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June 2010

Making an offer prior to auction

by Chris on June 29, 2010
Making an offer prior to auction

Property Auction I’ve had an experience lately of making an offer on a house prior to auction. In Melbourne, where vendors seem to just love selling their houses on auctions, people like me, who favour private sales, are clearly a minority :) .

I used to think that when a certain house goes on auction there was no way around it, except for turning up on the auction day and bidding with the rest of the pack. So if you are thinking the same, I’ve got news for you – there is a way out, and it’s called making an offer prior to auction.

Making an offer prior to auction is a science on its own right. Mainly because you need to work out what price and settlement period would tempt the vendor into giving the auction up, without being a mind reader. You need to time your offer so that it gets accepted, before another buyer comes along and makes a better offer. The reason for this is that once one offer has been made, it will be disclosed by the agents to other potential buyers to try and get them to go higher, transforming the whole process into just another auction. This would be the opposite of what you’ve meant to achieve.

As always, agents are in advantage in any case – if the house sells prior to auction, the buyer has made their job simpler, and if not – they can adjust the vendor bid accordingly so that it’s equal or higher than highest received offer. In fact, at open houses they will encourage people to make offers, to ‘feel the market’ and to have leads to come back to, should the house pass in.

A trick that you can expect them to pull on you is to demand an unconditional offer. Just to be clear, there is no law that says “all offers on houses advertised for auctions must be unconditional”. In many cases agents will have you believe that going unconditional is the only way to get your offer passed on to the vendor – which is not true. They must pass any and every offer, conditional or not, unless the vendor has instructed them to not take anything less than X (and your offer is below), or if the vendor is not open to selling prior to auction at all.

It is true that as it gets closer to the auction, when a vendor compares two offers where one is conditional and the other one is not, the unconditional might win, even if they offer a bit less – just because it’s less risky. But if you are submitting an offer well before the advertised auction (4 weeks for example) and it is conditional on building and pest inspections done within a short period of time (a week), the risk for vendor is not all that big because there’s plenty of time left.

In my opinion, because timing is rather important, it makes sense to offer your best price and terms when making the first or the second offer. If there is a lot of interest, a buyer that is mucking around with the price and offering small increments risks losing to another person who offers a far better price at one go. Also, make it clear to the agent that you won’t be bidding at the auction and set an expiry date on your offer to put the pressure on the vendor. Make your offer expire before they have another open house, to reduce chances that they encourage another buyer to compete against you.

That’s it from me, and now it’s your turn – what are your best tips for making an offer prior to auction?

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Tips for dealing with difficult neighbours :: Cat problems

by Chris on June 24, 2010
Tips for dealing with difficult neighbours :: Cat problems

Neighbour Cat Before we dive in, I just want you to know this much: yes, I am a dog lover – but no, I am not a cat hater :) Cats are nice, furry and cute – well most of them are – yet sometimes they can create a real problem between neighbours.

With cats, as I said, the main problem for a cat-lover’s neighbour is when the delightful creature decides to turn their yard into a giant kitty litter box. Although the same laws that apply to dogs, apply to cats as well – meaning they must be kept on their owner’s property at all times – cats tend to pay a rather frequent visits to the neighbouring yards once let outside.

And if, havens forbid, they decide to do their business under your window – the smell can be just unbearable. What makes it worse is that once a spot was marked, it literally becomes a public toilet.

Of course talking to the neighbour should be your first choice. After all they don’t follow the cat around and may not know about the kitty litter issue. But sometimes that doesn’t solve the problem or you simply don’t know what neighbour the cat belongs to, in which case you can try something else.

A grandma recipe to get rid of that public toilet spot is mixing some tea-tree oil or eucalyptus oil with alcohol and water and spraying the spot generously. Cats hate that scent and will steer clear of that area.

Another good idea is removing the things cats are attracted to – such as mulch, which you can replace with gravel, and planting prickly plants, which cats dislike. You can even try plastic thorns, the same kind people use to keep birds off their fences.

As a last resort, if the problem persists, consider installing a cat trap and handing the cat over to the RSPCA. They sure will find the owner by reading cat’s microchip number and one hefty fine will be on its way – which can be more convincing than any of your negotiations. After all, sad as it sounds, some people value their money more than their neighbour’s peace of mind.

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Tips for dealing with difficult neighbours :: Dog problems

by Chris on June 21, 2010
Tips for dealing with difficult neighbours :: Dog problems

Neighbour Dog I think I’ve mentioned before about me being a dog person. Funny enough, in my social circle I am outnumbered by cat lovers – most of my friends like cats. No idea how am I getting along with these people :) . But seriously, cats and dogs (by far the most popular pets) are very different, and naturally the problems you can expect from them are different, too. Dogs bark and cats poop. Today I am dealing with annoying neighbor dogs, and my next article will be about cats.

“That barking dog drives me nuts” you say for the 1001st time and desperately search your mind for ways to silence the horrendous creature.

Talking to the neighbours is something you could try first. They may not be aware you are annoyed to the extent of considering poison. Don’t make it all about you – speak in general as if it was a common concern: “It is very difficult for anyone to get any sleep when the barking is going on till 1am.”

You could ask about the reason why the dog barks. Note the hours when barking is at it’s peak (keep a diary) and ask the neighbour whether anything could be triggering it at that particular time. Perhaps if they allowed the dog in the house, barking would stop or at least become quieter.

When negotiation fails or the neighbour simply ignores your requests, the other option is, of course, complaining to the authorities. In that case you will need the diary with dates and times of barking as well, to prove your claim. But, as you know, anything that involves the local council is by nature a very lengthy process, and one needs to get some sleep every night.

If only there was an “off” switch for the barking, you think. And actually…. there is. Ever heard of an ultrasonic device called “Bark Off“? It’s a tiny battery powered box that has a wall mount (so can be mounted on the fence), and which is also bark activated. Once your neighbour’s dog begins barking it sets off the ultrasonic signals that human ears do not hear – but that capture the dog’s attention and interrupt otherwise uncontrollable and annoying barking. In terms of law this is completely legal because you can install anything you want on your property, plus it doesn’t harm the dog.

Ok, barking is out of the way now, but what do you do when a neighbour dog comes to your property often for just a visit or to leave a “deposit” on your lawn? Even though the law is on your side and the owner IS required to keep the dog on a leash or at their property at all times, but how do you enforce that law?

If asking the neighbor nicely doesn’t work, there’s no way for you to restrict dog’s access to your yard and you prefer to leave the cops out of it, it’s time to get creative and … hose the dog. Just keep the water restrictions in mind :)

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Tips for dealing with difficult neighbours :: Noise issues

by Chris on June 15, 2010
Tips for dealing with difficult neighbours :: Noise issues

Earplugs - protection from noise A noisy party next door keeping you awake at 1am? We’ve all been there at one stage or another.

So what do you do?

A) Race over there in your bathrobe and slippers and tell them to shut up.

B) Call the police.

C) Keep turning over in your bed, wishing them a nasty hangover tomorrow.

There are actually more options – provided you didn’t do anything hasty that night.

For one, you could go over and find out, whether that party was a one-time event, such as a house warming, or someone’s birthday. If it was, perhaps there is no need to worry about future disturbances of the same kind, especially if you let them know how you feel about that level of noisiness.

It pays to assume that people are inherently good. Yes, there are neighbours that take pleasure in destroying other people’s peace, and there are neighbours that don’t care much about anyone else, but most neighbours aren’t evil. Your neighbour could simply not think that his party or his stereo were THAT noisy. Once you raise the issue and they realize this behaviour disturbs you – it could stop once and for all.

But how do you complain to someone about something that he does that bothers you? Honestly and tactfully. It can make a world of difference if you say how you feel. Do you hate complaining? Well, say it: “I hate to complain, but that party you had till 2 am last night was really loud and neither of us could sleep. I’ve been so tired the whole day after.”

If the same neighbour insists on being annoyingly noisy (I would say 2 – 3 times a month qualify, after your initial warning), then you could use a different approach. Write down all the disturbances, the dates and the times, so that you would have all that information handy when you confront them or eventually talk to the authorities about it.

When you can’t talk to your neighbour in person, the next best thing is to leave them a note. Be it because they work late, or because you can’t bear the thought of a possible confrontation, it doesn’t matter – writing a note is also a very good step. If this is your first note – politely explain who you are, what you are writing about and what you would like them to do. If this is your second or third note to them, because the noise just won’t stop, you could include your log of their parties and the law (with the relevant pages photocopied and paragraphs highlighted).

Are you the only one who’s not happy about the noise? Talk to the other neighbours to see whether you have their support. If a group of people opposes to such behaviour, the guilty neighbour could cave in more easily.

Find out whether your neighbour is a tenant. If that is the case and he/she won’t cooperate, you could complain to the landlord about the noise. Any written evidence – such as the little diary we discussed – will help support your claim.

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Tips for dealing with difficult neighbours :: Tree dispute

by Chris on June 10, 2010
Tips for dealing with difficult neighbours :: Tree dispute

Tree face Trees are a very common reason for trouble between neighbours. It’s so easy to lose it when your neighbour’s tree roots are ruining your driveway and he won’t do a thing about it. It’s infuriating that he won’t cut down that old decaying tree, even though it’s an accident waiting to happen. But getting into a fight right away is never a good idea – doing your homework and negotiating will get you better results.

The first thing to do is to get prepared. There are local laws for pretty much any annoyance your neighbour’s tree is causing you, so it pays to get familiar with them – including making a copy of the relevant page and highlighting the paragraph that addresses your problem. Ring your local council or visit their website and ask or search for the relevant information.

The majority of problems with trees happen when your neighbour’s tree is shedding leaves, branches or fruit on your side of the fence, which means that you have more mess to clean, or when the roots of that tree are ruining your plumbing or driveway.

Some general rules about trees are that you can cut / remove whatever is on your side of the fence – provided that you don’t cause the whole tree to collapse on your neighbour’s property. But if you care about good neighbourly manners, the right thing is to discuss it with them first. He or she may not be aware of the problem – after all, people don’t look over their neighbour’s fence very often.

Now, discussing the problem with your neighbour… sometimes is easier said than done. In my case it was quite awkward – I didn’t even know my neighbour’s name, we’ve never spoke about anything (not even the weather!). Don’t let this happen to you – just say ‘Hello’ occasionally when you see them. Well before you have had any problems :)

With or without discussion, whenever you’ve removed parts of the tree that were on your property, you need to (don’t laugh!) return them to their rightful owner, your neighbour :) . Which is why the discussion part becomes even more important. Imagine the look on your neighbour’s face when you dump a pile of roots and branches on his driveway: “Here you go, buddy!”

And one last thing – damage to property is a big issue, but danger to health is a much more serious one. Sometimes people have poisonous trees growing near the fence with branches overhang your property or poisonous plants (you can see the full list of poisonous plants in Victoria here)

If you are worried about the safety of your children, know this: your neighbour is required by law to cut the overhanging branches of such trees / plants, and raising this issue with him could be the simplest solution to the problem.

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‘Tips for dealing with difficult neighbours’ series

by Chris on June 7, 2010
'Tips for dealing with difficult neighbours' series

Love thy neighbour It’s easy to say “Love thy neighbour” – but what can you do when they make it bloody impossible?

Every once in a while I get emails from people who have bought a house with a neighbour from hell and are now stuck, annoyed and frustrated with their ridiculous behaviour.

Can I be completely honest with you here? I have a couple of neighbours that I am not too crazy about myself. But until recently it never occurred to me I could actually DO SOMETHING about it. I just assumed that not much can be done about that barking dog, or the screaming kids or the ear-splitting rock concerts my neighbour is a huge fan of. Oh, and did I mention that he decided to became a famous guitarist lately? Which seems to come with mandatory deafening midnight practice sessions.

Since I’ve done quite a bit of research on this topic it’s only fair that I document it somewhere – and what would be better than my blog “Home I Own”? Any house comes with neighbours and anyone who is living anywhere at all could be sharing the same set of problems.

Without going into legal rights issues (which I can’t, because I am not a lawyer), this series will give you some ideas for potential solutions – or at least things to try to solve a dispute, before getting an actual lawyer and taking the ‘bastards’ to the court. Lawyers are expensive, court cases take years to settle and nobody needs the constant stress, so it makes sense to try and reach an agreement instead.

That’s all you get today folks – stay tuned for the articles on how to handle disputes with your neighbours over trees, fences, noise, cats and dogs and different forms of nuisance behaviour.

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Keeping a dog at home: 5 really bad mistakes

by Chris on June 1, 2010
Keeping a dog at home: 5 really bad mistakes

Dog in the back yard Did you know I was a dog person? Well, now you do :) No, there’s nothing wrong with cats, they are alright, I just prefer dogs.

But life is never simple. It turns out being a dog lover is not enough – in fact, it can get you in trouble, if you’re not familiar with the laws enforced by the local council.

This story began when my friend lost her dog. The silly thing escaped from their back yard and went to a park nearby, where it was picked up by the city council workers and transferred to a dog pound, before the owners realized the dog wasn’t in the yard. My friend was heartbroken, because a loved family pet they spent a small fortune on to import into Australia suddenly went missing. After hours of desperate search we eventually gave up, it was too dark and my friend cried so hard she couldn’t see any more.

In the morning after ringing numerous pets’ registry databases my friend traced the dog to the pound where it was kept. She was thrilled and rushed there to claim the silly-but-much-loved doggy back. A good thing she had some cash on her, as this ride to the pound was quite expensive – they charged her a release fee and on top of that she was told to expect fines from the city council.

This is how I got interested in the local dog laws, and it is pretty amazing how many of them one can break without even knowing :)

Apart from the most straight forward laws that require registration of each dog and limit the number of dogs to 2 per property, here are some bad and expensive mistakes you wouldn’t want to make:

Mistake # 1 … is to think that your dog’s barking is your neighbor’s problem. Not so! If they complain about the noise repeatedly city council may issue you fines or even worse – you could be prosecuted by the Magistrates Court.

Mistake # 2 … is to think that your property doesn’t need to have a way of confining the dog. Even if the dog has no desire whatsoever to leave your back yard, you could be fined just because he could, if he wanted to :)

Mistake #3 … is to think that if, God forbid, your dog is hit by a car, the driver is responsible for the dog’s medical expenses. In fact it’s the other way around – you are responsible for the damage to the car, and the driver can sue you for his/her injury as well.

Mistake #4 … is to think that you can let the dog walk outside your property after dark. The fines for dogs being off owner’s property after dark are even heavier than during the day.

Mistake #5 … is to walk your dog without a pooper-scooper or something else to pick up faeces. You could be fined on the spot – even if your dog does nothing that requires cleaning after!

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