Paying Cash for Property after Agreed Settlement Period after Auction?

Pepperchicken on 19/08/2024 - 09:34
Last edited 19/08/2024 - 17:08 by 1 other user

Hi all, I recently bid at an auction, it passed in and I won due to my shorter settlement period (45days).

I needed a LVR of ~40% then. However few days after I signed the contract, Family has offered to cover the 40%, and I essentially do not need a loan.

Now that I have the cash to settle even faster, would it be worth it to ask the Vendor for a discount? I haven't spoken to my solicitor, so not too sure if there are any implications since the contract is signed with the stipulated settlement date and price.

What do the community think?

Cheers

EDIT : It seems many of you are thinking I am asking for a cash discount lol. It is more the fact the earlier settlement than agreed.

Financial

Comments

  • Gunnar on 19/08/2024 - 09:38
    +31

    Yes and no

    Yes, you can ask

    No, Please don’t get your hopes up, esp. for the discount

  • Duckie2hh on 19/08/2024 - 09:38
    +25

    would it be worth it to ask the Vendor for a discount?

    Contract already signed. I imagine it would be messier to amend the contract now.

  • Seraphin7 on 19/08/2024 - 09:41
    +8

    Highly unlikely anyone is going to entertain a discount at this stage. By all means, you can try, but …

    • ATangk on 19/08/2024 - 18:25
      -2

      Not sure anyone is going to enjoy counting all the cash… It'd cost more than transferring…

      • CommuterPolluter on 19/08/2024 - 19:02
        +1

        Presumably it’s cash in the bank lol.

        • ATangk on 19/08/2024 - 21:32
          +2

          How else will we get that briefcase full of cash moment?

          • Chandler on 20/08/2024 - 12:49
            +4

            @ATangk: OP's next post:

            "I got mugged on my way to the REA with a briefcase of cash. Any chance of getting a refund from the bank?"

          • nobro25 on 20/08/2024 - 20:47

            @ATangk: Should double down and drive in a few trucks of 10¢ coins.

    • RTX9090Ti on 20/08/2024 - 07:23
      +3

      It won't fly, pay with cash or loan, the vendor will get the money in full regardless. no discount!

  • apu on 19/08/2024 - 09:43
    +12

    Very unlikely they would accept a reduced payment unless they were super keen to get the money (i.e. they were paying bridging finance at a very high rate of interest). If you think if of it in the eyes of the vendor, why would I accept less money unless I really needed it?

    Plus, the vendor may have already made plans to move out, settle etc. which may not make it worth the bother. Plus, you already have a signed contract with terms.

  • payless69 on 19/08/2024 - 09:46
    +3

    Yes, pricebeat!

  • boomramada on 19/08/2024 - 09:48
    +2

    Seller probably worried about the chargeback lol

  • KaTst3R on 19/08/2024 - 09:54
    +2

    It is risky for everyone to resigned a contract just to reduce the price slightly. Unlikely scenario but they could "accidentally" include a term in the new contract that is unfavourable to you and your lawyer didnt catch that.

  • RockyRaccoon on 19/08/2024 - 09:57

    Only if you threaten to pay them the 40% in small bills…

    In reality unless someone has a need to hide funds your "cash" or the Banks "cash" is exactly the same.

  • JimB on 19/08/2024 - 10:11
    +9

    If I was a vendor and agreed on a short 45 day settlement and the buyer wanted even shorter, I'd consider it if you gave me additional money.

    There's too much paperwork for everyone.

    Congrats on the new house.

  • rambao9 on 19/08/2024 - 10:12
    +10

    They wont discount because you're paying cash? You've already agreed to pay xx amount. Doesn't work like a restaurant / market unfortunately

  • JIMB0 on 19/08/2024 - 10:16
    +4

    Pointless asking here. You need to ask the vendor about an early settlement. It might not be possible if they have nowhere to go. On the flip side they may have already moved and settling early would be financially advantageous to them. Them sharing some of the savings is at their discretion and also a matter for you to discuss with them.

  • garetz on 19/08/2024 - 10:18
    +3

    Auctions are set in stone, they have no reason to discount the price after the fact. Even if you pay 40% cash, they will get cash from the mortgage anyway, so for them there is really no benefit either way. If i was you i would get an offset account on the loan, put in the cash, and you can use it as you want.

  • Dollar General on 19/08/2024 - 10:19
    +3

    Pay cash pay less is The Good Guys not Australian property

  • EightImmortals on 19/08/2024 - 10:19
    +2

    Why you need discount?
    How much interest is your family charging you?

  • star-ggg on 19/08/2024 - 10:20
    +1

    You can ask for early settlement if you want but nobody cares what tender you use to settle with.

  • dtc on 19/08/2024 - 10:29
    +4

    Its a contract, it can be varied. If you dont ask you wont know. People are getting wrapped up around the 'cash discount' implication but what you are offering is earlier settlement. That might be worth something to the right vendor or it may not.

    Even if it is, the discount would probably be (at most) something like 50/50 on the interest they will save by an early settlement (there is no benefit to them in giving you the entire saving because otherwise they can just wait until the agreed settlement date and it wont cost them any more)

    Assuming their bank and other admin arrangements can be changed. For example, if they have already asked for water meter readings then it might cost to change the date of the reading.

    There is nothing wrong with asking if they will give a discount if you settle in 30 days rather than 45. Sure the amount might be a few $100 but people on ozbargain go nuts on a 50c saving…Perhaps you even make the offer yourself - will they give you a $250 discount if you settle on day 30

    Chances - low. Potential - for sure you can do it

    • derrida derider on 20/08/2024 - 09:37
      +1

      For such a small amount it is not worth changing the contract - the extra solicitor's fees would swallow it quick. Better to offer something less formal like "If we do early settlement you can help with my removalist costs" - ie is not legally changing the agreed settlement price.

    • Pepperchicken on 20/08/2024 - 13:13

      Thanks for your reply, very insightful.
      Yes other posters are harping on the cash discount lol even after I edited the post

      • redfox1200 on 21/08/2024 - 12:16
        +2

        not sure what other possible discount there could be

  • Subere on 19/08/2024 - 10:29
    +5

    From the vendor perspective, cash doesn't make a difference. They get the full amount regardless if it's from a bank/loan or in a briefcase or direct deposit. It's up to the purchaser to source the money whichever way they can. Vendor doesn't care and just wants the money to appear in their account on the settlement date.
    The no loan is to your benefit, vendor couldn't care less.

  • DingoBilly on 19/08/2024 - 10:36
    +4

    You can always ask.

    As a vendor though - you've signed a contract with me for $500,000 or whatever.

    If you pay me in cash, or you pay me via a bank loan I still get $500,000.

    For bringing the settlement date closer by 15-30 days, reducing the price as a vendor means I'm then losing money in order to go and re-sign a few documents and scan them in etc., just to make something a bit quicker. Not really worth it.

  • jv on 19/08/2024 - 10:39
    +3

    would it be worth it to ask the Vendor for a discount?

    why?

    will it decrease their costs?

    • derrida derider on 20/08/2024 - 09:42

      A shorter settlement might decrease their costs, depending on their circumstances (eg paying bridging finance). That is what the OP can now offer.

  • freefall101 on 19/08/2024 - 10:47

    Unless they really pushed you for 15-30 days as part of the negotiation, they're probably happy with 45 days. Had they already moved into a new home or was it still pending?

    Realistically, I wouldn't bother. Even if they have a million dollar bridging loan at 10% it's $4k to knock 15 days off it. Considering the agent won't want to do it, it'll mess with whatever timelines they've already setup, it's probably not worth it for anyone to do. I'd just stick the extra cash in whatever interest earning accounts you can for the next 45 days.

  • MarsTitan on 19/08/2024 - 10:50
    +5

    If the property is for investment than I would suggest you still take out the loan and put the "gift" money in the offset account. Even if it is a PPOR, I will advise to do the same. In both cases you do not pay any interest and some banks will give you cashback (e.g. ANZ) for taking out a loan. This way you will get some money and can actually keep churning to different lenders to get more cashbacks in future.

  • altomic on 19/08/2024 - 10:57

    but….cash is king!!!

  • capslock on 19/08/2024 - 11:05

    You can do a separate deal with the vendor outside of the contract. Ask them to pay you a small amount in exchange for an earlier settlement. Not sure why they would say yes unless bikies were chasing them for money and they need the money urgently.

  • overthinking on 19/08/2024 - 11:13

    you're way better off going to propertychat.com.au for this one….

    or just go straight to your solicitor!

  • elgrande on 19/08/2024 - 11:20
    +2

    Lol.

  • DashCam AKA Rolts on 19/08/2024 - 11:26
    +2

    Why would the vendor want cash? It is of no benefit to them in a property settlement. This isn't a Marketplace deal for a 2nd hand iPhone, or a Gumtree deal for a 2002 Corolla.

    • garage sale on 20/08/2024 - 19:25

      not like cash or credit card or paypal surcharge … they are getting their amount, earlier settlement means their solicitor and yours altering contracts, title checks, bank to transfer title if a mortgage on settlement, what’s in it for the legal for the disruption to a process that is in motion ?

    • JMosk on 19/08/2024 - 11:46
      +1

      The only way to know is to ask. Noone here will be able to tell you if the vendors will say yes or no.

    • RTX9090Ti on 20/08/2024 - 07:24
      +1

      doesn't matter, you just want to get discount, everything else is meaningless to the vendor. so its a NO!

  • Subere on 19/08/2024 - 12:11
    +3

    As a vendor, I'd wait the 2 weeks for the agreed price and not entertain a discount at all. Why would I want to lose money?

    • dtc on 19/08/2024 - 23:12

      Why would you lose money? Whats 2 weeks of interest on your mortgage? if you reduce the price by 50% of that, you are saving money

      • RTX9090Ti on 20/08/2024 - 07:25

        its not about saving money, its about the integrity of the buyer. we want the full money as agreed, no change of deal!

  • tsunamisurfer on 19/08/2024 - 12:33
    +2

    Put yourself in the vendor's place.

    Would you want to give up thousands of dollars just to fast forward a couple of weeks?

    Worse, you're probably thinking ten of thousands.

    • boomramada on 19/08/2024 - 13:16

      for $1m loan as an example, more like $2k discount for 14 days. OP can keep the money in the bank for 14 days and save $2k lol

      Family has offered to cover the 40%

      I assume, parents, which mean OP has to stuck with the parents for another 14 days lol

  • eek on 19/08/2024 - 13:19

    You'll have to provide the vendor with some kind of upside. Hard to say really. Also given the time frame, pushing settlement forward isn't that big of an incentive (personally). I've pushed settlement of some of my residential properties out to 3 months because I was traveling around Europe on vacation for 2 months. Really depends on specific circumstances of the vendor. No harm in asking…but I couldn't be bothered messing around with an executed contract.

  • Trying2SaveABuck on 19/08/2024 - 13:42

    You can ask and they will 99.9999999% say No

    I dare say the agent wouldnt even pass that question to the Vendor a good agent would just so No the vendor is happy with the current deal

    There is no reason to provide you with a discount, paying cash or you getting a loan doesnt benefit the vendor, the fact you think it does is a bit strange - good on you for having family covering you i wish someone would do the same for me

  • CurlCurl on 19/08/2024 - 14:11
    +2

    Seriously! Some people.

  • Lunarboogie on 19/08/2024 - 14:14
    +4

    This community member thinks you're a fool for even dreaming this scenario up.

    • Makaveli99 on 19/08/2024 - 21:15
      +1

      100%

    • rumblytangara on 21/08/2024 - 14:18

      Throwing in a couple of jousting poles will seal the deal though.

  • Downvoter on 19/08/2024 - 14:22
    -1

    Cmon be real it’s not like it’s the good guys or somewhere pay less pay cash Fark me

    • gromit on 20/08/2024 - 10:59

      it isn't pay less for cash, it is pay less for shorter settlement. financially speaking the seller would be better off with that arrangement, assuming it is easily possible and they don't have delays like their own bank settlement. regardless the advantage is going to be $10k or less to the seller unless a huge property price so I doubt they would entertain the idea unless desperate for the money.

      • Pepperchicken on 20/08/2024 - 13:15

        Thank you, Exactly. I am offering shorter settlement not a cash discount. Just wanted to see if people have any insights/experiences.
        Comprehension is much needed

        • tekisei on 20/08/2024 - 15:50

          On a median Melbourne house of $1,030,000 (April 2024), if the settlement is shortened by 14 days the vendor can earn at least $1.8k (if no mortgage) just by putting the money into a high yield savings account (e.g. Macquarie Bank, 4.75%), more if the vendor has a mortgage (since the effective interest rate is higher), and even more if the vendor is holding a bridging loan.

          It is sort of a pointless amount of money to ask for a discount though, you might have excess conveyancer fees and so on for the adjustment which would eat up a big proportion of that amount.

          You could keep it in your own high yield savings and "earn" the discount from the bank instead?

        • CurlCurl on 20/08/2024 - 15:58
          -1

          Thanks for your reply, very insightful. Yes other posters are harping on the cash discount lol even after I edited the post

          You posted the above yesterday.

          And the below today.

          Thank you, Exactly. I am offering shorter settlement not a cash discount. Just wanted to see if people have any insights/experiences.
          Comprehension is much needed

          Comprehension is much needed

          It certainly is, but not with posters that have responded.

  • TheMindsetTraveller on 19/08/2024 - 15:11

    Unless the vendor needs funds quick or has commitments elsewhere, then I doubt a vendor would want you to entertain a quicker settlement for a discount.

    If you are keen, you can tell the vendor you can settle earlier which I think they would entertain.

  • ihbh on 19/08/2024 - 16:06

    Now that I have the cash to settle even faster, would it be worth it to ask the Vendor for a discount?

    Worth a try, but the vendor might have to pack up and empty the place, and need all of the 45 days.

    Whatever the case, tell your family you need the cash now. Put it in the safest, highest deposit you can for however many days. Even if the vendor says yes, compare the discount to the interest you can earn and go from there.

    • Ponsonby on 19/08/2024 - 17:40
      +1

      OP is very fortunate to have family stump up 40%. If I was the family, I would supply my generous gift at settlement and no sooner. It is for the house, not anything else.

      • ihbh on 19/08/2024 - 17:42

        1. He's just earning interest to save some down the track.

        2. If you were him, you want to make sure you've got it in your hands well before the settlement date, in case he needs to apply for a loan.

        • braddsey on 20/08/2024 - 22:51
          +1

          Regarding point 2: no chance. I lent money to a family member recently at settlement of a property. Transferred directly to the settlement account only. Why risk multiple transfers of large sums of money?

          • ihbh on 21/08/2024 - 07:17

            @braddsey: Sensible point. Still, was the family member sh*tting it until it hit the settlement account?

            • braddsey on 21/08/2024 - 18:45

              @ihbh: There's plenty of sh*tting it in a property settlement and transfers of large sums of money. This was just one more element!

  • Brianqpr on 19/08/2024 - 17:45

    Contract price would be binding I would think, therefore no discount. The discount is not having to pay loan interest, be thankful for that.

  • MrThing on 19/08/2024 - 19:01
    +2

    lol a discount

    I wouldn't even give you the time of day to respond, just be radio silent until settlement day

  • JimmyF on 19/08/2024 - 19:02
    -1

    Now that I have the cash to settle even faster, would it be worth it to ask the Vendor for a discount?

    You can ask, but there is no 'cash' discount. This isn't the local Asian eatery, the vendor isn't paying 'credit card' fees.

  • wordplay on 19/08/2024 - 19:24
    -1

    tell the seller you will find another joint if they don't lower the price for cash. tradies are knocking off 15% for cashies without a receipt or warranty. I would expect at least a 10% discount on a house for cash, get rid of the middle men agents and conveyors and you have saved them and you a packet. may need to bring a couple of mates to make sure you keep an eye on them counting the money.

    country is stuffed if we don't use cash for these everyday type transactions.

  • Theoprine on 19/08/2024 - 20:25

    I think you are looking for OzLaundering?

  • fredk1000 on 19/08/2024 - 22:38
    +3

    Pay them with $20 notes.

    45 days will pass very quick, will give time for you to sort out your legal matters.
    If they are still living there, they need to move and clean up.

  • gromit on 19/08/2024 - 23:22

    At most you will get a few weeks off, contracts, bank discharge (assuming they have a loan) all takes time. I had a cash buyer for my house and it was still 4 weeks. So I would not expect them to consider a discount unless desperate for the money a couple of weeks early. Even high priced bridging at around 10% on a $1m it is only saving them $4k in interest payments

  • 2esc on 20/08/2024 - 08:13
    +1

    Contract signed whats the benefit to the seller? None.

  • justgooddeals on 20/08/2024 - 10:52

    Can’t hurt ask.

    Chances of getting discount next to 0%

  • Hangryuman on 20/08/2024 - 12:37
    +3

    after you agreed the price and signed the contract, ask for a discount ?

    sure - it's worth a laugh !

    reminds me of Beijing in 1991 - the newly opening up society learning how to do business - a lady obvs from a rural area, opened up her cloth and offered me a very poor rough copy of a Swiss Army Knife - I was more bemused - and several local men gathered with interest to watch the foreigner's interaction

    I said 'how much?' (Duōshǎo?) - she said like 50 cents Australian - I was considering it not as anything useful, more as an artifact of a rough Chinese product - the men watching said like 'too cheap - you should increase the price!' - the lady, flustered in her inexperience, went like 'oh! … oh! … uh - two dollars!'

    I laughed, saying 'you can't increase the price after you've already told me the first price!' - and everyone laughed along - we learn by our mistakes …

    • Wampus on 20/08/2024 - 13:34

      Actually I need closure to this anecdote - did you buy it?

      • Hangryuman on 21/08/2024 - 12:23
        +3

        I forget - if I did it's probably in the dustbin of history by now

        P.S. my genuine beautiful Victorinox Swiss Army knife was last seen in the hands of a security check Japanese woman at Sapporo airport departures as it scanned on the luggage x-ray, she reached into my carry-on backpack and held up it with a sad expression indicating 'we'll be keeping this …'

        after that heartbreak I try to forget about beautiful Swiss army knives - that rough copy in Beijing was definitely not beautiful …

  • H3R34TH4C0MM3NTS on 20/08/2024 - 12:42
    -2

    Do you have no shame, obviously not. Just because you can doesn't mean you should. sometimes there is no price on your integrity, obviously for some people there is a price and theres plenty of examples you can highlight. If a buyer ever did that to me I would cancel the sale and give it to the NIL out of spite even if it meant taking a financial hit

  • Poor Ass on 20/08/2024 - 13:47

    EDIT : It seems many of you are thinking I am asking for a cash discount lol. It is more the fact the earlier settlement than agreed.

    I've never heard of anyone use the word discount to shorten time

    • gromit on 20/08/2024 - 16:18
      +2

      Settlement time is a common bargaining chip and does have considerable value and in some cases it would warrant a discount or in the case of a very long settlement requested by buyer a premium.

      • Poor Ass on 20/08/2024 - 16:46

        but nobody would say give me a discount and assume it meant time

        they would say, could settlement occur sooner

        • gromit on 20/08/2024 - 16:55
          +1

          What he means is a discount in price for settling sooner, not a discount in time.

          • Poor Ass on 20/08/2024 - 16:57

            @gromit:

            EDIT : It seems many of you are thinking I am asking for a cash discount lol. It is more the fact the earlier settlement than agreed.

            This looks like they are not asking for a price discount and asking for a sooner settlement

            • gromit on 20/08/2024 - 17:00

              @Poor Ass: It is both. He wants an early settlement and is windering if he can get a discount for this. If it was prior to contract signing he might have got a discount, after it i doubt it would happen as 45 days can only realistcally be reduced by a few weeks anyway.

              • Poor Ass on 20/08/2024 - 17:00

                @gromit: why does he write so shit

                • gromit on 20/08/2024 - 17:05
                  +1

                  @Poor Ass: Cant help you with that one lol. I think it is just a lot of assumed knowledge about what he is asking. "Not asking for a cash discount" simply means not asking for a discount for paying cash, he is asking for a discount in price for paying early. Many seem to have jumped to wrong conclusion that the discount request was for him paying in cash which of course the seller would not care about.

                  • Poor Ass on 20/08/2024 - 17:08

                    @gromit: Then it's a stupid question nobody would give him shit

                    • gromit on 20/08/2024 - 17:19
                      +1

                      @Poor Ass: Not at all, each week early on payment has a value. Eg on a $1m property each week early is worth at least $1000 or even $2000 or more if bridging is involved. If you could get 3 or 4 weeks early it is a good benefit to seller, but probably not worth the hassle if contract aleeady signed.

      • Eeples on 21/08/2024 - 08:08

        I thought typically a shorter settlement time typically was a premium that the vendor offered.

        • gromit on 21/08/2024 - 12:14
          +1

          settlement time is basically the time when you pay the vendor. Shorter settlements are "generally" better for the vendor assuming they don't have other limiting factors like their own bank settlement time or needing to stay in the house longer. The sooner you get the money for your sold property the quicker you can pay off any high interest debts or simply start earning interest on the money in a HISA.

          Most buyers are limited with settlement time by the bank as approvals, valuations etc generally take 4 to 6 weeks. 45 days is already a fairly quick settlement time. When selling my property I calculated out that each week of settlement cost me around $1200, So when dealing with offers longer settlements I had to cc consider the additional cost and would require a higher offer just for them to equal a shorter settlement

    • H3R34TH4C0MM3NTS on 20/08/2024 - 21:09
      -1

      Yeah the OP doesn't understand the meaning of the word "discount which google says is

      "a deduction from the usual cost of something."

      in this context most people with 2 brain cells would understand this as discount on the agreed and contractual sale price of the property.
      to do this the vendor would need to agree to null and void the previous contract and agree to terms to a contract with a Lower/discounted sale price.

      Now if the OP said , to request an earlier settlement date than what was agreed in the contract then thats a different ball game. depending on the situation and earlier settlement date to the date that was initially agreed may be of an advantage or disadvantage to both parties. However in the situation that the buyer wishes to make a change the settlement date to an earlier date, a proposal to the vendor through thier agent is unlikely to offend anyone. At best it will be accepted at worst it will be rejected and you follow through with the contract of sale.

      • Pepperchicken on 20/08/2024 - 21:14

        not you shaming me then reading the post twice again to understand the context, then putting the blame on me again lmao.

  • May4th on 20/08/2024 - 15:26

    the settlement period is not just for loan approval, I suggest you involve your conveyancer/solicitor in your conversations.

    did you sign a 66w? if you did there is zero chance they will offer a discount as you stand to lose 10% if you rescind contract. if you didn't and still within cooling off then it'd just 0.25% on the line, and you are essentially renegotiating the price.

    also even if I had the cash I'd still apply for a loan at 40% LVR and keep the liquid saving in an offset

    as a vendor there would be a very narrow range of scenarios where bringing forward settlement by one or two weeks is worth a meaningful haircut on price

    • Pepperchicken on 20/08/2024 - 16:11

      Yea I thought through taking a loan and putting the cash in an offset.
      However, hypothetically if you have $80-100k left after purchase, would you still take the loan?

      With the loan, you would still need to pay the Principal even if the interest is offset.
      Also the plus of debt free PPOR which opens up investment properties via loan.

      Keen to hear your thoughts

      • Poor Ass on 20/08/2024 - 16:59
        -2

        do it

        I have multiple mortgages on my cardboard homes on the street and doing fine

      • May4th on 20/08/2024 - 19:02

        depends on what you want to do with the money, it's the cheapest loan you will have and opens the option of debt recycling for ETF investment etc. I suppose if you have clear plans for an investment property at maximum LVR and your borrowing capacity is constrained then don't take out a loan on PPOR

  • MrMoo on 20/08/2024 - 15:48
    +1

    Well let's reverse the situation. If they offered you a 90 day settlement would you pay more money?

  • JDMcarfan on 20/08/2024 - 17:31

    Buddy you signed a contract and both parties have agreed to the terms. There's no discount "Cash Discount (wtf this isnt a Asian Takeaway)" or a discount for early settlement.
    You're simply going to offend asking for a discount, but you are more than welcome to offer an early settlement (any solicitor can negotiate with their and make it work).

    In this request you could mention that you have all the funds available and you are able to complete the contract effective immediately (subject to solicitor sign off).
    The only case where you could ask/mention for a discount, is if had a long settlement (90+ days) and they have come to you asking for an early settlement. This gives you leverage knowing the seller need the cash or could do with it sooner rather than later (i.e. they have bought another home and are selling this one off) and where money in the bank sooner can reduce their interest burden/fund the purchase of the new house.
    If they haven't asked/mentioned (you could ask your solicitor if they have accessed the 10% deposit - indicates they used it to fund a new house) then they have no need for your money outside of a nominal interest saving.

    In saying that how are you going to quantify the discount? Ideally the discount should just be the interest payments they save. If they are upgrading, you could use the purchase price, but if they're downsizing/investor you can't as no one will have a mortgage equal to the purchase price.

    Lets assume they are upgrading (i.e. Interest on full purchase price is a saving) . 6% p.a*(36/365 - assuming a few more days to finalise the settlement) = 0.6%. If they're an investor or downgrading (lets assume LVR 50%) then half that. If it takes another few weeks to settle then half each of these values. I think you can see where I'm coming from.

    Are you seriously going to go an ask for a discount of ~0.5%?

    • JDMcarfan on 20/08/2024 - 17:41

      instead assuming its a $1m house, you can put the $1m in a bank account whilst you wait (BoQ - 4.85%).
      You can make effectively $5k just leaving it sitting in the bank pre-settlement. Use that for some furnishings.

  • R4 on 20/08/2024 - 17:55

    Think about it - if you were the vendor, would you accept a lower amount that the agreed price (that you signed off on)? They're going to get their money whether it's a loan or cash.

    Ask by all means but I doubt that it will work.

    Good luck.

  • idonotknowwhy on 20/08/2024 - 20:15

    That's piss me off if someone offered me that lol.

    On ebay, people offer cash, so you can do a cheeky swap at maccas and then they can cancel the ebay listing, saving the 15% ebay/paypal fees.

    Tradied like cash because they don't have to declare it and pay tax on it.

    Doesn't work that way for a property transaction though.

  • living4music on 20/08/2024 - 21:55

    Happened to me before, believe it or not. After the contract was signed, i was short on the loan and I asked the seller to give me some discount. We finally agreed that the seller will give me $5K cash back after I settled the full amount.

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