How much of a premium does a Cash offer deserve?

[anderlee]

@kisame2602 I got not idea. Was just playing devils advocate about how easy it could be abused

 

[kisame2602]

@anderlee That’s my point I think, I find it hard pressed to believe that it’s so easy to get out of a contract of sale without having any basis or official rejection.

Maybe my broker was not aware? At least they represented to me that it isn’t so simple to just back out of the contract and we would need an official letter from the lender (I guess the chances of a lender giving this to you - I have no idea about how easy/frivolous that is)

I like playing devils advocate

 

[anderlee]

@kisame2602

I find it hard pressed to believe that it’s so easy to get out of a contract of sale without having any basis or official rejection.

No. You show the bank that you can't service the loan and they will refuse to lend to you. It's that simple. That staistfies "pending finance"

 

[dardenel]

@kisame2602 U dont need to prove it. the contract legit says u just have to give notice youve been rejected. No one can force you to show this.

 

[prodigy]

@dewguru Scummy but that’s the industry I guess.

 

[esther300]

@prodigy It’s literally the only scum move the buyer has as opposed to all the agent bullshittery and lies.

 

[dcwalker]

@prodigy The Australian property market reeks of scamming strg

 

[darkersidedjewel]

@dewguru Does that hurt your chances of getting finance again if you have a few denied applications?

 

[dewguru]

@darkersidedjewel I don't know if it shows on your credit report as a denial or just a credit check from a lender.

 

[pastorajacquelinegarcia]

@dewguru Only shows as a credit check from a lender. But too many of these will make you instantly get declined from a lot of lenders so beware of that approach.

 

[elfendary]

@pastorajacquelinegarcia

But too many of these will make you instantly get declined from a lot of lenders so beware of that approach.

That is exactly what my lender told me when we were looking for ways to get out of a contract.

Long story short, after doing all the searches, we found that the main water supply for Brisbane ran through the backyard of this place.

We asked the bank if they could just decline the finance. They said it's not that easy, and if they did it would show up on your credit history and make getting the next loan a lot harder.

In the end the pest guy found activity of termites on a rather major retaining wall. So we withdraw because of that. In hindsight it was probably the right decision anyway as this was a 2m+ high retaining wall on the low side and was probably due for replacement anyway and was holding up the uphill neighbours large shed.

 

[pastorajacquelinegarcia]

@elfendary Definitely the right call. And unless it’s extreme you’ll just need to explain to the credit assessor why you had a recent home loan application on your credit history. They’ll accept that and override any auto decline on their end.

 

[nurseir]

@darkersidedjewel It’s not a denied application, it’s the client saying they don’t want to use that money on this house. Also nothing to stop them from telling the bank it was a Building issue, and telling the Agent it was Finance.

 

[elfendary]

@dewguru I had the opposite.

The only way in which the bank could decline finance was to give a valid reason, and that will show up on your credit check for the next loan.

 

[14_teen]

@dewguru Being denied finance has ongoing negative effects. "Have you ever been denied finance?"