Quote:
Originally Posted by Traum
Damn... that kind of sucks for the seller... So basically I can just go around to make a high offer, subject to financing, to bait the seller into accepting my high bid. String him around for a week or 2, and then claim I can't secure financing and walk out unscathed?
In a regular market, I might as well team up with 1 or 2 partners and use this to block out other potential high bidders, ruin the seller's listing by making it stale, and then swoop in with a lowball offer to seal the deal myself! There is like no protection of any kind for the seller!
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Well the seller can still show his place around and do open house he just can't accept any other offers for x days if he accepted yours. That's why there is this bank and forth negotiation. If the seller don't like your offer he can deny it and accept offers from others. That's why when the market is hot a lot of sellers would look for offers with no financial clause (don't need to get approve for mortgage) or some even have no subject at all.
Quote:
Originally Posted by fliptuner
You can get approved for a mortgage based on the equity you have in your current place. Before this craziness, subject to sale was commonplace.
I just offered 5% over asking on a place and told the selling agent that we'd be pricing our current place immediately and aggressively, to give confidence that we'd close. In the end the seller took a cleaner offer at asking price.
I'm seriously considering selling and renting for a bit. Everything points to a slow fall/winter and I want to be liquid for a strong offer.
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Good idea! when I sold my place I already have plans to live with my parents and put my stuff in storage for a bit till I find a reasonable price place.
Quote:
Originally Posted by Energy
You can do that but if the Seller thinks you're messing around they won't accept your offer if it has that subject. These things are usually done in good faith.
I used to see a lot of subject free deals but now more and more offers contain subjects.
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I think when I submit my first offer I have all kids of subjects (IE financial even though I don't need a mortgage). When negotiation started I remove most of the ones I don't really care/need so my offer seems better and it seems like I am interested in my place and want to negotiate for a better price I guess.
The person who purchase my place only need financial. But I guess given the place is only one year there isn't much need for a inspection or anything. I also have all my strata docs, minutes, new home owner warrantly etc etc so it was pretty easy to give the buyer all the info he needs.