After one withdrawn bid, two properties that got away and a third where we were outbid by $10K, we are finally one step closer to the Great Aussie Dream of home ownership.
Well, almost.
2 weeks ago today, we made an offer on a 4-bed, 2-bath house that's a short walk from Werribee Plaza and Beth's future school and in a neighbourhood widely acknowledged to be one of the better pockets in the area. We offered $20K below the asking price, using the offer of a quick settlement as our negotiating chip.
The offer was acccepted by the vendor on the anniversary of our arrival in Melbourne. Isn't God's timing just beautiful?
For our protection, the offer was made subject to a couple of conditions that are de rigeur in property transactions:
a. Subject to finance, and
b. Subject to satisfactory pest and building inspection.
These clauses allow us to legally exit the contract and recover our deposit should the lender reject our loan application or if the inspection report discloses areas of major concern.
As I write, we're awaiting news from the lender on the outcome of the loan application. We should have an outcome by the end of the week.
The pest and building inspection reports have also come in. Reading the reports has been quite a learning experience. For quality assurance, we had chosen as the inspectors Archicentre, the building advisory arm of the Royal Institute of Architects.
The inspectors visited the property on 2 separate occasions to check the condition of the house inside and out. They then submitted a verbal report over the phone, followed by a written report containing an inspection summary and a list of recommended actions to take.
Apart from an adjoining fence that needs replacement and a DIY electrical lead installation that can be remedied with the aid of a qualified electrician, the expert opinion is that the house is well built and has been well cared for by its owners. Isn't that wonderful?
What's particularly helpful is that the report comes with:
- a free 12-month $10K structural guarantee
- a free 12-month $10K timber pest guarantee
- technical information sheets on home maintenance, health and safety warnings, info about termites and borers
- home safety checklist and
- a cost guide for various types of renovations.
Last weekend, we attended a mortgagee auction on the same street for a double-storey home that was in a sad state of neglect.
Just for the fun of it, we had a bet to see who could predict the eventual sale price more accurately. We had already seen the inside: carpets ripped up, floorboards scratched and worn, the swimming pool drained...The whole place cried out for a complete overhaul. CA said it wouldn't fetch more than the low 200's. I said at least 280.
The hammer fell at $288K. I should have punted on a nice latte :-)
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