Hi all,
Say you’re in a town and you are planning to buy 1 property only. But you find three of four properties that might be ok depending on how negotiations go.How do you go about submitting offers on all four while knowing that your really only going to buy 1. Like, if you have 4 offers in and then you accept the first one and then the others come back accepting your offer. Then can you just say ‘no I’ve changed my mind? will you still get your holding deposit back?
Also there is the issue of the holding deposit payment on each offer. I suppose the idea is to just use a low holding deposit for each offer? And when should they pay back that holding deposit if the deal does not go through?
What do others do in these cases.
One final one. Once your put a holding deposit down how much risk is there to be gazumped?
Thanks for all thoughts.
You have 3 days “cooling off” period from the moment you make your offer. You can withdraw your offer or reject any offer made before this time lapses, HOWEVER the law (in Victoria) states that this “cooling off” period is NUL/VOID if you seek legal counsel re any offer made to purchase real estate (conveyancer ok, solicitor – big no no).
Jo
Hi Marky,
you do it simply with clauses…subject to finance, subject to whatever you want as long as the other party agrees to it.
Steve mentions a ‘sunset clause’ is really good to use.
$1000 holding deposit is good to put down. And if you can manage several +CF prop. go for them just set there settlement dates apart by a few weeks each. And to be ‘gazumped’ – the way to avoid this and to get your holding deposit back is that when you submit an offer, don’t just sign it but rather change it to suit your needs, change the dates, change anything you want to meet the your needs, then sign it and send a holding deposit through.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Cooling off period is from when one has *signed* the contract- not from when one has made the offer.
markyMark, it is my opinion that you should only make offers on properties that you are willing to buy. Why make an offer and get a vendor’s hopes up if you are not going to buy it?
Re gazumping, probably if word gets around that you are making offers with no intention to buy, then RE’s and vendors would happily gazump.
kay henry
Hi Marky again,
I agree with Kay – don’t make too many offers if you’re not intending to buy them. This is dangerous for all other investors. If many ppl make offers on many properties without the intention to buy them, this shows the agent and vendor than many investors are interested in it (when they are really not) and so they thus raise the price of the property because of false offers.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Hi Mark,
I actually don’t have a problem with what you are proposing provided you let the vendors and agents know that your offers are submitted conditional on the first one being accepted by the vendor within ‘X’ days.
This way you are up front and honest, letting both the vendor and agent know where they stand in relation to the other properties of interest to you.
I am sure we can all relate to this process being on the other foot ‘there is another buyer interested in the property too’
In my eyes, provided you are open and up front, there is nothing to lose, including your integrity.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
i dont se a problem in making multiple offers as you suggest. it wont create a fake market because all of your offers, im guessing, will be low balled. i have offered in on 3 places at one particlar time with 3 different agents.
all offers were 20 pct below the market and i told each agent that the first one to come back on my terms would get the sale.
only works when there are a number of places up for sale, you dont get emotionally involved in any of them, and the market is off the boil.
cheers
Kay Henry,
Yes, I am sorry, I should have said from when you make your “signed offer” / contract. I don’t know about other states, but here in Victoria, an offer is never verbal, it has to be in writing, and as such has to be SIGNED, and is a legal contract !!
Sorry, I just ASSUMED that the MarkyMark and anyone else out there reading my comment was savvy enough to be aware of this fact.
Thanks for the correction….
Cheers,
Jo
Hi all,
Thanks for the comments. I did intend to buy a place, but I did not intend to buy them all. Just the best one. What happened was that I put in an offer on one property and I put in a sunset clause in the offer. While I was waiting to hear back I found this other deal that looked good as well. But I did not put in an offer because I already had one in. But if the offer that I had put in had not been accepted I would have missed out totally due to time constraints.I must admit that I did not think of the moral issue that putting multiple offers in might have. But after reading comments from others I think I agree with Derek if your upfront and not hiding anything then I can’t see a problem. By being upfront you’re giving others the chance to act in their own best interests. On the other hand this could make it difficult for other investors as deals are being held up. hmmm….
…at the end of the day Marky, its you and your conscience.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Monopoly,
You can make a written offer anywhere.
If the vendor accepts it it can become a contract – otherwise it’s simply an ambit claim
We frequently put in multiple offers – you just inform all the agents that you’re doing it & that you’ll be accepting the first X that come back…if you can, do all the deals that come back
Cheers,
Aceyducey
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