Hi People, just went to my first home open whereby the bank owns the property. Spoke to the agent and he said that i would have to pay for a pest inspection and structural report before even putting in an offer as the bank wont take an offer subject to these elements. Is this normal? Seems absurd paying $450 just to put in an offer on a house especially when my chances are already low because it will be subject to the sale of my house and the bank will want the money asap…
Hi there
Yep, it's pretty standard. Banks don't mess around – they're just looking to get the sale done and recoup their money.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Well there you go…I find that fascinating that when you borrow money from a bank its a prerequisite to get these reports done but when they sell they change the rules (sort of)
Oh well you learn something new everyday!
I haven't seen any banks require building and pest inspections before.
And there is no requirement for you to get one to purchase this one. It is recommended though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Do you want to get these inspections done and if yes and if the Bank (Vendor) don't want to accept the conditional offer (which is normal as they want unconditional sale), you have to risk your money without even putting the offer. So in short, it is your choice as this spending doesn't guarantee your offer being accepted. Like it or not mate, you will be making an unconditional offer in this case and perhaps shorter the settlement duration better chances you have to secure the property.
I've noticed banks don't allow any clauses unless it gets passed in.
Few I've been to a few who want 10% deposit, will not allow early access, 30 days settlement and no pending finance.
Hi Phorsha,
I would be checking with the agent whether you get cooling of period or whether you are buying under auction conditions. If you have a cooling off period it is quite often possible to get your inspections done during this period.
Another note if you are unable to get a condition like pest inspection or building inspection past it will be very unlikely that the bank will accept subject to sale.
It can be a good idea to look at a go between loan, if you really want the house, for two reasons;
-First of all to get any property subject to sale you are going to have to pay top dollar and lose all bargaining power due to the current market, best way to think of this is what would it take for you to accept a subject to sale on your property
-Second when you sell your property you could end up selling for far less than you would like to, due to the urgency to sell. Generally an agent would only let you have about a 6 week period for subject to sale. In the current market this a very short period and you may find yourself having to slash your price to bring out a buyer.Go between loans can be a very cost effective way of getting that home you want and avoiding the extreme stress of having to sell very quickly in a slow market.
Good luck with your purchase. Hope this is helpful to you. <moderator: delete advertising>
Dustin
[email protected]
0430 110 304Yes banks do not accept conditional offers during a mortgagee sale. Hence why if you want a B&P report, you have to pay for it yourself and take on the risk if it’s good or bad. Good luck with it.
There's also the risk of someone else purchasing the property whilst your arranging the inspections.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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