The vendor gets tough

Up to this point the vendor's agent had been leaving messages trying to get things moving faster. Possibly being pressured by the vendor. This had been going on for a few weeks. But the most recent call was different. The most recent contact had a vicious edge to it.

The message was along the lines, if exchange does not take place within a week the property will be put back on the market and listed with another real estate agent. It had a nasty tone. These vendors didn’t seem particularly nice at all. Of course, the agent had always been polite to me. I could tell that the real estate agent who rang me wasn’t pleased with the vendors either. After consideration, it seemed to me to be an empty threat.

From things we’d been told by staff from various real estate agents who knew this particular property this threat didn’t make much sense. Various agents had said the property had been on the market for ages. It was priced way too high initially and wasn’t selling. We were told that there had been a few offers in the past, but all had been rejected. They had shifted agents once and it still wasn’t selling. Anyway, it occurred to me that should the vendors have decided to relist the property with another agent I would have spotted it with the new agent and I could have worked with them. By all accounts we were the only people showing any interest in recent months. Chances are that we would be buying the property from whichever agent they chose to sell it through. Surely the vendor didn’t think listing with another agent would magically release a whole new bunch of potential buyers that would somehow have excluded us. Anyway, I was doing all that I could, under the circumstances. This was an annoying development.

I can understand the agent feeling miffed by this recent development. After all, it’s the agent who stands around showing people through the property week after week waiting for some punter to come along. I imagine they wouldn’t be impressed if, after hooking me, the vendors decided to pull the property from sale and change agents.

It was with this aggressive attitude of the vendors and all the badgering they had been doing in recent weeks that we decided to cancel the arrangement to buy the existing furniture that was in the house. The arrangement would have suited us, but it was also done in part to save the vendor the inconvenience of having to deal with it. They lived in Sydney and may not have wished to go to the trouble of moving it. Stuff them; they can keep their furniture. But we still wanted the property. Though the thrill and excitement of owning it had been eroded.

It was at about this time I heard some news that took my attention. There was a news item on TV. It may have been coincidence, but a few days before the vendor made this threat there was a news segment that took my interest. The essence of the news story was to say that real estate prices were moving upward again. The news report said that the upward movement related to capital cities only. There was also an implication that the financial crisis may have been coming to an end. I wondered if our vendors had spotted that news item too and may have considered they might have been able to get more money for their property. Perhaps they were wondering if there were any buyers out there willing to pay more than we had them locked in for with our offer. We were certainly dragging our feet somewhat. Though, the news item focussed on major cities, which was certainly not the location of this property. There was no comment in the bulletin regarding regional towns.

I suspect with finance being tight, jobs being lost, that investment properties or holiday houses would be getting sold, and country areas would be the first to see property sales. People are not going to sell the family home if they have an investment property. And that was the appeal for us: get a bargain if we can. On the other hand, perhaps the vendors were just pissed off with us for taking too long to finalise the deal. Who knows? Though, it’s not as though real estate prices had fallen to bargain basement give away prices. This property was okay and it was a fair price.

Anyway, it was remarkably soon after that news bulletin that the vendors seemed to be getting agitated and wanted things to move faster. I was still having difficulties with the finance people. I was on edge over the deal. I wanted the property, but had no funds as yet.

Being hassled by the agent

The pressure was on again in quicker time that I would have liked. The vendor’s solicitor must have mailed the contract to my solicitor immediately. My solicitor contacted me asking us to call into his office to sign the contract so that exchange could take place. That’s a commitment I didn’t want to make until I had some home loan finance organised. I put off making an appointment. That didn’t worry my solicitor, but I began to get badgered again by the vendor’s agent.

At a time when it would have been good to have things move quickly this new lender worked at a leisurely pace. If only the vendor wasn’t in such a hurry to close the deal.

My application with the new lender was progressing. I was contacted to provide documents in addition to what had been requested in the application package: more financial statements, rates notices etc. It was reassuring to know that the wheels of industry were turning. Though, I wonder why they didn’t ask for this stuff earlier.

Solicitor

The weeks dragged on. The vendor’s agent was getting pushy wanting our solicitor’s contact details. They wanted the contract signed.  I selected the first solicitor that seemed okay. What can you tell from an ad? Nothing at all. I went to the allhomes website which listed a heap of solicitors, and selected one from the range that was advertised.

The allhomes website advertised solicitors specialising in conveyancing. I had no preferences and selected the first one that caught my eye. No preferences, that is, other than avoiding one at Belconnen that stuffed up part of my finances on the last property I purchased. Don't get it wrong; I'm not a big league property dealer. I own a house where I live, and this new venture was something completely new for me. Anyway, after my last experience when buying my current home there was no way I was going to use that company again.

The company I had used back then was recommended by the real estate agent that I bought my Canberra house from. Perhaps that was the lesson: never trust a real estate agent. I had used William Heague at Belconnen. You would think a few solicitors or their reps meeting with a few banking people to swap a few cheques, sign a few documents, and pass some house keys across the table would be the formula for a simple exercise. The person Heague sent goofed. The settlement went okay, but they had organised a very large cheque to be made out to me, which should have gone into my account. The consequence was that I was paying interest on the loan for this huge cheque that should have been earning me interest.

Anyway, an email to the first company on the list brought a detailed response of their fees in very quick time and I was able to advise the real estate agent of their contact details. That kept the agent quiet for a time. Of course, at that point in time I had no finance approved from a lender. My application for a loan was in the mail, and so far I’d heard nothing one way or the other.

Here I was putting in an offer for a property, organising a solicitor, and as yet had no money. I wasn’t too worried, but I would rather the agent wasn’t pressing me so much. I emailed the solicitor’s contact information to the agent hoping to keep them off my back. I guess I was living in hope! Hope that my finance application would be approved.

Furnishings

Although the property was vacant, it was furnished. The vendors had been renting the house to weekend visitors and holidaymakers for a few weeks or days at a time. In fact, the real-estate ad gave a brief run down on how much the property could earn from casual rentals.

Short term rental properties at the coast probably do quite well, particularly as the local motels get booked out on long weekends and the Christmas-New Year holiday season. The summer temperatures at Batemans Bay are usually a few degrees cooler than Canberra, making it a very pleasant place to be. Winter too is a nice change from Canberra with its day and night temperatures generally always being colder than they are at the coast. Weather wise, the appeal of the coast is fairly universal throughout the year.

The house was kitted out almost in a motel fashion with almost everything anyone would need to move in and spend a few days. In addition to the furniture there were stereo systems, TVs, microwave ovens, crockery etc. Some of the furniture was in very reasonable condition; other pieces were virtual throw outs. I particularly liked the dining table and chairs. There were two double beds that looked okay. Though, I didn’t have much use for the bunk beds. The lounge chairs seemed well past their best, as were some of the cabinets and wardrobes. The crockery and kitchen items could have been good to have. Although I didn’t need any more TV, video, nor stereo systems they could have been OK to have. There was always ebay to get rid of any unwanted stuff. There was a mixed bunch of stuff in the house. We wondered if they would be available for sale too.

I had taken photos of all the rooms in the weeks prior to making the offer. I’d poured over them studying every detail of the place. In all, I think I had taken about three hundred pictures both inside and outside the property, and around the garden and in the garage. I knew exactly what all the furnishings looked like. With any property I’ve had an interest I’ve snapped a few photos. If I have been very interested I’ve taken dozens of photos. Perhaps four or five photos per room, including the hallway, bathroom, toilet, and laundry. And I’d go for close ups of anything that looks dodgy so that I can study it later, but in fairness I also take photographs of the good aspects as well.

It’s possible to miss things that will be captured in a photograph. You might not spot rusted gutters until you see them in one of your photos, or rotting timber decking, or a roof line that might be a problem or the general condition of the roofing steel or weather boards. Photographs can reveal so much when you study them later. Even aspects you weren’t able to study while inspecting the property become available to you later: the street, the neighbour’s place, and the general lie of the land. Inevitably, taking so many photos gave me an idea of the furnishings and fittings that were in the house.

Anyway, using ebay I checked the completed listing prices as a guide to estimating the value of everything. This is not a reliable method, but it does provide a general idea of price. There is no way I could match any ebay items exactly with my photographs, but a lot of ebay stuff comes remarkably close. Because I was checking completed auctions on ebay I didn’t care where they were located; just the last selling price. I think it helped.

If you use ebay and didn't know this feature was available, you should give it a go. When you are signed in, click on the 'advanced search' function, and tick the 'completed listings' box. When you search for anything its only completed auctions that are displayed. All the green items were things that sold at the price shown, which gives you a good idea of what people are paying. The red items are the things that didn't sell. It's really handy.

We made an offer on the furniture and contents which was subsequently upped to $2000 and we accepted. The deal was to be done privately. It would save us transporting furniture and saved the vendors from having to clear the house prior to sale. The vendors may also have priced it accordingly as they may have considered the cost of removal, or there may have been storage costs to consider. Anyway, what can you get for $2000? It seemed an okay price.