PBN-How it works

[priinnz]

Hi All,
Thanks for the advise/suggestions you have given us on this forum before.

Recently we saw a house advertised as "Price by negotiation". We liked it quite a bit and the agent was really enthusiastic about it.

However, she let us know that another offer has been recieved for the property and that party has 10 days to sort out their "stuff"

I am not quite sure how this works now.

Does it mean that the vendor has 10 days to consider (and compare) our offer? Or does it imply that even our offer is better than the other party, if they are able to pay up in 10 days the house goes to them?

Also CV of property is in lower 300s. Asking price is in lower 400s. and the other offer is in higher 300s. Not very sure how much to offer?

We are really confused. So please guide.

[Gladdynook]

sounds like there is a conditional contract on the house already. If this is the case then it will be ten days before it goes unconditional. The purchaser may pull out if they cannot get all conditions satisfied. ie finance or builders report

You can put in a backup offer, and the vendors could accept this but the prior offer would have to fall over for you to get the house.

However you should ask if there is a cash-out clause in the contract. If so, then if you can present an unconditional offer of an acceptable value, it forces the previous offer to go unconditional within 48hrs (this can vary). If they cannot go unconditional, then you can buy it.

If not then i'd wait to see if the other offer falls over. then go in with your offer at a lower level than the previous one (if you can find out what it was!). If it is unconditional then the vendors may well accept!

[Meehole]

Also could fall over if the offer is higher than a valuation and the purchasers are dependant on getting a mortgage.
If the agent was working for the Vendors they would have ensured that a cash out clause was inserted, I would have thought?

[speights boy]

If the agent was working for the Vendors they would have ensured that a cash out clause was inserted, I would have thought?

The agent can't ensure any such thing if the purchaser refuses to accept that as a condition.

[Meehole]

The agent can't ensure any such thing if the purchaser refuses to accept that as a condition.

I guess it's all down to negotiation. If I was the Vendor I would have insisted on the clause. If not that purchaser then there will be another!!

[speights boy]

I agree with you there Meehole, the vendor can insist on any conditional clause they wish.
The agent cannot, which was my point.

[Meehole]

Fair enough SB but if you were the agent, wouldn't you strongly advise your vendor? Maybe I am too pushy? Female after all!

[speights boy]

Yes indeedee.
I would strongly advise to have one; however I know some buyers would refuse to sign in that case.
(Another good reason to have one, unless you are desperate)