Can you add sweetener on an offer for a property
| # | Post |
|---|---|
| 1 | For example a $500 supermarket voucher or something similar. Or is this not allowed under real estate law? mone - 2021-10-25 00:45:00 |
| 2 | Box of Steinlager Couple of Durty Durty Gurls AND A Clean one... redhead18 - 2021-10-25 02:11:00 |
| 3 | Why not just offer $500 more? sparkychap - 2021-10-25 07:40:00 |
| 4 | mone wrote:
As long as what you are offering is legal you may offer what you like. It simply becomes part of your offer. When drafting the ASP #1 should be crossed out. Under #2 something like "See clause 20 of the further terms of sale" added. You then describe your offer in full. I am unsure a grocery voucher would tip the scales but you never know. Edited by johnston at 8:06 am, Mon 25 Oct johnston - 2021-10-25 08:05:00 |
| 5 | Maybe a tent or a campervan just in case the vendor is left un-intentionally homeless after moving out ....... brouser3 - 2021-10-25 08:09:00 |
| 6 | johnston wrote: you can offer an incentive outside of the offer to swing the deal, many have. gabbysnana - 2021-10-25 09:03:00 |
| 7 | gabbysnana wrote:
You could but there might be enforceability issues. johnston - 2021-10-25 11:09:00 |
| 8 | I know, a slab of Steinies and a double ticket to the stock cars so the vendor can treat the missus after the sale goes through....if she is still around. Just the thing to swing a sale in the leafy suburbs. shanreagh - 2021-10-25 13:08:00 |
| 9 | Not a bad idea If an owner of a supermarket offered $5000 worth of vouchers this wouldn't actually cost them $5000 so they would get a better deal than just offering $5000 cash. loud_37 - 2021-10-25 13:28:00 |
| 10 | loud_37 wrote:
As a vendor I would be suspicious. I would ask the agent about supermarket vouchers. After the agent disclosed the connection I would up the price. johnston - 2021-10-25 13:46:00 |
| 11 | Reason I am asking is that bank gives you certain max you could pay for property. If you go over that and bank finds out, would bank raise question that now you are offering more than limit, which comes out of your servicing ability. mone - 2021-10-25 14:46:00 |
| 12 | mone wrote:
The bank will only approve the amount they wish to. If you exceed that amount it's up to you to find the difference or risk being in default. johnston - 2021-10-25 15:50:00 |
| 13 | The price is only one term in the contract. Before doing things like that make sure some of the other things are aligned with what the vendor is looking for such as the settlement date. A hefty deposit can make a difference and of course making sure your offer is cash. superdave0_13 - 2021-10-26 07:41:00 |
| 14 | superdave0_13 wrote: Hi what do you mean by offer is cash? mone - 2021-10-26 20:19:00 |
| 15 | superdave0_13 wrote:
Anything more than a 10% deposit is redundant. johnston - 2021-10-26 20:38:00 |
| 16 | mone wrote: it can mean a few things depending on the person. 1. You have all the money sitting in the bank and require no finance Number one and three are the "cleanest" as far as the buyer is concerned, although most people aren't in position 1. Number three is risky. You need to ensure the lender is fully approving of finance on your property at the price you are offering. This might mean getting a valuation / building reports in advance. This is NOT the same as "pre-approval" which just means "we'd lend you $x". With tightening of lending rules (LVR and CCCFA) and rising interest rates, finance isn't as certain as it might have been a few months back, and according to Tony Alexander's survey of brokers this morning, they are seeing more deals being pulled by banks. So 2 is still a pretty strong offer and safest for you. sparkychap - 2021-10-26 20:57:00 |
| 17 | The member deleted this message. sparkychap - 2021-10-26 21:00:00 |
| 18 | Thanks for that. We are not selling, it will be first time buyer. We are in number 4 i guess, which is we have pre approval but waiting for bank to review the property we are going for.. mone - 2021-10-26 23:35:00 |
| 19 | johnston wrote:
Not in a vendors eyes. It makes a difference I assure you. superdave0_13 - 2021-10-28 09:36:00 |
| 20 | mone wrote:
An offer with absolutely no conditions including waiving your rights in clause 6 of the S&P agreement. You have done all of your due diligence pre offer including your lawyer being happy with the title. superdave0_13 - 2021-10-28 09:47:00 |
| 21 | superdave0_13 wrote:
Then the agent is misleading the vendor. Shonky conduct from the agent. Edited by johnston at 11:02 am, Thu 28 Oct johnston - 2021-10-28 10:55:00 |
| 22 | johnston wrote:
Wrong superdave0_13 - 2021-10-28 16:02:00 |
| 23 | superdave0_13 wrote:
Nope. The kids (1st home buyers) just entered in 70 K as the deposit amount instead of a percentage and that was way less than 10%. Offer accepted. thumbs647 - 2021-10-28 16:37:00 |
| 24 | thumbs647 wrote:
That's cause the purchase price comes first. superdave0_13 - 2021-10-28 17:20:00 |
| 25 | superdave0_13 wrote: So whats the benefit of a higher deposit? sparkychap - 2021-10-28 17:27:00 |
| 26 | There doesn't have to be a benefit, it just has to look better than the other competing offers. However, one would be the potential for an early release which would enable the vendor to purchase elsewhere. superdave0_13 - 2021-10-28 17:40:00 |
| 27 | superdave0_13 wrote: Anyone advising that the early release of more than 10%, to be spent elsewhere would be foolish. sparkychap - 2021-10-28 17:42:00 |
| 28 | Or be prepared to take a risk to secure the property they love. superdave0_13 - 2021-10-28 19:30:00 |
| 29 | superdave0_13 wrote:
You bet it is. I am glad you are not one of those ignorant agents who believes a deposit greater than 10% somehow benefits the vendor. Be careful, they walk among you lot. johnston - 2021-10-28 20:28:00 |
| 30 | superdave0_13 wrote:
What are you going to do for training when this board closes? I will put you out of ignorant bliss. Any deposit greater than 10% is returned to the purchaser hence it is redundant. johnston - 2021-10-29 06:40:00 |
| 31 | johnston wrote:
Wrong again. it's a term that can be fully negotiated, superdave0_13 - 2021-10-29 14:37:00 |
| 32 | johnston wrote:
I'm not saying that. I'm saying it benefits the buyer. Especially when all other terms in the contract are the same as a competing offer. superdave0_13 - 2021-10-29 14:38:00 |
| 33 | superdave0_13 wrote:
Say a 1 million dollar sale with $100k deposit. Purchaser defaults, vendor retains $100k less perhaps agents fees. Nothing unusual there. Same sale and default but with a $200k deposit. In the standard form ASP how much does the vendor retain? johnston - 2021-10-29 15:39:00 |
| 34 | Nice try.... You know very well it's possible to make changes to the standard S&P. Clauses can be added and removed ad hoc. superdave0_13 - 2021-10-29 17:29:00 |
| 35 | superdave0_13 wrote:
So you agree a greater than 10% deposit is redundant now? johnston - 2021-10-29 17:39:00 |
| 36 | No you amend the S&P to suit. superdave0_13 - 2021-10-29 17:54:00 |
| 37 | brouser3 wrote: Haha that's good! tegretol - 2021-10-30 10:37:00 |
| 38 | superdave0_13 wrote:
Let me get this right. You amend the ASP to allow the vendor to retain all the deposit regardless of how much? And this is supposed to work in favour of the purchaser how? Another tip. Just because an ASP is amended by a hapless agent, it does not mean the amendment is enforceable. johnston - 2021-10-30 11:24:00 |
| 39 | You're just making stuff up now. superdave0_13 - 2021-10-30 20:21:00 |
| 40 | superdave0_13 wrote: He's not. you know. You might like to consider why that 10% clause is there in the first place. sparkychap - 2021-10-30 20:25:00 |
| 41 | Can it be crossed out sparkychap? superdave0_13 - 2021-10-31 13:15:00 |
| 42 | superdave0_13 wrote: Of course - plenty of things in an ASP you could cross out, but wouldn't be advisable so to do without someone having explained the explicit risk to the parties. As I said before - think about why the clause is there. Edited by sparkychap at 1:45 pm, Sun 31 Oct sparkychap - 2021-10-31 13:44:00 |
| 43 | We just bought an over two million dollar property and put $25k as the deposit, they had no issue it wasn't even mentioned... austimac - 2021-10-31 14:15:00 |
| 44 | superdave0_13 wrote:
A chimp could. johnston - 2021-10-31 16:36:00 |
| 45 | johnston wrote: superdave0_13 - 2021-11-01 08:54:00 |
| 46 | superdave0_13 wrote:
I would. I am not so sure about you and the chimp. johnston - 2021-11-01 09:00:00 |
