Financing a property Steps in the purchasing process

50 Ceres Street Penrith – PART ONE

Last week Mooney Real Estate celebrated the unconditional sale of 50 Ceres Street Penrith !

Firstly woohoooo, Secondly OMG what lessons were learnt !

In all honesty, I thought by now I would have come across absolutely every obstacle that a Real Estate Agent could possibly face, but this one opened up a whole new can of worms.

The first week on the market went absolutely perfectly with approximately 54 enquiries; I knew we would be in for a good turn out. Saturday arrived and the house was sparkling, the vendors did an absolutely amazing job in preparing the house for the first viewing. 

We welcomed 18 purchasers into the home within half an hour (checking in people via my newly found Homepass app which I absolutely LOVE), we had such a phenomenal response and had offers coming at us left, right and centre. WE TOLD ALL POTENTIAL BUYERS UP FRONT THAT NO OFFERS WOULD BE ACCEPTED BEFORE THE SUNDAY OPEN!

Open day #2 was held on Sunday, with the vendors half moved interstate we decided to create a marketing strategy to encourage as many people through the house in the shortest space of time; the plan was to have the property under contract by Monday (Day 10 of the campaign).

Sunday came and went with another great turn out, 3 return purchasers from Saturday and 9 new purchasers.

Over the course of Sunday evening we contacted everyone that had viewed the property, some discounted the property for many valid reasons; the most common complaint seemed to be the lack of a bath and the size of the bedrooms… We ended up with 6 purchasers fighting for the property which was absolutely amazing for me as an agent.

After hours of negotiations we were finally down to the final offers and the offer of an absolutely beautiful couple was accepted… now for deposit time! Well here begins my week of stress; prior to accepting any offer all buyers are asked a series of qualifying questions¬† including “DO YOU HAVE PRE-APPROVAL FOR FINANCE?” to which the purchasers replied “yes, we have been approved for 7 figures”, and also “IF YOUR OFFER IS ACCEPTED ARE YOU WILLING TO SIGN THE CONTRACT, PAY THE 0.25% DEPOSIT TO TAKE THE PROPERTY OFF THE MARKET AND ENTER A COOLING OFF PERIOD?” to which the purchasers replied “yes”… After 24 hours of failing to sign contracts alarm bells where screaming!

As it turns out they were still in the process of getting pre-approval, they just wanted the property so badly that they were willing to stretch the truth (I say that rather than lie because it sounds a little less harsh). So here I was, I had this perfect marketing campaign, open homes where we were applauded for their absolute awesomeness and amazing vendors who were relying on this sale to be quick!

As much as I hate to be the “ruthless agent” I had to explain to the purchasers that the property would remain on the market until the deposit was paid, this is one of those situations where you can predict that no matter which way it goes someone is going to be upset but at the end of the day the vendors are my number one priority.

Wednesday came around and a very determined purchaser promised to transfer the 0.25% deposit straight after inspection, we raced out to the property and as promised the deposit was paid immediately…then came the heartbreaking phone call to make to the other party, damned if I do damned if I don’t.

Lesson number one in purchasing property in a hot market:

Do NOT put in an offer on a property unless you have pre-approved finance and DEFINITELY do not lie to the agent it will become very clear to them very quickly that you have.

To be continued….

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