Wednesday, 9 March 2011

Gazump

Gazump
In New South Wales there are different laws of negotiation then other states
There is an out clause to all deals called the Gazump.
click link below to read the link I have taken this from.
http://www.fairtrading.nsw.gov.au/Tenants_and_home_owners/Buying_property/Making_an_offer/Gazumping.html


I have been gazumped many times, and the trick here is to just move on to the next deal. RE do it all the time they have a wife and kids and need the higher commission. If you are happy with your offer then be happy and look for an even better deal. I think if your a good person things happen for a reason, try and understand that some things are out of your control and amazingly, when things have not worked my way, I look back at it 6 months later and say ok well that happen and that lead me to this, so I accept it.

Gazumping , Now this happens, all the time yes all the time. Almost so that you have to expect it to happen so much that I tell my RE Agent , don't Gazump me. But how do you do this????
You don't want to pay too much , but you don't want to loose it either.
The plain fact is that it is going to happen.
I don't think highly of agents that do this after they have told you that there are no other offer's and it is up to the the buyer to accept your offer.
Don't believe them but also don't believe them when they say there is another person bidding against you.
They sometimes make excuses and things happen. They could say it wasn't me some other guy at the office did the deal too.....I have heard it all.
I look at every property for what it is worth its true value to me, and look at so many deals that there is always another one available to me.

Ways to avoid.
The only good thing about Gazumping is that you can outbid someone else with in the time before the owner signs a contract with the other buyer.
The importance here is that that the contracts have to exchange and deposit paid.
Only then is the property yours, up until this time you can get Gazumped.

So like I say it can happen so asap exchange the contracts and get solicitor on to the signing asap.
Don't let your solicitor slow things down and hassle the sellers solicitor to sign asap aswell.
What ever you do don't accept that when the agent says the property is yours it is.
The property is yours old when the solicitor signs.
 

Also once you submit an offer there is a clause you should be aware of
five-day cooling off period commencing from the time of exchange of the contracts. Only the purchaser can waive the cooling off period and it can be extended by agreement. During this time, you can do a building and pest inspection and have the contract examined. However, if you rescind the contract during this period, you forfeit .25% of the purchase price to the vendor, as the property has been taken off the market for a period of time. The amount forfeited is recovered from the deposit you paid under the contract. If the amount of the deposit is insufficient, you will have to provide the necessary additional funds. You should find information relating to the cooling off period in your contract.

REMEMBER your solicitor is your best friend , they will check the contract , and if you have a good one they will exchange quickly and tell them you don't want delay Please. Good idea to send your solicitor a bottle of wine after this. Reminds me I owe mine a bottle.

freebie of the day

I have to credit this one to a good mate Roy.
go to http://www.nearmap.com/ . This site is great , it is better in some cases then google , because
it is sometime s more recent and can really show you new developments and also great, too look back at properties you looked at and maybe did not buy to see what they did with it. please don't look at my address , I think I was nude sunbathing at the time....
remember you can get to this blog quickly at www.iloveproperty.net.