19 Aug Spring Property Sales Are Upon Us
It is that time of the year when the Spring marketing campaign begins. The next-door neighbours land is for sale or maybe you are considering spreading your risk and purchasing land in a different area?
Whatever your reason, there needs to be a conversation with your bank and that can be daunting. What information do I need to provide? How much detail do they want? Can our business afford it?
Added to that, the preferred method of sale currently seems to be by Expression of Interest and that adds another level of complexity to the equation. Should I put in an offer subject to finance or get an approval before putting in an offer? It is a lot of work for a banker to put an application up for approval with the very real chance that your offer will not be the winning bid.
As a buyer, you are never certain what other offers have been made and whilst yours may have been the highest offer to begin with, how do you know that an agent isn’t going back to others seeking a second offer in order to increase the sale price?
When you consider the tight timeline for offers to be submitted, most people just find it easiest to speak with their current bank and not use the occasion to offer other lenders the opportunity to quote.
This is where Robinson Sewell Partners can help you. We know what lenders are looking for and prepare the information in a way that makes it easy for a lender to review and ascertain their interest in your proposal very quickly.
We recently worked with a client wanting to purchase land that was being offered by EOI. We put together a credit paper and distributed to three banks. The difference between the highest and lowest quote was 1.24%. Over $3.5 million that’s $43,000 per year. Now that’s worth consideration.