| 1 | Hi, I'm wanting to buy a house at Auction (I've never done this before). The Agent says I need to be an unconditional buyer in order to bid at Auction (finance approved, builders report done etc).
We were going to renovate our existing house so we haven't had ours on the market, the Auction is in 3 weeks with a settlement 6 weeks later.
We're now desperately trying to get this house on the market to try get some offers in before Auction.
Has anyone done this, can we have a clause in our agreement to sell existing house that we will only sell if we win the Auction on the new house. We don't want to end up homeless.
Bridging finance seems the only option to sort the finances out, and we might come unstuck as I don't think we have 80% equity across both properties if they settle on different dates which we would try to avoid. I know we can afford the end result its just how do we get from A to B Any info would be much appreciated :-) mbi15 - 2021-10-14 19:35:00 |
| 2 | mbi15 wrote:
Hi, I'm wanting to buy a house at Auction (I've never done this before). The Agent says I need to be an unconditional buyer in order to bid at Auction (finance approved, builders report done etc).
We were going to renovate our existing house so we haven't had ours on the market, the Auction is in 3 weeks with a settlement 6 weeks later.
We're now desperately trying to get this house on the market to try get some offers in before Auction.
Has anyone done this, can we have a clause in our agreement to sell existing house that we will only sell if we win the Auction on the new house. We don't want to end up homeless.
Bridging finance seems the only option to sort the finances out, and we might come unstuck as I don't think we have 80% equity across both properties if they settle on different dates which we would try to avoid. I know we can afford the end result its just how do we get from A to B Any info would be much appreciated :-) You can include any lawful clause you like. Getting the other party to agree is entirely different. johnston - 2021-10-14 20:08:00 |
| 3 | Talk to a broker, see what they say. It's their day job.Try jeffqv who posts helpfully here. artemis - 2021-10-14 20:08:00 |
| 4 | mbi15 wrote:
Hi, I'm wanting to buy a house at Auction (I've never done this before). The Agent says I need to be an unconditional buyer in order to bid at Auction (finance approved, builders report done etc).
We were going to renovate our existing house so we haven't had ours on the market, the Auction is in 3 weeks with a settlement 6 weeks later.
We're now desperately trying to get this house on the market to try get some offers in before Auction.
Has anyone done this, can we have a clause in our agreement to sell existing house that we will only sell if we win the Auction on the new house. We don't want to end up homeless.
Bridging finance seems the only option to sort the finances out, and we might come unstuck as I don't think we have 80% equity across both properties if they settle on different dates which we would try to avoid. I know we can afford the end result its just how do we get from A to B Any info would be much appreciated :-) depends who your bank is, I carried a $1milllion overdraft and a mortgage of $250k for 6 months, then sold two properties to repay the overdraft. I did use a broker to swing it thou. gabbysnana - 2021-10-14 20:24:00 |
| 5 | Bridging finance is a nightmare to get at the moment. You certainly can make your sales agreement conditional on you entering into an unconditional agreement to purchase a property. Your other option is to make a pre auction conditional offer on the property you like. |
| 6 | artemis wrote:
Talk to a broker, see what they say. It's their day job.Try jeffqv who posts helpfully here. Thank you. This is the 4th this week! FOMO alive and well it seems. OP, happy to help, I warn you it's expensive! jeffqv - 2021-10-15 13:30:00 |
| 7 | jeffqv wrote:
Thank you. This is the 4th this week! FOMO alive and well it seems. OP, happy to help, I warn you it's expensive! This is what the Agent has said we should do.
Put my house on market with a deadline sale ending the morning of the Auction of the new house, the offers will be unconditional from thier side and conditional on me winning the Auction. I will have finance pre-approval to purchase new house based on market estimate providing the offers received are equal to or greater than the market estimated and I win the Auction both properties go unconditional and both have the same settlement date (like normal sale and purchase process). There is enough equity in my existing property to raise the deposit for new house after the Auction, with the remainder payable at settlement. That's the theory anyway, just have to convince the bank that I can service it. No bridging required because the settlements will be on the same day Does this sound right? mbi15 - 2021-10-16 15:44:00 |
| 8 | So you are only going to get unconditional offers in your deadline sale?
What if they are not?
At what stage in the process has the agent allowed for you to seek legal advice and the lawyer to review contracts? desi1969 - 2021-10-16 17:36:00 |
| 9 | Do you actually have approval from your lender for THAT property? And what is this “market estimates” of which you speak? sparkychap - 2021-10-16 17:41:00 |
| 10 | Book a motel and storage unit for 3 months. tony9 - 2021-10-16 18:22:00 |
| 11 | tony9 wrote:
Book a motel and storage unit for 3 months. Did you actually read the thread, or just the title? desi1969 - 2021-10-16 19:02:00 |
| 12 | desi1969 wrote:
Did you actually read the thread, or just the title? I read the thread. And we have been there and done that. In the end only needed motel and storage for 3 weeks. Cost was low in the scheme of things, got more for the house sale as we were under no pressure. tony9 - 2021-10-16 19:06:00 |
| 13 | tony9 wrote:
I read the thread. And we have been there and done that. In the end only needed motel and storage for 3 weeks. Cost was low in the scheme of things, got more for the house sale as we were under no pressure. I'm still not understanding .... care to elaborate? How does booking a hotel and putting her things in storage (be it 3 weeks or 3 months) help OP who wants to buy a particular property that is going auction in 3 weeks time. ? desi1969 - 2021-10-16 19:16:00 |
| 14 | desi1969 wrote:
I'm still not understanding .... care to elaborate? How does booking a hotel and putting her things in storage (be it 3 weeks or 3 months) help OP who wants to buy a particular property that is going auction in 3 weeks time. ? Sorry did not make my opinion clear. The OP is pushing their luck and risking several $1,000s doing it that way. They are clearly emotionally committing to a property before they have the funds to buy it. This usually ends in tears. Better to get at least an agreed conditional offer for their place, then look for a new place. This may well mean some interim accommodation unless they get the right ducks in a row. They can then sell at the right price and not be under pressure and then buy from a strong position. tony9 - 2021-10-17 09:06:00 |
| 15 | mbi15 wrote:
This is what the Agent has said we should do.
Put my house on market with a deadline sale ending the morning of the Auction of the new house, the offers will be unconditional from thier side and conditional on me winning the Auction. I will have finance pre-approval to purchase new house based on market estimate providing the offers received are equal to or greater than the market estimated and I win the Auction both properties go unconditional and both have the same settlement date (like normal sale and purchase process). There is enough equity in my existing property to raise the deposit for new house after the Auction, with the remainder payable at settlement. That's the theory anyway, just have to convince the bank that I can service it. No bridging required because the settlements will be on the same day Does this sound right? As long as the settlement of the sale is the same day or before the purchase then all good. If not then open ended bridging is the only option if the purchase is really important. Good luck! jeffqv - 2021-10-17 16:21:00 |
| 16 | tony9 wrote:
Sorry did not make my opinion clear. The OP is pushing their luck and risking several $1,000s doing it that way. They are clearly emotionally committing to a property before they have the funds to buy it. This usually ends in tears. Better to get at least an agreed conditional offer for their place, then look for a new place. This may well mean some interim accommodation unless they get the right ducks in a row. They can then sell at the right price and not be under pressure and then buy from a strong position.
Ahhhh, so what you meant to say was ..
"Don't buy that house". Edited by desi1969 at 9:57 am, Mon 18 Oct desi1969 - 2021-10-18 09:57:00 |
