The 1 Week Erskineville Purchase!

The client

When I first spoke to this couple, there was a lot of moving parts to contend with. They had a very small geographical area in which they were looking to buy around Newtown and Erskineville. There was no guarantee on the timing of finding the right property given the search was limited to a handful of streets.

They both currently owned property, and both needed to sell their respective properties to be able to settle on a purchase. They also didn’t want to end up doing the double move.

The strategy came down to selling one property, then looking to purchase with a long settlement, allowing time to sell the second property.

The engagement

The client called me on a Friday afternoon. They had seen a property that day pre market with an agent who is renowned for never selling pre auction. The property was scheduled to have the first Saturday open the following day. The auction was scheduled for 3 weeks later.

They were keen to buy it and we got to work on ensuring all our due diligence was lined up.

The contract was not straight forward and needed to be worked through in conjunction with other considerations around settlement timing. We organised to have the team at Test Before You Invest come out and assess the property. This helped my client understand future potential and costs on renovation works.

We also needed to thoroughly review a Development Application on a nearby property to understand potential impacts.

The property

Properties that ooze natural light are always a buyer favourite. This one did not disappoint. Every room is filled with light and the strategic use of skylights has really helped. A garden oasis at the rear also allows for privacy while entertaining.

The property was well kept, however, had scope to renovate cosmetically and also structurally. Multiple options available to turn the 3 bedrooms and 1 bathroom into a 4 bedroom and 2 bathroom. Helped by the fact the land is over 200sqm with limited adjoining walls.

The negotiation

The negotiation required specific terms in the contract around settlement date given my clients need to sell both their properties. We also needed to negotiate for no land tax adjustment as my client would live in the property but was purchasing from an investor.

A week after my clients had first seen the property, we’d done all our due diligence and were in a position to submit an unconditional offer. This included a 66W certificate to waive our right to cooling off.

We’d done our research on comparable sales and understood where value for the property was.

The timing was also strategic - they’d had one Saturday open and one mid week open. Enough time to get some feedback, but also most buyer’s are still not sure if they are serious about a property after seeing it once. Friday morning our unconditional offer was in.

The outcome

After many phone calls and back and forth on the Friday, we reached ‘offer and acceptance’ by 5pm.

The agent knew we were serious buyers and not messing around.

By 7pm Friday evening (just one week after my clients called me), we had exchanged contracts and my clients had purchased their dream home!!!

Learnings

Never underestimate the power of your solicitor or conveyancer to assist in obtaining information that can assist you in the negotiation. In this case, the settlement date was a key term given my clients need to sell two properties.

Our offer, and negotiation strategy, was helped by the vendors solicitor saying that the vendor needed a settlement date in 2024 as he had financial obligations to meet before the end of the year. This information, combined with the agent who never sells pre auction, being open to sell pre auction, gave us a good insight into the owners motivations to sell.