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How To Make A Conditional Offer More Appealing · That Home Loan Hub

• 0:10
  SPEAKER_01: And one more from our good old friend called Facebook.
• 0:14
  SPEAKER_01: And I've got George in the house.
• 0:16
  SPEAKER_01: Hello, George.
• 0:16
  SPEAKER_00: Hello, Zebroneso.
• 0:18
  SPEAKER_01: Right.
• 0:18
  SPEAKER_01: First home buyer.
• 0:20
  SPEAKER_01: How can we make our offer conditions more attractive?
• 0:24
  SPEAKER_01: I'm gonna read you out a post.
• 0:25
  SPEAKER_01: Yep.
• 0:25
  SPEAKER_01: I like reading out posts.
• 0:27
  SPEAKER_00: Yeah.
• 0:27
  SPEAKER_01: I put my own spin to them.
• 0:29
  SPEAKER_01: First home buyer here looking for some advice.
• 0:32
  SPEAKER_01: We've had a few offers declined, and with one of them, we're told that our conditions were a factor.
• 0:38
  SPEAKER_01: At the moment, our offer needs to be conditional on finance.
• 0:41
  SPEAKER_01: 15 working days, as we need to use KiwiSaber, which is interesting.
• 0:46
  SPEAKER_01: I'm gonna address that separately.
• 0:47
  SPEAKER_01: A builder's report, valuation, and limb report.
• 0:50
  SPEAKER_01: These are requirements we need to meet for the bank before they will release the funds.
• 0:54
  SPEAKER_01: Has anyone been in a similar situation?
• 0:57
  SPEAKER_01: Is there anything we can do to make our conditions more attractive to a vendor without removing the conditions we need to meet for finance?
• 1:05
  SPEAKER_01: It was all in bold.
• 1:07
  SPEAKER_01: So I had to read it out that way.
• 1:08
  SPEAKER_01: Any advice or experiences from other first-time buyers would be really appreciated.
• 1:13
  SPEAKER_00: I think that question is all about you, isn't it?
• 1:16
  SPEAKER_00: You know, because it it basically comes down to them talking to their bank or their mortgage broker and finding out what they can cut down.
• 1:26
  SPEAKER_00: Now, I think a big one there is is like the Kiwi Saver.
• 1:30
  SPEAKER_00: Because Kiwi Saver can be used in two different ways.
• 1:34
  SPEAKER_00: Some people need it at the very beginning, there, for the deposit and everything, and then some people only need it for the settlement.
• 1:41
  SPEAKER_01: Yeah.
• 1:43
  SPEAKER_00: So if it's only for the settlement, then I don't even know.
• 1:47
  SPEAKER_00: Do you need Kiwi Saver in there at all as a condition?
• 1:50
  SPEAKER_00: No.
• 1:50
  SPEAKER_00: You don't.
• 1:51
  SPEAKER_00: Yeah.
• 1:52
  SPEAKER_01: So I think people are getting mixed up here.
• 1:53
  SPEAKER_01: And again, this is the classic example.
• 1:57
  SPEAKER_01: If you are working just with a banker that hasn't explained things properly, you should really have an advisor by your side.
• 2:02
  SPEAKER_01: Because often I find people don't get the information from the first time.
• 2:05
  SPEAKER_01: I have to repeat myself five times sometimes, in five different ways for my clients to understand and get it.
• 2:12
  SPEAKER_01: And bankers wouldn't do that.
• 2:14
  SPEAKER_00: Yeah, they wouldn't, in my experience.
• 2:16
  SPEAKER_01: Nothing against bankers, but I feel like because they're stretched, they only work nine to five, you know, and a lot of the time my clients have questions in the middle of the night.
• 2:23
  SPEAKER_01: They have questions at eight o'clock at night going, oh my God, I haven't thought this through, or I forgot about this.
• 2:28
  SPEAKER_01: Can you please repeat?
• 2:29
  SPEAKER_01: So if we go back a step for KiwiSaver, as you rightfully mentioned, if people put a deposit on a sales and purchase agreement, let's say$10,000, and they don't have any savings at all, all of their deposit is coming from KiwiSaver.
• 2:44
  SPEAKER_01: Yes.
• 2:45
  SPEAKER_01: Then that 10K has to come from somewhere.
• 2:46
  SPEAKER_01: Yeah.
• 2:47
  SPEAKER_01: And that 10K is probably going to come from their KiwiSaver.
• 2:50
  SPEAKER_01: Yeah.
• 2:50
  SPEAKER_01: And that's what they have to apply for the moment that offer is accepted.
• 2:53
  SPEAKER_01: Yes.
• 2:54
  SPEAKER_01: Kiwi Saver takes 10 working days for withdrawal, not 15, in my experience, sometimes faster.
• 3:00
  SPEAKER_01: But usually it's 10.
• 3:02
  SPEAKER_01: Yeah.
• 3:02
  SPEAKER_01: And it's the lawyers that have to do the undertaking to the KiwiSaver saying, we're going to have this funds, we're going to release it for the deposit.
• 3:10
  SPEAKER_01: But if the purchase doesn't go unconditional, this funds will be returned back to the KiwiSaver provider.
• 3:16
  SPEAKER_01: Now, not all lawyers like doing that undertaking.
• 3:21
  SPEAKER_01: So you have to find a lawyer that will be keen to do that.
• 3:24
  SPEAKER_01: So this only applies if you're going to be using Kiwi Saver as a deposit when you go unconditional.
• 3:31
  SPEAKER_01: Yeah.
• 3:31
  SPEAKER_01: Or when yeah.
• 3:33
  SPEAKER_01: The thing is, if you're not using your KiwiSaver, if you've got that 10K saved up somewhere, or if mom and dad is lending you money for a period of time or whatever, then you don't need to put the KiwiSaver as a as a condition or you don't need to put 10 working days for finance.
• 3:48
  SPEAKER_01: Yeah.
• 3:48
  SPEAKER_01: If you can meet your finance sooner.
• 3:51
  SPEAKER_01: And this is where pre-approval is super important because a lot of my clients that are pre-approved first, like we take a week to get them pre-approved.
• 3:58
  SPEAKER_01: You know, sometimes it's still document collection, the bank turned around, da-da-da.
• 4:02
  SPEAKER_01: But once they're pre-approved, the moment they want to offer on something, I can turn it around within a day.
• 4:08
  SPEAKER_01: So we don't need 10 working days for finance.
• 4:11
  SPEAKER_01: Yes.
• 4:12
  SPEAKER_01: And that will make your offer super attractive.
• 4:14
  SPEAKER_00: Yep.
• 4:15
  SPEAKER_00: So well, I know that from first experience with you guys.
• 4:18
  SPEAKER_00: I've seen it firsthand going through pretty fast in a day.
• 4:22
  SPEAKER_01: Correct.
• 4:22
  SPEAKER_01: Correct.
• 4:22
  SPEAKER_01: So we can do it super, super fast.
• 4:24
  SPEAKER_01: So this is what will make your offer attractive.
• 4:26
  SPEAKER_01: If you need valuation, yes, valuation does take time.
• 4:29
  SPEAKER_01: Standard valuation takes seven to ten working days.
• 4:32
  SPEAKER_01: You can pay for urgent and get it within three days.
• 4:36
  SPEAKER_01: Yeah.
• 4:36
  SPEAKER_01: Again.
• 4:37
  SPEAKER_01: So for due diligence, you could put just five days if you wanted to.
• 4:40
  SPEAKER_01: Builder's report, again, you could, I'm sure you can arrange within three to five days.
• 4:45
  SPEAKER_01: Limb Report is the one that usually takes the longest.
• 4:48
  SPEAKER_01: But if the vendor already has a limb report, you could start with that one.
• 4:52
  SPEAKER_01: And then if you want to get your own, you could still apply for your own.
• 4:55
  SPEAKER_00: So are most banks that happy with the homeowners' limb reports?
• 4:59
  SPEAKER_01: Banks don't read limb reports.
• 5:02
  SPEAKER_01: Banks do not read limb reports.
• 5:04
  SPEAKER_00: It's the lawyers, isn't it, that really wants it.
• 5:06
  SPEAKER_00: Yeah.
• 5:06
  SPEAKER_00: Correct.
• 5:07
  SPEAKER_00: Yeah.
• 5:07
  SPEAKER_00: And they're happy if it's been supplied by the homeowners.
• 5:10
  SPEAKER_01: Usually they are.
• 5:11
  SPEAKER_00: Yeah.
• 5:12
  SPEAKER_01: But usually they'll still encourage you to get your own.
• 5:14
  SPEAKER_01: Is that right?
• 5:15
  SPEAKER_01: They will.
• 5:15
  SPEAKER_01: Yeah.
• 5:16
  SPEAKER_01: Yeah.
• 5:16
  SPEAKER_01: Because again, as I was mentioning in the previous episode, if you want to pull out from the property for one reason or the other, then um.
• 5:24
  SPEAKER_00: Look, it's it's an interesting thing with people like I always find with first home buyers.
• 5:29
  SPEAKER_00: And I'm coming from again, Megan and I buying our first home, and I look back at the sacrifices we made to save a deposit.
• 5:38
  SPEAKER_00: And I think if if you're going into a big responsibility of wanting to buy a house and have a mortgage, I my belief says then you've got to make some sacrifices at the early stages to make that happen and make a plan and get some money there.
• 5:54
  SPEAKER_00: And I think if you can do that and show the banks and everything that you've done that, I think then they can be a lot more accommodating and helping you getting into your property if you've managed to save$10,000,$20,000, you know, as your deposit.
• 6:11
  SPEAKER_00: What do you feel about that?
• 6:12
  SPEAKER_01: I feel the same.
• 6:13
  SPEAKER_01: I feel the same.
• 6:14
  SPEAKER_01: And I think this is where you and I come in, you know, and we educate our clients.
• 6:19
  SPEAKER_01: Yeah.
• 6:19
  SPEAKER_01: Because if they get the wrong information elsewhere, and then that information just travels like wood fire.
• 6:26
  SPEAKER_01: Wait, wood fire?
• 6:27
  SPEAKER_01: Forest fire?
• 6:28
  SPEAKER_00: So like a fire.
• 6:30
  SPEAKER_00: Like a fire.
• 6:31
  SPEAKER_00: A raging fire.
• 6:32
  SPEAKER_01: A raging fire, you know.
• 6:34
  SPEAKER_01: And we and this is why we do this, I guess, is to educate people on what is right and what is the the way the way to go.
• 6:42
  SPEAKER_01: So diaposter on Facebook.
• 6:45
  SPEAKER_01: If if you ever come across this podcast, I hope you uh get the benefit of it of you know, to make your off attractive.
• 6:52
  SPEAKER_01: Yeah.
• 6:52
  SPEAKER_01: Talk to your broker, talk to your advisor, agent, and yeah, get it through.
• 6:57
  SPEAKER_00: That that site that you were on there in the questions, I go in there there there a lot and read read stuff.
• 7:01
  SPEAKER_00: And I was actually reading one just the other day about a first home buyer that missed out on a property by$40,000.
• 7:11
  SPEAKER_00: And it was because the the one that the the offer that the owners took was$40,000 less for a cash offer there.
• 7:20
  SPEAKER_00: They had a couple of conditions in in there, which I would have looked at and thought wasn't wasn't that bad.
• 7:27
  SPEAKER_00: But yeah, the homeowners decided to take the cat cash offer at$40,000 less.
• 7:33
  SPEAKER_00: I'm not sure if I would have done that for$40,000.
• 7:36
  SPEAKER_00: Maybe they would dispensate, but you don't know what the homeowners' situations are, you know, and maybe needed a fast sale.
• 7:43
  SPEAKER_01: Yeah.
• 7:44
  SPEAKER_00: Yeah.
• 7:45
  SPEAKER_01: Awesome, George.
• 7:46
  SPEAKER_01: Thank you so much.
• 7:46
  SPEAKER_01: And I can't wait to see you again.
• 7:48
  SPEAKER_00: Looking forward to it.