Devestated. Our land purchase has collapsed

by Aussie Oz 16 Replies latest jw friends

  • changeling

    And for all of you complaining about commissions and thinking that's why the property was inflated I can assure you that you are wrong. Perhaps this particular agent was an idiot and did not know the market value of the property but that is a rare instance. Every agent knows a property cannot be mortgaged at above appraised value. It is in everyone's best interest to advise their client of the value of their property based on recent comparibles.

    Agents and owners want a quick sale. This benefits everyone. Pricing correctly is key.

    As a side note, sometimes you get a client who insists on pricing a property at a high price and nothing an agent says can sway them. An agent has two choices in this situation, walk away and not take the listing, or price it as the owner wants and watch him fall on his face.

    As a broker, I can assure you that we work for our commissions. The paperwork, legwork, legal hassles and craziness we put up with from clients makes us worth every penny we earn and then some.

  • PSacramento

    I think you misunderstand, because of commisions an agent has no issues trying to sell ABOVE the market value and agents certainly have no issue when the market is inflated, even if it will come back and bit them on the ass later, as it always does.

    5% is typical here and it can go up to 6 and even as low as 1.

    My friend sold their house in 2 weeks, had 3 viewings, spoke to their agent 4 times in total (outside the viewings) and the agent got 32K.

    Dude...I am all for making as much as you can but as the saying goes, something's got give.


    You did`nt get scewed..Count your blessings..

    Sometimes it takes a while to find and get a house..

    That is the nature of the beast..

    .......................... ...OUTLAW

  • palmtree67


    My ex and I tried to buy a large rental property one time, that would have set us up for life. We jumped through hoops - everything the bank required, we struggled and got. My father-in-law even gifted us $25,000 to make it easier to buy.

    The deal fell through and we were devastated, too.

    Later, we found out the guy who bought it - couldn't rent a damn unit out, as it hadn't been zoned commercial ( We were all lied to about the zoning ). He had to apply to the city to have it re-zoned, which took forever, and the guy lost his shirt.

    I'm not saying this is the case for you, but sometimes it can be a blessing in disguise. I beleive things happen for a reason. Something even better is on the horizon for you guys!!



  • Gregor

    Is the mortgage holder willing to take a short sale and the owner willing to take on the difference?

  • Aussie Oz
    Aussie Oz

    it seems that quite a lot of land in the district is for sale by different agencies... almost looks like they compare web listings to set prices, because not one single block list price is remotly close to the actual value. at least double what the last two sales of land were in 06 and 08.

    we are talking at least double what the valuers office places it at and what banks would lend for.

    I call 'lucky break'! perhaps they will sell for the real value but i dont think so.

    have been looking for other places... we seem to favour old halls and churches but this time i have got the bank valueing before i go make an offer!

    Zoning is very important as we want to have a home and a very large workshop for my business at the same place

    quick learning curve i say!

    at least i have recovered my senses and am not reeling anymore.

    Thankyou for the great comments... seems some of you have been in my shoes!



  • BurnTheShips

    My heart goes out to you after reading of this setback.

    Valuation of rural land is notoriously difficult.

    You say you want to pull up stakes and come to my country.

    We would happily welcome you here in America, but I think Australia is a great country too.

    Surely, you will find your way. It's good that you found out the property was worth less, before you found out too late.


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