When this property was first bought to our attention, it was advertised with a price guide of $435,000.
The vendor, a local investor, under instruction from the sales agent, to ensure the property would appeal to both owner occupiers and investors alike, had refrained from advertising the property for sale until such time as the property was vacant. Our early discussions with the sales agent indicated that the vendor (due to cash flow restraints) was not keen for the property to sit vacant for too long.
The vendor was obviously motivated and it seemed there was a chance that they would accept any reasonable offer quickly. As such, our Buyers Agents Bryan Loughnan and Euan Rose worked together to conduct their own independent market appraisal which suggested this property was worth between $420,000 and $435,000.
Unfortunately (or fortunately as it turned out) we missed out on the property. Our offer in the mid to high $420,000 range was rejected. As the vendor had accepted a higher offer from someone else, and we moved on.
Just under two weeks later, the sales agent contacted us, to let us know that due to personal reasons, it appeared that the successful purchaser was unable to satisfy the due diligence clauses which were due within 48 hours.
Bryan, knowing time was of the essence (wanting to act before the property went back on the market), was able to formally recommend this property to our very organised clients Sandy and Liz. With finance fully pre-approved and everything ‘ready to go’ our team were then able to instil a high level of confidence in the agent (and subsequently the vendor) that our contract would not fall over and they would have money ‘in their pockets’ in as little as 30 days. Given the vendors felt so much time had already been wasted and with the property still sitting vacant, a contract was signed at the very low price of $420,000, which was below our original offer!
As with every purchase, upon receiving the fully signed purchase contract, our team jumped into action to assist our clients with the due diligence and a variety of other tasks required in the lead up to settlement.
Our team went through all of the due diligence reports in detail. It isn’t often that it happens, however a few minor issues were raised and brought to our attention in the building and pest inspection reports. Whilst on face value these items were minor and generally cosmetic in nature, it did give us an opportunity to go back and negotiate for the vendor, at their expense, to attend to a few of these prior to settlement.
This was without a doubt an outstanding result for our clients.
Congratulations from the entire PROPERTYOLOGY team Sandy and Liz!
Bryan Loughnan is Propertyology’s Senior Buyer’s Agent. Bryan has a Bachelor of Applied Science majoring in Property Economics. In 2016, Bryan was a finalist in the Excellence Awards for “Queensland (REIQ) Buyer’s Agent of the Year”.