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  1. #1

    Default Making an unsolicited conditional offer

    I'm after some basic advice on making an unsolicited offer. We will shortly be completing a purchase of a section. Unfortunately due to changing personal circumstances we it appears we will be unable to afford to build on the property. However, the land is in a highly desireable area and if we sold we would at least get our money back, and probably make around $25K profit.

    However, the silver lining is that should we sell we can afford to buy our current rental, which is in a fabulous location and really only needs insulation, ventilation and better heating to make it warm and dry.We love the location. The property was for sale last year, but becuase we had a long term lease on it it did not sell. We can afford what they want for it and pay less in mortgage than in rent. We have 6 months left on the lease and we are contemplating making a offer conditional on our section selling. The vendors agent is not someone we wish to business with and the landlord is based and is a little particular. We rent through a property manager. Who do we approach and should it be us doing it or our lawyers?

    As is probably abundantly clear we are newbies to this and in a difficult situation, so would appreciate advice from old hands.

  2. #2
    Join Date
    Jan 2011
    Location
    NZ
    Posts
    218

    Default

    call the owner directly for a chat to test their level of interest before putting anything down on paper.
    once you contact the agent, he/she will want a cut.

  3. #3

    Default

    1. Is your section on the market now ? It needs to be if you are making a conditional offer.

    2. For your budget, seek advise as to whether your profit is taxable income.

    3. You say you can afford the property you rent. Is that based on last years price or the value today?
    (am assuming the house is not currently on the market)

    4. If the owner subsequently does list with an agent, strongly suggest to them they have you as a named exemption on any agent listing contract.
    Last edited by speights boy; 03-09-2013 at 06:39 PM.

  4. #4
    Join Date
    Oct 2011
    Location
    1/18 Seaview Road, Paraparaumu Beach
    Posts
    267

    Default

    Hi triplem, I agree with the above. I would call the landlord direct as any reasonable person would see the win win of dealing direct to save on agents fees if the sale price was fair. If the landlord is keen, and gives you an indicative sale price, you then need to arrange a pre approval for the loan - subject to section sale and expected net proceeds. A valuation of the property you rent is also likely to be required, especially if borrowing over 80%. I think once you have an indicative buy price from your landlord then you can swing into action around your approval and then the valuation on the property if required by the bank. Good luck!
    Craig PopeCraig Pope Mortgages & Insurance
    www.craigpope.co.nz

  5. #5
    Join Date
    Apr 2008
    Location
    Kapiti/Horowhenua
    Posts
    111

    Default

    Just be careful that you didn't have any discussions with the agent about possible purchase when it was previously on the market.

  6. #6
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

    Default

    Agree with what others have said. Re going to the landlord first, it may not save the landlord any money as a lot of rental agency agreements include commission for the rental firm if a tenant ends up buying the property. But still, don't know unless you try and going direct to the vendor is completely allowable.

    Best of luck!

  7. #7

    Default

    Thanks all...I agree that the profit from the section sale does need to be looked into re tax. We know what price he would have accepted last year with an agent involved as friends of ours nearly brought it. He's tried to sell twice with no luck. But yep, it might be worth attaching a valuation.

    How do I find out his contact details? I work at a local council and can see then there, but I'm unsure if that is legal to use this information? The guy is a real prat and we had to give him 14 days notice to fix things. Plus he lives overseas. We haven't had direct contact with him, but I guess we need to just man up and do it.

  8. #8
    Join Date
    Dec 2010
    Location
    Cambridge, NZ
    Posts
    1,375

    Default

    Tough given he lives overseas. Does he own it personally or through a company? If through a company, you can look it up on the Companies Office website and perhaps try the address for service?

  9. #9
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

    If you buy the property file from the Council won't the current owners name be in there? If its not free / confidential on the online rating database.

    Otherwise join property Guru it will have it.


 

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