Negotiation Q: vendor didn’t come back with a counter offer?

Sounds like it might just be a difficult vendor. If it's been on the market for that long I'm sure it's probably advertised at a unrealistic price and the vendor wants to get that price and has his heart on getting that price or close to it. Did you try maybe offering a shorter/longer settlement if that suits the vendor better? I personally wouldn't put another offer in on it, you said you've done your research and got a valuation so your offer is probably accurate on what it is worth. Just tell the agent that if the vendor changes his mind, you have my number but you are going to have to pass.

Hi Jay,

You did write

"has responded with 'not willing to proceed unless the offer is in or closer to the advertised range"

i think that is what seller's counter offer is…..

just do your numbers, look at other comparable properties in a market and present your best offer.

if they don't accept it, move on to other comparable property. I am sure that is not the last property on the market.

Also, how did you find out about vendor's divorce?

Just out of curiosity, can you give more details about property??

There are a few reasons why the owner isn't budging (some as stated aboved):

1. Vendor not motivated
2. Vendor or Ex are being difficult 
3. Price has not been adjusted in line with market correction
4. Agent has overquoted and being held to account
5. Bank is owed more than your offer and owners are not able to accept less

Stick to your guns – if necessary tell the agent what the low-medium range of the valuation was (and use this as the max that the bank will approve), you have got the evidence – use it (you have paid for it so you have nothing to lose if they still want something above your walk away price).

Hi Jay

You really need to dig deeper around the reasons for the sale. Be upfront with the Agent and say that the only way you can come to the party is if they can find out "What the owners are trying to achieve out of the sale of the property?"  You need to understand their motivation behind the sale.

There are only 2 reasons why a person ever sells a house – to get their Cash bit out or get away from their Debt bit. Find out which is it????

The fact that they've had the property on the market at a higher price and it's now come down is Real Estate conditioning – the Agent indicated to the owners there was no interest at the original price and therefore suggested the price be reduced, which they obviously agreed to. Normally this process would continue until the owners relent and just sell. The Agents don't care as it makes little difference to the percentage commission he/she makes over a few thousand dollars as long as they just get the place off their books.

In this instance however, the fact that owner has had the property on the market for 18 months and has asked you to "come up to the advertised price in order to proceed" suggests to me that he needs a certain amount of $$$ to move forward and cannot lower the price any further. I would assume this is most probably due to his debt load, which may or may not relate to the divorce situation. You can get as many valuations as you like, but if the owner needs a certain amount of money to clear his debts…….he's not going to sell to you at your offer! 

He's not necessarily unmotivated, nor is he trying to be difficult. If you can speak with the owner direct, ask him: "What will he do if you don't buy the house?" – this will answer your question about his motivation. If he says he's just going to ride out the market till the prices recover – yep unmotivated. If he says he just needs to get rid of the property asap- definately motivated.

Depends on how much you want this property and what your exit strategy is for it, but if you want more assistance with buying it on "Terms"……read Rick Otton's book "How to buy a House for a $1".

Cheers, Tamara

Jay – try and have the conversation with the Vendor. Work out his Cash Bit and Debt bit. You'll have a better understanding of where he's coming from after that. Don't assume anything, otherwise it's just speculation on your part. Find out his ACTUAL situation, but request permission to ask the questions first. Cheers, Tamara

If you know that you can contact the owner (providing you aren't cutting the agent out of the deal), go for it. 

As an owner, I would be ticked off and directing you back to deal with the agent – I don't take unsolicited door knocks when the property is listed. However, you need to overcome their objection letting them know that your offer has been rejected and whether it has been presented by the agent.

Jay,

Purely based on your replies so far.. it seems that you really want this property.

what is it?? House, Land, Acreage, Apartmentt, town house.