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Before or After ?

Discussion in 'Real Estate' started by Here_To_Learn, 20th Nov, 2007.

  1. Here_To_Learn

    Here_To_Learn Well-Known Member

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    As I prepare myself to make offers on a potential Sydney PPOR ... :eek:

    I am interested in knowing if others ask for a contract of sale, carry out building and pest inspections PRIOR to submitting a written offer on a home ? or AFTER ?
     
  2. crc_error

    crc_error The Rule of 72

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    I would put it into the offer conditions.. "subject to satasfactory building inspectoin"
     
  3. handyandy

    handyandy Well-Known Member

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    I would suggest that you really need to know whether a price you are happy with is going to be accepted.

    In other words you would need to make an offer, get acceptance / negotiate further and then swing in the subject to inspections. Sometimes this is even done after exchange of contract with the contract being a 'subject to'.

    In the end it really depends on where the market is at. Is there plenty of time with few buyers or is it a big rush and a risk of getting gazumped.

    Any way that you do end up proceeding you need to leave yourself an avenue for renegotiations particularly in the case where a building report turns up some curly's.

    Cheers
     
    Last edited by a moderator: 22nd Nov, 2007
  4. Rod_WA

    Rod_WA Well-Known Member

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    About 3 years ago we put in a cash offer at the asking price, with the condition of a building inspection. We were beaten by a cash offer $10k above the asking price, with no strings attached. That's life in the Perth market. What are you willing to offer? Personally, I'd rather offer more but have the inspection clause for peace of mind, than get it cheaper and find out some really bad news.
    But I'd definitely get the offer in, since an offer on the table is live, whilst the suggestion of an offer post inspection could look lower value to a seller.
     
  5. hiflo

    hiflo Well-Known Member

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    I would say it really depends on the market.

    When I used to work in Eastern Suburbs in Sydney for a solicitor whose major work involved conveyancing, the vendor's whose property was located in the heart of Eastern Suburbs had so many interested buyers that did not accept conditional contracts and also vendors required cooling off period to be foregone. And often for well located properties, dutch auction was common.

    However, for properties out in the west like Blacktown, Parramatta, etc I found that Vendor's often gave cooling off periods (this is when the purchaser does building & pest inspetions & finance approval etc), were more considerate. But later I found that this was the case, because there were not that many potential purchasers.

    So if you have a property in mind, make an offer, don't sign the contract, and ask them for couple of days to organise your building & pest inspection and sign the contract once you are satisfied with the reports. Putting an conditional clause saying that "subject to pest and building report" does not guarantee a sale for the Vendor and I am sure he will be more pleased if you told them you will sign unconditionally once you obtain the reports.
     
  6. Jacque

    Jacque Team InvestEd

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    Hi there

    Especially agree with Handy and Hiflo, in that it depends on what part of Sydney you're buying and how hot the market is.

    Don't waste your money on b/p and other inspections unless you feel as though you're in the ballpark. Feel the REA out about price, without revealing exactly how much you're planning to offer. If you're confident that you're close, and wish to offer go in unconditionally (using the 66sW and after conducting your searches) and ask for a response within 24-48 hrs. If, however, you're willing to forfeit your 0.25% to take the property off the market and conduct your searches during this period, then it's up to you. Different areas and different vendors will determine your course of action here. Best of luck with it all :)
     
  7. Here_To_Learn

    Here_To_Learn Well-Known Member

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    Thanks for all your replies and insites ...

    Jacque - what do you mean by "using the 66sW" ????
     
  8. hiflo

    hiflo Well-Known Member

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    Sorry for answering Jacque's question.

    s66w is cooling off certificate that some vendors require the purchaser's solicitor to sign. Some vendor's say that they won't exchange without s66W, meaning that the vendor wants unconditional contract at the time of exchange and will not give the purchaser 5days cooling off period.
     
  9. Here_To_Learn

    Here_To_Learn Well-Known Member

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    Great ! Thanks for the clarification hiflo !

    Next question ... can anyone recommend a solicitor in the Hills area to assist with home purchase transaction ?

    Thanks again to everyone for their input here.
     
  10. Billv

    Billv Getting there

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    I would only use 66sw if the selling price was a real bargain of if there was a lot of competition.

    Otherwise I would sign the contract subject to building and pest inspections including the cooling off period.

    The building inspector will give you an idea of the costs involved to fix any problems he found. You can then use his findings to negotiate the price down.

    Cheers
     
  11. Jacque

    Jacque Team InvestEd

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    Hi HTL

    You don't really need a solicitor as a conveyancer in most cases is perfectly fine. Try Vanessa Tait and Assoc at West Pennant Hills or Conveyancing Avenue at Rouse Hill. Both great ladies and do great business :)
     
  12. Here_To_Learn

    Here_To_Learn Well-Known Member

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    Thanks Jacque.

    So conveyancer can handle questions related to contracts, offers and conditions ?

    Ta.
     
  13. Jacque

    Jacque Team InvestEd

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    Hi HTL

    Sorry it's taken so long to reply- been busy working and moving house :)

    A conveyancer is specifically qualified to handle property transactions and I actually find them more knowledgeable than some solicitors when it comes to property matters :D Best of luck with the offer on the new place.
     
  14. Here_To_Learn

    Here_To_Learn Well-Known Member

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    Thanks Jacque ... still waiting for the right PPOR to appear ! :(