Property relisted after selling at auction.

[Atheum]

Hi all.
I just saw a property relisted that I bid on at auction. It is now price by negotiation.
I emailed the agent and she said the purchaser couldn't get the finances from the bank so it's being relisted, the auction was approx 3 weeks ago. I am still potentially interested in the property

Questions
I'm assuming the winning bidder has lost their deposit? Winning bid was $750k
My top bid was $730k

Id like to make an offer, should factor in the fact the vendor now has the other purchaser deposit as profit?

Or should I also assume that the purchaser not getting the funds isn't the reason for it falling through. As there were some clauses about the vendor removing unconsented deck encloser/ dining room by a tradesman before settlement?

Thanks

[Bobsyouruncle]

Just decide what you are willing to pay and try to buy it. The owner having a forfeited deposit in no way reduces the value of the property.

[Atheum]

Of course not. But if he was happy with $750k and he now has say 40k of it already for example. He might be happy to just get the remaining $710k as that is what he was happy with selling the property for.
It's almost in the vendors best interest to have the purchaser not complete the sale. Easy money.

[Bobsyouruncle]

He might be happy to just get the remaining $710k as that is what he was happy with selling the property for.

But he would have to be stupid to do that. It will sell for 750K again that's my point.

[Atheum]

Not necessarily, after 4 weeks of marketing only 3 people were bidding. Myself and two others. There was one person willing to pay $750k and they couldn't pay for it. The next highest bidder might no longer be interested. And that leaves me.

[Bobsyouruncle]

So decide what you want to pay and try to buy it. None of us can advise you specifically as we are not the seller. Some sellers will hold out for their asking price no matter what, some want to sell.

What I would say is your best bet of getting the best price is to do something quickly. Make a cash unconditional offer with short settlement urgently. As soon as you can.

[Bobsyouruncle]

So decide what you want to pay and try to buy it. None of us can advise you specifically as we are not the seller. Some sellers will hold out for their asking price no matter what, some want to sell.

What I would say is your best bet of getting the best price is to do something quickly. Make a cash unconditional offer with short settlement urgently. As soon as you can.

With a 48 hour sunset clause.

[Connor]

Let us know how it goes.

[nivlek]

so the previous buyer who couldn't get finance, does he/she need to pay anything to the vendor / agent as penalty?

[Atheum]

I assume they will just lose their deposit, if it was 10% they would have lost $75k.
To be honest I don't think I could take 75k off someone because they had finance issues and couldn't settle, wouldn't sit right with me.