Portraying Buyer's Maximum Limit to Real Estate Agent

Viewing 2 posts - 1 through 2 (of 2 total)

kenzel
Member
@kenzel
Join Date: 2007
Post Count: 51
August 31, 2007 - 9:12 pm
G'Day Guys,
I'm about to embark on my first exiciting journey in purchasing my PPOR/IP and would like some advice as to what generally happens when you first speak to a real estate agent?
– Do you provide them with the maximum amount you can spend? (or 5% below the max?)
– Do they only show you houses that are priced lower than your specified max?
– If offered a ride to a potential propery by the agent, should I decline if his name is TOM ( especially from ballarat )? jk
Any advice will be much appreciated
Cheers,
Ken
L.A Aussie
Member
@l.a-aussie
Join Date: 2006
Post Count: 1,488
August 31, 2007 - 11:06 pm
An I.P offer differs from a PPoR offer I reckon.
To me; the numbers are important in an I.P selection. I work out what I'm prepared to pay, make that offer, if it's accepted good; if it's not, I move on – no emotion. I never counter-offer on I.P's.
With a PPoR, you have an emotional attachment, so your offer could go higher if you really want the property. Most people tend to be like this. If you really want the property, and you can afford the asking price, offer that. Having said that, most Vendors are realistic and are prepared for an offer lower than their asking price, so you can safely offer 10% below asking without offending everyone, but be prepared to have to make a higher offer later.
As for telling agents what your spending limit is, I never do, but with I.P's I give them a starting point. You also need to tell them exactly what you are looking for so they don't waste both your time and theirs. The more specific your criteria is, the better job they can do of matching you up with a property that you can afford and will like.
They will always try to show you properties above that point as well; just in case. It's like an up-sell. In fact, I reckon most people end up buying a PPoR more expensive than they were intending to buy.
It's also a good idea to have your finance pre-approved before you start to look as well. This gives you a position of strength when negotiating over someone who is interested in the same property but has to make their offer 'subject to finance'.