hi all
just a warning for those who are investing in NZ, a friend was looking at buying a property there recently for about 45k, in his due diligence process he discovered the agent owned the house he bought it in april for 19K,
so just be careful guys
regards westanHi Westan,
What about the “guzzumping” that goes on there?
[
] Eyes open []Cheers
Sooshie []When a problem is created the solution is created simultaneously
sooshi
yes i know what you mean[}
]i was asked to put in an offer because there were multiples and when i did, the agent rang and said i’d had my offer accepted, the next day he rang and said there was a mistake and i didn’t get it.[
], obviously i’ve never deal with them since, thanks you just reminded me i’ll email them and remind them what happened and then tell them how many house i’ve bought (not through them).[]
bye westanyou can’t be gazumped if you have a signed and counter-signed offer.
you put in your offer, the agent should type it up, fax it to you via your solicitor or ‘subject to approval by my solicitor as to all terms and conditions of this contract’ if you are in a rush and don’t have time to contact your lawyer or it’s the weekend or something – touch base with the solicitor first to get the exact wording though. the rE agent will need to know who you are using.
So then you should put a time-limit on your offer in a hot market, or to put pressure on the agent or the vendor to make a decision and so you don’t get gazumped. But if the vendor countersigns, you have a deal – impossible to be gazumped, you can still pull out though if you put in the ‘subject to’ conditions.
i think in NZ we are seeing a boiling hot market like in Aus (OK a kind of cuter smaller version) where properties are being sold ‘off the bus’ before they even make the internet or the shopfront. This is in contrast to when i was looking earlier this year when some houses had been on the market for years.
The people that were saying ‘you’re crazy to buy there’ are now telling me that they read an article that where i bought is the ‘new hot place’ to invest. kinda like tasmania. by the time you’ve read a 6 page spread on the hot tasmania market in the age, it’s too late! hehe
cheers-
MiniHi there,
Okay… situation..
I put in contract, comes back countersigned by vendor…with new condition ‘If vendor get’s a higher offer on the property, they hold the right to terminate this contract and neither party can claim against each other’.
Hmmm… okay, so meanwhile I pay for Building Inspection, LIM, solicitor fees, loan establishment fees, phone calls etc etc and should the vendor wish to execute this condition… Goodbye money…no recourse.
I crossed the condition out and faxed it back and told them “XYZ (nicely of course [:0)])”, which then they accepted without the condition, but this was the 2nd time it happened when putting in contracts.Another situation… a property for sale (not ‘tender’, not ‘negotiation’ etc) “Am I the first person to make an offer on this property” I ask..Agent “Yes”..I make an offer, and sign at (for eg) 10am, at 2pm another person puts in offer… agent says “Put in your best offer, because there is another offer I’m presenting to the vendor this evening”, at 4pm another buyer puts in an offer, the agent says the same thing… End result… vendor is offered a few K’s higher than the asking price.
These are situations that have occured and I’m sharing them with everyone so you go in with your eyes open (even though mine are slowly shutting at this moment [
][][|)]).Mini, you’re right, it’s not truly guzzumping, and your suggestion about putting a time limit on the contract is sound. But I think this might have some level of Deja-vu for you [
][:0)]Thanks for your contributions Mini, it’s great to have your advice and Westan’s advice on NZ (along with all those people who give advice on NZ, eg, Muppet, Zanis, Diamond et al).[^][^][^]
I’m slowly fading now…must goooo
Cheers
Sooshie []When a problem is created the solution is created simultaneously
deja vu? yes, certainly, it has happened to me before – actually – I put a thread up about it months ago called ‘bogus offers???’ which is probably in the treasure chest. and guess what, it was the same agent as you are dealing with, even.
basically parts of NZ are getting as hot as Australia was a while back, so people are trying it on.
i think it’s a good idea to consult the lawyer if gazumpy clauses are flung on you. i mean, good idea to reject it as you did, but a lawyer might have been able to advise other options – did you ask them about it?
My lawyer was in the loop at all times when i first bought, and i would advise the same, especially if it’s your first time buying in a new territory or even from overseas.
cheers-
miniInteresting info guys.
Sooshie, I wouldn’t be very impressed if I saw those conditions on a contract (especially if it was added after I first signed). Fortunately I haven’t had any agents try it (yet!).
Like Mini, I usually get my solicitor to check it before I sign (get the agent to fax a copy straight to them).
Westan, fortunately in NZ it’s relatively easy (in most cases) to find out the sales history of properties.
regards,
Rod.
Rod,
I am interested in how you find out the sales history for porperties in NZ?
Thanks,
David Paxton
“You Only Live Twice”Hi David,
They’re available at https://www.quotable.co.nz/default.aspx
You’ll need to register, a sales history costs $3.95NZD. It’s not available for every property though.
You can also find out rating valuations, title details etc.
regards,
Rod.
you can get data for free from the RE agent. get them to print you out a couple of sheets of info in your price-range for say the last few months.
there are lots of things you can do with the data, i.e. work out the ratio of GV to purchase price in your area from the dataHiya,
If the RE says ‘no’ or ‘it’s too difficult’ ask again until they give in. If you have to, tell them all the RE’s have been helping you out like that [
](Got to run M-in-law about)
Cheers
Sooshie []When a problem is created the solution is created simultaneously
I agree entirely. I’ve had no trouble getting RE agents to supply info. But I do find the printouts from QV online interesting.
I’ve got one here that shows a property that was sold for
$42K in 1987
$48K in 1992
$36K in 1996.It’s currently listed at $69K, rating valuation is $55K.
Rod.
] Eyes open [
]
], obviously i’ve never deal with them since, thanks you just reminded me i’ll email them and remind them what happened and then tell them how many house i’ve bought (not through them).[
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