

Finally an outcome!... At 4.55pm yesterday (5 mins before deadline) my property became "unconditional" IE: finance was approved! Settlement on 31st
Feels like the weight of the world has been lifted off my shoulders...
Thanks to all for their advice!
regards Charlie

Ringo · 13-07-2006, 08:27 AM

Sheeesh.....I bought a house in 2001. Used Wizard for the finance and had the money ready to go within 30 days.

I have firends who sold their investment property and struck exactly the same situation except their settlement date fell through 3 times - on the 4th it went through. They could have kept the deposit.

If it was me I would have taken a deduction from the deposit to cover my costs (interest, agents fees, admin cost etc) and said tough luck - your not looking to make friends with 'em...its business. I'd also have a talk with your agent - what did he do to earn his fee? Did you give you good advice? Did he work for you or the purchaser's?

I hate real estate agents....

Racecraft · 13-07-2006, 11:50 AM

Quote:

Originally Posted by charliewool

Finally an outcome!... At 4.55pm yesterday (5 mins before deadline) my property became "unconditional" IE: finance was approved! Settlement on 31st
Feels like the weight of the world has been lifted off my shoulders...
Thanks to all for their advice!
regards Charlie

Congrats Charlie

Bearman · 13-07-2006, 11:51 AM

Great news!!! Glad it finally worked out.

BTW, love the way the house was set up with the bar etc!!

Sledgehammer · 13-07-2006, 06:36 PM

Looks like they need a better finance broker......

Their are a few differnces between Vic and Qld but this is a finance problem. Power here is still with you to accept or decline the extension, naturally placing the property back onto the market as has been said above. They can come back with an unconditional offer at a later stage.

(NB in Qld we can take back up contracts which is not done in Vic)

I would discuss with the agent a reduction to your commission as well here or look at another agent.

PM me if you like for my phone number if you need to discuss this. (Im the Head of Lending for a national finance company).

punkin · 13-07-2006, 06:44 PM

Quote:

Originally Posted by Black XR6

I would recommend anybody buying or selling to get hold of a book called "dont sign anything" by neil jenman. It will really open your eyes to the real estate game and the tricks and tactics used. Buy it at most book stores like angus and robertson etc. WELL worth it.

walk into any real estate following the jenman principles and they'll give you the booklets that go along with that book FOR FREE.

I can't understand why you wouldn't go with a jenman registered real estate in the first place ...... no open houses, no auctions, no charges for advertising

XA Coupsta · 13-07-2006, 09:44 PM

Congratulations on the contract going unconditional.

Bet ya glad you gave them those extensions now huh!

Good luck.

Mutley · 13-07-2006, 11:11 PM

Quote:

Originally Posted by charliewool

Just as a side note... The buyers are from W.A. and are relocating to Melbourne. Could it be that WA does things a little "s l o w e r"?

:

Here tis... Note date of "SALE"!

http://www.realestate.com.au/cgi-bin...=&fmt=&header=

Wanting to move from WA to Victoria? Just goes to show they are not all there up top. This is probably the real problem. He He He

AU-MUSTD · 14-07-2006, 05:58 AM

I'm tipping it was all down to them getting there house sold unconditionaly before committng to yours unconditionaly. I was in the same boat when l brought and sold. I couldnt hand over deposit for the new house until l recieved the deposit from the sale of my old house. But this only dragged on for about a month. Glad dit all worked out for you in the end though.