A question

[Marc]

Hello,

Here is an email that came to me yesterday - does anyone have any comments for this person on their questions?

Dear Marc,

Im not sure if you're the right person to ask, but I've been wondering if you could give me some advice on how to go about buying a house when it is up for tender.?

What are the things I need to know?

We already have a $16,000.00 mortage now, which we pay $750.00 a month which is no problem to pay.
We would very much like to buy the house next door to us, as our neighbor has since passed on and everything was left to the salvation army.
We have asked them if we could have first options to buy the house if it went up for sale...they agreed, but I now see it is up for tender.
We have been asked to look after the place, which we have done anyways while our neighbor was still alive, up till now.

So could you please send me some advice, your reply will be much appreciated.

Thank you,

Cheers

Marc

[Julian]

Firstly, the person was not rewarded for their efforts in looking after the place by being given first option to buy like the vendors promised. Now might be the time to slacken off on keeping the place pristine. If you help someone and get kicked in the teeth for your efforts it could be seen as an indication to desist from helping.

Secondly, tenders are the worst way for buying a property as the buyer lays his/her cards on the table while the seller keeps his to himself.

My advice would be to submit a tender at a price you would like to pay for the property, but put a counter note on the tender advising that you would like to be informed if a higher tender is received and be given the opportunity to revise your bid.

Remember that as it is a neighbouring property it may have more value to you than to someone else due to the opportunity to subdivide. For example you may be able to subdivide both sections at the back by putting a single width shared driveway between the two exising houses (half a driveway width on each existing section, perhaps). This might give you the opportunity to create two properties out of each one, whereas other buyers may not be able to accomplish this so easily.

Another thing you can do is try to subvert the tender process by putting in a seperate offer with a 48 hour time-limit to accept - thereby potentially stopping the tender process mid-stream.

The only good thing about the tender process is that the other bidders will be in the same boat, and be feeling just as uncomfortable as you. Unless the property has some exceptional appeal (beachfront, seaviews, development site, etc) the opposing bids may be low. But no one can say. People behave in strange ways when buying property.

Julian.

[muppet]

Hi Marc

Firstly I would suggest that they go and get a copy of the tender documents and have a good read of them.

Secondly find out what properties in the immediate area are being sold for to give them some idea of what the property in question may be worth.

Regards

[Marc]

Hey thanks team!

[Josko]

Firstly, the person was not rewarded for their efforts in looking after the place by being given first option to buy like the vendors promised. Now might be the time to slacken off on keeping the place pristine. If you help someone and get kicked in the teeth for your efforts it could be seen as an indication to desist from helping.

Secondly, tenders are the worst way for buying a property as the buyer lays his/her cards on the table while the seller keeps his to himself.

I might be misreading this, however I read the property itself might also be in the hands of the salvation army, if that is the case then they as an organisation would have to follow their procedures.

Go back to the person you talked to and find out more information. Get the tender documents, find the market value of the property, add a note on the tender document detailing your conversation with the person who advised you could have the first pick of the property.

Good luck, be fair.

[CJ]

As has been stated above, the Sal. Army will have their procedures to get the most money possible. So do what is suggested and put in an offer ask for the right to resubmit should someone put in a higher offer. Even if it is just an informal phone call to you saying "someone has offered $X. Make a friend with the right person. Tell them you were helping this old guy by maintaining it while he couldn't. Show this charitable side and they might show theirs, especially if it is just a right to reoffer (offical or unoffical) as it wont effect the amount they get.

CJ