Devestated. Our land purchase has collapsed

by Aussie Oz 16 Replies latest jw friends

  • Aussie Oz
    Aussie Oz

    Two weeks of waiting for the papers to sign, of making plans, telling friends and family about our land with the old hall on it.

    Yesterday morning i take a call from the bank... The independant land value prior to the bank giving the money has come in.

    $24000 LOWER than the contract price. So, the bank cannot offer any more than the 'real value'. We cannot afford to pay more than this value or we have instantly gained 24k negitive equity before we even start.

    I sat on that news all day, took wife to the opening of an art exhibition she is in that night, but on the way home had to tell her the deal was dead. I have not seen her cry like she did before...

    Spent much of today on the phone to the bank and the agent. The agent in talks with the valuers... All real estate values in the area are considered to be double what the land value dept says they are. How can the agents get it so wrong? All the land around the town are going to be affected by this, all the vendors hoping for good $ on the agent 's advice.

    We are hurting, but also feel so sorry for the two ladies that had to be told that the land they had was actually 'worth' a third of what they first listed it for. And still half of what they sold it for. The only thing i could do was put in a new offer... a lousy low number. I dont blame them for not taking it either.

    This block had it all for us....

    feel like giving up this stupid quest for future security and blowing it all on a trip to america. Don't think we will, but shit, this leaves a bad taste in my mouth.

    such is life


  • transhuman68

    Real estate in our capital cities is supposed to double in value every 7-10 years, while a property in the boondocks will never be worth much. You can buy a property in the sticks anytime you want because nobody else wants it.

  • Aussie Oz
    Aussie Oz

    very true... but you gotta worry when even in the boonies its overpriced.

    The area has suffered a setback because of issues to do with failed developments and river levels, but it seems the real estate agents pretend it hasn't.


  • Mad Sweeney
    Mad Sweeney

    What often happens in situations like this is the land or house actually ends up selling for the correct market value (not the inflated value the agents tell sellers it is worth) but it doesn't happen until months and months of this sort of heartache have passed. If agents wouldn't hype up the value of properties simply to convince sellers to list with them, this sort of thing wouldn't happen.

    Painful for you as buyers, yes, but even more so for the sellers who were counting on that money.

    Sorry you didn't get your place but you will. Keep shopping. Good luck.

  • Scully

    Sounds like real estate agents trying to inflate their own commissions. To me, this is NOT operating in good faith on the part of the real estate agent. All they are doing is leaving the buyer and the seller emotionally drained when the sale doesn't work out as planned.

    They aren't making good reputations for themselves by over-stating property values. But good on the banks for installing a reality check in the process. In the end, if you are still willing to purchase the property at the corrected market value, is there some way you can work out a for-sale-by-owner arrangement and leave out the real estate agent all together? That way these charlatans get NO commission, the sellers get all the proceeds of the sale and you get the dream property that you want..... just thinking out loud here.

  • cult classic
    cult classic

    That's disappointing. But something better is probably on the horizon. Hang tight!

  • Black Sheep
    Black Sheep

    It sounds to me like they might be doing you a favour. Buggered if I want to pay more than something is worth.

    With a bit of luck the sellers in the area will wake up & price their properties more realistically. Be patient. Let all of the agents know you are still in the market. It payed off for me.

    Good hunting.


  • tec

    I'm sorry Aussie!

    We just had financing fall through for the house we're buying. It was so disappointing, because everything was all set up and ready to go - except for a mistake on the part of the lender. BUT, we stuck with it and now we're closing in ten days. If you were really happy about the land, then just hang tight. You'll find another property and it'll work out, and it'll be worth the wait. I hear so many stories about the first time screwing up somehow.


  • PSacramento

    Stuff like this would not happen if agents worked on set prices and NOT on commissions.

    Sure there is always someone that pays more than they shoudl for a property, sending the area out of whack and that is great for sellers, of course, but in the long run what is best for ALL is soemthing going for the price itis worth.

    Government is happy with prices going up because they get more Tax dollars out of it.

    One local politician used to call it a "sweet headache" when property values got out of whack, of course no one wanted to foot the blame when the bubble burst.

    Hang in there Aussie, this MAY be a good thing for you, you just never know.

  • changeling

    Don't despair. Either the owners will sell to you at market value or you will find something else. Trust me on this, there is always something else.

    And please, don't blow the money on a trip or anything else. Real estate is always a good investment in the long run. Hang in there. :)

Share this