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Thread: Advice-buying in WA, mortgagee in possession

  1. #1

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    Default Advice-buying in WA, mortgagee in possession

    I'm looking at buying a repossessed home here in WA. My uncle is a mortgage broker & is working on my finance application, to be put in today, with my dad as guarantor for 20% of the loan.

    My uncle owns a decent amount of real estate, but all in NSW. He knows the market & how things work quite well over there, but not so much here.

    Now, first of all, the house has an offer closing date. This Thursday, the 18th. When I spoke to the RE yesterday, he said he is expecting 2 other offers, as well as myself. I take that to mean there have been no offers as yet, and that one or two others have looked at the property.
    The property was on the market for $129 000. They had an offer of 115 that fell through. I was hoping to put an offer of 80 in, but my dad is insisting 60.

    The house next door was sold in the same way. They wanted around 40 000 for the property & let it go for 21 000, because that was the offer they got on the day.

    Going by this, maybe offering 60 is reasonable? I thought they'd just laugh me out the door, but dad is insisting that no matter what my offer, the RE needs to present it to the vendor.

    The RE's wording tells me that under 100 would expected.. he asked what sort of offer id be willing to make, I said between 70 & 80. His reply was 'I'd be going closer to 100 than 70'...

    All I can do is guess what that means of course, lol.

    I'm hoping someone can give me advice on what is acceptable considering the property is a mortgagee sale. I have the offer & acceptance form here ready to fill out...

    Some support & encouragement would be a bonus too. I'm so nervous. Trying not to get my hopes up, but I want this to work!

  2. #2

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    Default Re: Advice-buying in WA, mortgagee in possession

    Just remember the RE agent wants to get a good price so he get a better payment.
    He will never tell you to put in a low offer, they just don't do that.
    Have a look at what properties like the one you want sell for in the area, that will give you an idea of what to offer.
    They often tell you that others are putting in an offer even if they have only looked at the place.

  3. #3

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    Default Re: Advice-buying in WA, mortgagee in possession

    When I went to put in a tender on a place at the start of the year we were told that there were several other offers. It sat on the market for another 6 months after the closing date so I doubt anyone actually followed through (we didn't).

    Don't put too much into what the RE said because they work for the seller to get the best price. However, 60k is less than half of what it was previously listed for. Perhaps go middle ground and offer $70k?

    Good luck

  4. #4

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    Default Re: Advice-buying in WA, mortgagee in possession

    My thought was 70k. Mum & dad are prefering 60 because of the work it needs. There are a few minor things that need doing before we can even move in.

    And dad just said to say since he's going guarantor, he has a say & he says 60. Obviously this is my choice, but that is him giving me a reason to go that low, then negotiate from there, since I need extra money to be able to put the work in that needs doing.

    And hope they just send me a counter offer...

    The house next door isn't as roomy, & needed a lot more work, but same number of bedrooms, an extra bathroom & it sold for 21.

    Its hard to compare in such a remote area though. I have tried.

  5. #5

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    Default Re: Advice-buying in WA, mortgagee in possession

    If that is the case with next door then yes, start low and see where it goes from there.

    Remember, when they reject your offer don't sound desperate, just be matter of fact and say 'I will get back to you'. If they know you really want the place they will keep pushing for a higher price.

    All the best

  6. #6

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    Default Re: Advice-buying in WA, mortgagee in possession

    Not important now
    Last edited by ~clover~; December 18th, 2014 at 03:18 PM.

  7. #7

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    Default Re: Advice-buying in WA, mortgagee in possession

    What happened Clover?

  8. #8

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    Default Re: Advice-buying in WA, mortgagee in possession

    There was a suicide in the shed of the property about 10 years ago. I was considering bringing the topic into my offer price, but felt it was bad taste... even though I'm sure people do it all the time. I ended up just saying 'due to the history of the property'. If the RE asks I will explain more. I'm not even sure he knows? They legally don't have to disclose something like that in WA unless I ask, but given the size of the town, I already know. It was a pretty nasty way to leave the world too IMO


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