some weeks ago a house came on the market that i fell in love with as a PPOR in the town we want to move to in 2 years – we are trying to pay off our car loan before we move towns. i was thinking – Fab! We can rent it out in the meantime. 4 bedder. 3 bathroom. literally right on the beach. u can hear the waves from the patio but not see them cos a house is in the way.
so i jump on the phone and its already under contract. bugger. that was 5 or so weeks ago.
anyways, i heard a rumor from another real estate agent on friday that the contract fell through. so i rang up the agent selling the house and they said that the house hasnt had the contract crash yet, BUT they have already had 2 finance extentions and it looks like they will need a third one.
so this is where i get panicky. cos i want to get that contract off the other person and into my hands.
over the weekend i offered the real estate agent a backup contract to purchase the property for the same price as on the current contract. i hope the vendor accepts!! i guess (hope) ill find out tomorrow. if they decline I will offer them more than the current contract – as in my opinion the listed price was under market value. this way at least the vendor wont be able to give another finance extention on the current contract, and itll transfer over to me. i have no idea what the current contract price is, but we reckon we will be fine up to about $400k.
i just had to vent to someone cos ive got noone to talk about it to! so these forums have come in handy
i wont give the town obviously but this is why im excited:
listed price for the house is mid $300ks (4 bedder, 3 bathroom, 680sqm). inside newly renovated, however the yard/driveway needs alot of work – who cares! there is another 690sqm vacant block of land on the same street very close to it and its priced $300k. the prop is on the beach yet only 10 mins drive from CBD. the house i want is the oldest on the street but is surrounded by gorgeous houses. in the last 2 years 3 houses have sold in this street. two went for over $1m and the third house sold for just under $700k.
ive offered to fly down tomorrow to sign the contract if need be.
because this is our first PPOR thats a house (we've rented the last 8 yrs apart from us living in a unit we owned for 12 months) i know im emotionally involved. but its exactly what we want. and from an investment angle its a good one too!
oh boy. i know im not gonna get a wink of sleep tonight
wish me luck!! send me ur happy investment vibes!! any advice for trying to get a backup contract?!??? ive never done anything like this before.
good luck with it. Have you had the building and pest reports done?.
If the contract falls through, you may be able to buy the ones that (hopefully) have already been done for the previous buyer. The REA may even give them to you.
The only suggestion I can offer is to offer a quick settlement, say 4 weeks if you have things organised and can do it. The vendor is probably feb up by now and will go for something quick. Dont offer any more than what they are currently going to get. Put the offer in writing telling them that this offer will expire within date of a couple of days or so. They will know you are serious and that you will walk away if they dont make up thier minds.
DONT let them know how much you want the property as they might try to get cheeky and up the price AND want a quick settlement.
i havent gotten building and pest reports done yet cos i only found out on friday at 4:30pm that the house may soon go back on the market.
i thought i should wait until the vendor comes back to say yes or no to a backup contract before I organise those. but i didnt even think about the REA giving them to me. i have my normal guy that does my inspections – id probably prefer to get him as he only does inspections, no building work. so his inspections arent bias towards getting him some more work. but i can still organise those to be done while its under the other contract if need be. im not sure at the moment when the next finance date is for them.