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.

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

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.

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

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.

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

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.

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.

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!

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

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 :)

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 :)

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?

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 :(

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.

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.

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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?

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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.

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

I've already been looking at costs, so I have an idea of what I'm getting myself into. All estimates of course, but I'm getting a general idea.

My dad is pretty handy with a lot of these things. He's done his own building/renovations & plumbing. Including restumping the back of our house years ago. So as long as I'm willing to be patient, I'm sure he'd be happy to help for the right price :)

I know a couple people quite well who have certain trade certificates (but don't work in the area anymore), who would help out, or charge a low fee as well :) most companies/tradies charge a decent travel fee to come here. So the more help I can get local, the better for me & them.

Well we went for a look today. It's actually more livable than I expected. It was used as a shearers quarters then empty for 3 years, so wasn't expecting much TBH. The only thing that needs to be done preferable before moving in, would be re-roofing. The carpet isn't nearly as bad as I thought. It was good to look after a decent rain too. I know that water is coming in through the range hood & fire place. There is a little water damage in the roof around the chimney. No other leaks though. Floors are all solid. It's actually 6 bedrooms, but one is off the kitchen, so they've classed it as a dining room.

The front of the house, the original building (lounge/kitchen/dining) may need re stumping. But as I mentioned, my dad can do that. The rest is concreted. A few of the stumps have already been done. But it's not going to fall apart any second, & the termite inspection will give me a lot more detail on that.

The bathroom wasn't on the website, but it's actually probably the best looking part of the house. Clean, tidy, good size etc. The previous owner had water/power/everything cut off (repossessed), so I couldn't check taps etc. But gas hot water system is a newer instant, model same as I had installed on my house 18 months ago.

Other than getting rid of the ugly, ripped lino in the kitchen, there's not a lot that actually needs to be done straight away. I have to think about the size of it & heating over winter, but there's time to think about that now.

The thing is, that with the $20 or so thousand it might take to do it up, it'd still come in at less than they'd want for my house I'm in now, as it sits. And my house needs extra's this house already has. This house has space, it has a rumpus room, an entertaining/bbq area outside & double shed/garage. Verandah off the front. Mine is a basic, standard 4brm house. No verandah/roofing of any kind once you step outside. Only the car port. No shed... again, just the car port. So our carport is storage (that can be seen from the road, yay) & there's some shade cloth out the back as some form of sun protection. I sit out the back in the sun, or in the car port when outside...
If I bought this for the $160/180 I expect them to ask, I'd still need to spend another 10 or so to have a shed & basic out door living area.

It has so much storage. Huge island bench in the kitchen, as well as built in, double door pantry. The 2 bedrooms upstairs have built ins, & the main has a huge walk in. Again, I have none of that here. A single pantry & a single linen press. All sheets/towels/blankets etc etc are trying to squeeze in there & kids have to store under their beds, coz there's nowhere else... The christmas tree lives in a corner of my room. I look at it year round! lol

So the space would be awesome...

It sounds huge!! What is the government valuation on it? It is sounding really good - I hope you get it!

I'm not sure. They wanted $129k when it was on the market. They had an offer of $115k, but that person couldn't get finance together. Apparently it's still under his offer though or something?? Mum is interested in having it evaluated, but then if they only value it at 80k, & I get the loan, I'd only be approved for the 80k. There'd be no extra to do any decent repairs first. It'd be taking care of the most urgent bits & pieces to live in, then as I can. I'd really like to be able to at least repair water damage, the roof, kitchen floor & probably replace the range hood. There's also the issue of if there are plumbing problems I don't know about & may not be able to find out about til after.

Again, thankfully, with the help of Bunnings & dear old Dad, we can do all that ourselves, but I'd rather pay someone with a harness & scaffolding to do the roof, especially on the second storey.

Is there someone I can contact to find out if it is actually condemned? I think it may be rumors, but I would like to be sure. Mum suggested the local shire should know?

I'd strongly recommend getting a proper building inspection done. that was you know exactly what you are in for.

My brother is a builder, but he isn't trained in inspections and he quite often will miss something when checking out an existing house.

Might be worth the couple hundred dollars for the peace of mind. They also would be able to tell you if its condemned.

I havr thought about that. I'll have to look into costs in my area. It can cost up to $1000 for an evaluation with travel costs.
Will look into it. I always assumed a building inspection was required with a sale for some reason? Maybe that's just because so many people do it.

:o $925 fee for travel for a building inspection. Just for travel... Another $490 for the actual inspection!

Wow, that is a fair bit of travel allowance! Can you ask if they are coming to/through the area in the next while to split travel? Are they travelling by limo?!

The joys of living in WA. This was a Perth company. I'm 4 hours south. I'll see if any are closer, but the bigger regional centres are all 2-3 hours away.

My uncle is having mum & dad's property at home evaluated on Thursday to see if using my third of that will help me.

Mum did say that he would also arrange the building inspection & it would be included in the loan, so I won't need to pay it upfront. I didn't realise that. And I've found building inspectors closer, so hopefully there won't be such ridiculous travel costs.

Things are happening. I'm still doubtful, but it is a little exciting! Google tells me that CBA are about the only ones who will accept centrelink as a form of income, and they're the ones doing the valuation. The fact that they will accept it is a good start :)

I better keep christmas basic for now & get some actual savings in the bank, rather than just deposit money. Can only help, even if it isn't long term. I hope...

Nervous. Mum & dad's place is being evaluated today...

I'm crossing everything for you Xox

Or not. A key was supposed to be dropped into the office. It wasn't. They drove to the property (120k) & the spare wasn't where it was supposed to be either.

Wonder if this will help or hinder my chances :/ wish we weren't all the way over here now.

Oh. The spare was there. But there was a black snake next to it, so he left... lol oh dear

Well I hope you don't have to pay anything for a "nothing" visit.

Me too. Monday or Tuesday he should be going that way again.

Waiting for news. Valuation was done last week. They were just waiting for a dwelling entitlement check, which there isn't.
Would have the report done early this week. Keep forgetting close of business over there is 3 hours earlier than here lol.
Saving as best I can :/ which sucks for christmas, but hoping it helps in some way!

Ok, I have something to think about now. There was a suicide in the shed. I'm not sure that changes how I feel about the place or not.

Im not sure how to delete pic. I know what it's about now though.

You could demolish the shed and put a new one up elsewhere when you get they chance.

At this stage it doesn't bother me. I didn't know the person. But his family are all still here & his son comes to stay with them every so often. I didn't feel anything when near/in the shed that made me uncomfortable before I found out. So other than it being a big thing for others in the town, at this stage I feel it'd be ok. But as you said, these things can be changed.
Mum also pointed out that the agent has a legal obligation to tell me things like this & that could reduce the price.

It was also pointed out to me, by my uncle, that unless I am planning long term, not to buy. But I think I'm ok with that. I know that I may have trouble selling, but I know there are people here who look for long term rentals.

I know now it's not condemned. I feel this is my best chance to own my own house. The valuation came back & it may be enough to work.

I'll send off the paperwork & see what happens. The bank could easily still say no yet. But the chance is there. I'm paying pretty much the same in rent now as I would be in repayments, & my rent goes up $15 a week as of Jan. I know I can easily cover any interest rate rises in the future at this amount. So far I have a good idea of what repairs need to be done.

Any ideas of anything I may not have considered? Will be calling legal aid for advice tomorrow. The fact that I'm still legally married needs to be taken into consideration apparently :/ this is something I don't even want him knowing about if I can help it. Not for a while anyway :/

I think it's always good to get into property if you can. As time goes by people will forget things like that.

I don't think ex needs to know until your divorce gets settled and that will only be what happens when that ask for your financials.

I think it will feel nice for you to have your own place. It's always better than renting. I'm crossing everything - you deserve some good luck
Xo

So, there's 4 days left til offers close. The house next door was sold the same way & surprisingly, it sold. For half what they wanted for it... (only 20k, in much worse condition).

Mum reckons I should put an offer in. Just waiting for dad to call up & check their loan balance. If it's under 80% of original loan, they can be guarantor for a certain amount. Then my borrowing power would be enough to cover what they want for the place, even though I'm trying for less. Hopefully this means having the extra to fix it up :)

Uncle (mortgage broker) says not to offer yet, because the bank could still say no. Given my only income for now is centrelink, it comes down to a case by case basis & putting it together to look as good as possible.

Everything is looking ok so far. Just not sure about offering just yet. But I don't want to miss out!

A little unsure of what to do. See what happens tomorrow I guess.