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thread: For sale by offer

  1. #1
    BellyBelly Member
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    Sep 2007
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    For sale by offer

    Is anyone experienced with this & can explain it better to me?
    My understanding, the best offer they get on their closing date (dec 18) they accept.

    But is it that simple? Will they say no if the offer is really low? Ok, if they're desperate enough to be rid of it, would they take 10, 000?

    The property has been for sale for $129 000 for a few years. They've just changed it to offers by close of business on the above date. The house next to me is the same, but is being sold by the bank from what I've heard. It was never listed for sale or a price. The one above, I'm not sure if it's the same deal or not? It could be from town gossip, but who knows.



    Is this my chance to get a house really cheap? Or is it really too good to be true? It needs work, but only cosmetic.

  2. #2
    Moderator

    Dec 2007
    Hork-Bajir Valley
    5,722

    Re: For sale by offer

    No idea...sorry, but could they be having an auction or something coming up?

  3. #3
    BellyBelly Member
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    Re: For sale by offer

    No, no auction. By offer, as is by 5pm december 18.

    I do remember now that it was repossessed round 12 months ago. Friends of my brother had stuff stored in the shed & as far as I'm aware weren't able to get it back.

    I don't think they'd bother with an auction here. Having to pay an auctioneer to travel when there is very little interest in the place anyway.

  4. #4
    BellyBelly Member

    Jan 2011
    2,075

    Re: For sale by offer

    I think they take all the offers and then make their decision, not sure if they have to sell to lowest bidder. It's worth a shot though

  5. #5
    BellyBelly Member
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    Re: For sale by offer

    Thing is, I don't know, but I'm wondering how many offers they'll get. If they only get the one, maybe they'll take it? Will be interesting to find out anyway.

  6. #6
    BellyBelly Member

    Nov 2011
    SE Melbourne
    2,975

    Re: For sale by offer

    I think it's like a silent auction. They get all the offers and then accept the one they want (usually the highest).

  7. #7
    BellyBelly Member

    Nov 2008
    in the ning nang nong
    12,163

    Re: For sale by offer

    It sounds like a sale by tender - you go and you actually sign up a contract, with a specific amount in, etc, and then they get all the signed contracts, and they decide which (if any) they want to accept.

    I don't believe that there's any obligation whatsoever for them to take the highest (or any) bid, but they may well take a substantially lower sum if they believe that's genuinely the most they're going to get for it.

    But as a prospective purchaser, you have to decide whether you put in the highest you can go (to give yourself the greatest chance of getting it) or taking a punt at getting it for a lower amount, by putting a lower offer in.

    But in my experience, there's no bidding war. They either do or don't accept (and then counter sign) one of the contracts, and that's that.

    If you put in $100K and someone else puts in $105K, they're not going to come back to you to see if you'll go to $106K.

  8. #8
    BellyBelly Member

    Dec 2006
    Melbourne
    3,737

    Re: For sale by offer

    It's getting more common to have a sell by date, we came across a few and we bought our new home that way, we ended up buying before the set date as we put in a strong offer and the sellers accepted two weeks into the campaign we did get to negotiate. We put offers in on another house and it was rejected we had to put in our highest offer and weren't given an option to go higher it all depends on the agent and they may ask you put up $500 as a deposit to show you are a serious vendor.

  9. #9
    BellyBelly Member
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    Re: For sale by offer

    I'm going to look with dad on Thursday next week. My uncle is a broker, so we're looking at possibilities & if I'll even have a chance to borrow given that I'm not currently working.

    It's apparently been condemned. There were foundation issues, but dad went for a quick look around & it appears to have been restumped. There is still the issue of asbestos in the ceiling though. So I'll find out more about that & the costs involved before I go any further.

    In a town of 200, I do think I may just have a chance. Even at a lower price. If I miss out, I can always go back to my original plan of buying the DoH house I'm in when I've lived here for the minimum amount of time. Another 18 months is a good amount of time & I'll have a good, long term part time job as of Jan/Feb. So will have a much better chance at finance.

    Either way, I will own my own home I'm determined to do this!

  10. #10
    BellyBelly Member

    Nov 2008
    in the ning nang nong
    12,163

    Re: For sale by offer

    Good luck!! Whether it's this place or another, good luck

  11. #11
    2013 BellyBelly RAK Recipient.

    Apr 2006
    Winter is coming
    5,000

    Re: For sale by offer

    Like Peanutter said, it sounds like a tender process. I was going to put in a tender when we moved, but the time frame made it awkward as we wouldn't have found out if we had it until a few weeks before we moved which wouldn't give us enough time to find somewhere else, as well as the fact I couldn't get insurance because it is on a flood plain.

    I would strongly suggest checking out if you can get house insurance on it - some places won't cover houses with asbestos, and if has been condemned at some point...well, I would certainly be ringing around to make sure it is able to get cover.

    They don't have to accept the highest or any offer. With our one we had to include a cheque for 10% with the application. If it were to be accepted they cash it, if unsuccessful they return it. Not sure if that is the same for your situation though.

    Good luck - it can be a great way to get a bargain house

  12. #12
    BellyBelly Member
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    Re: For sale by offer

    I didn't think of insurance. Thanks. I will look more into that. A lot of money to put into something I can't insure.

    At least I'll know what I'm up against in the future if it doesn't happen

  13. #13
    BellyBelly Member
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    Re: For sale by offer

    Has anyone had experience with asbestos removal? From Google, it actually doesn't look to excessively pricey. 5 bedroom, double storey home (second storey at the back of house, so bigger roof area).

    Is it easier to find insurance once asbestos is removed? I'll obviously find out any other reasons its been deemed as condemned. They do have to let me know these things don't they?

  14. #14
    BellyBelly Member

    Jun 2009
    913

    Re: For sale by offer

    Good luck!

    I def don't want to rain on your parade but go easy - sounds like it could turn into an expensive nightmare... Just remember that if it sounds too good to be true, it probably is

  15. #15
    BellyBelly Member
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    Re: For sale by offer

    I'm planning to go in with my eyes open, if I do. Dad will be checking it with me. He knows a lot about this sort of stuff & has done his own renovations etc.

  16. #16
    BellyBelly Member
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    Re: For sale by offer

    I've looked more into it & it seems that insuring house with asbestos is fine.
    There is only an issue with asbestos if it is damaged/exposed.
    I'm not sure about the plumbing, but the house was used 3 years ago for workers accomodation. Other than that, replacing flooring/carpet, paint & a fence seem to be the only things I'd need to worry about to start with. No photo's of the bathroom. Kitchen is outdated, but the house is liveable with a good clean up.
    Long as the foundations are ok & structurally there are no major issues, I'm positive.

    Can't see anyone being interested in loaning to me with no work though. Even if it is only 50 or 60k.

  17. #17
    BellyBelly Life Subscriber

    Jun 2010
    594

    Re: For sale by offer

    Has anyone had experience with asbestos removal? From Google, it actually doesn't look to excessively pricey. 5 bedroom, double storey home (second storey at the back of house, so bigger roof area).

    Is it easier to find insurance once asbestos is removed? I'll obviously find out any other reasons its been deemed as condemned. They do have to let me know these things don't they?
    It can differ by state and lending institution, but usually if you're borrowing a significant portion they will require a pest and building report on the property as well as their valuation. This would tell you if it worth buying or has too many issues that aren't just cosmetic.

    Remembering that even cosmetic things can eat through the money.

    We live in a house with some asbestos still left and grew up in one where it was removed. Most of the older home here hsve it. So long as you don't mess with it or otherwise get it removed professionally its not an issue we've found.

    Good luck, I hope you get your dream either now or in the future.

  18. #18
    Registered User

    Oct 2006
    In a house, on a hill with a big fat welcome mat!
    6,772

    Re: For sale by offer

    We just had it removed from our bathroom and laundry it was a few thousand all up.

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