Urgent help / advise needed

If it sounds to good to be true it often is.

If the property is genuinely worth $600k plus then there's no reason why it would sell for half of its value. I'm sure the REA would have a long list of contacts interested in this property if that was the case.

With auctions – you need to exchange on the day and go through with the purchase. Therefore, you need to be confident that finance won't be an issue so a clean credit history, good serviceability, employment history, etc will go a long way.

Hope that helps.

Jamie

Nath,
        I'm relatively new to the area as well but when I have expressed an interest in a property for auction, I have always been rung before the auction with encouragement to the point of just asking me along anyway even when I have stated that I'm not interested. My reasoning for this would be that
1. It looks good for the realtor in front of the vendors that they've been doing their job.
2. The more people= increased chance of competition and offers.

Fingers crossed for you, sounds a bit ridicuous though!!

Mark

You might consider getting a buyer's agent to do some quick research and if necessary attend the auction to bid under your instructions – eg if you have a set limit give them an instruction up to 85-90% of that amount so you still have some leeway if the auction may swing your way.

He'll work something out? haha. Why woul he tell a complete stranger about a deal that could prpfit someone hundreds of thousands of dollars.
You're dreaming!!!   It looks better for them if there are a lot of people there (especially one that gets the auction started).

He can't work anything out.
I f you bid you MUST have 10% deposit WITH YOU. Do you have $30,000 for Sunday?

And a lot of bank repo's want 28 day settlement. Are you SURE you can get the remaining $290,000 (with stamp duty etc) in that time. If not there are penalties. Check the penalties on the contract. You may end up losing your $30,000.

Auctions aren't a good idea if you don't know the rules.

Hi Nath

It sounds very much like he is mustering his bids to show increased interest in the properties. However, having being involved in property repossessions for 2 major Australian banks, I have seen stranger things happen, especially when the bank is desperate to offload the property for accounting reasons. However, I doubt they will drop lower than any minimum reserve that they have established as this is the minimum they need to break even on the loan, otherwise it will be booked as a loss and this obviously has an adverse effect on their balance sheet. However, be mindful of the fact that at times banks are seeking to free up the bad debt provisions held on their balance sheets for accounting reasons. It’s a good idea to go to the auction and get as much experience as possible. In fact I’d suggest going to quite a few auctions to get a feel for the process before you reach the point of actively bidding for a property. As for your funds being held overseas is there any specific reason? If and when your ready to purchase you’ll need them at hand to settle on the property unless of course you have obtained short-term bridging finance.

Hi Nath,

I've enjoyed reading this post – also look forward to hearing how you go on Sunday!

Definitely a good idea to keep your hands in your pockets – but you've got to check it out… you never know!

So Nat,

how did it go? Was it a learning experience

No. The vendor is only allowed one vendor bid. If it was $370K it would be no use saying $500K. They put in the bid in the hope that someone (or the original bidder) will put in another bid higher than theirs.

You only know how low they'll go when they say SOLD!!

Please let us know. Or if you are not bidding yourself tell us the address and I can look it up on RPdata.

P.S. Sorry to hear about your dad. 
AND- I LOVE Belgium (except that I put on heaps of weight while there). Damn those frites and mayonnaise.
And chocolates

Heh Nath

I am standing by waiting and have my fingers crossed for you.

Cheers

Yours in Finance

Hi Nathalie,

He would have found 'somethign else' in you rbudget range that will suit you perfectly.