I have found a property I like, was advertised $240-250k dropped to $245k and the agent said they would consider $240k. I've valued it around $225k and the max I would offer is $235k. It's been on the market for 1.5mths.
Should I make my first offer at $225k or lower? Thanks
The art of negotiation is that each side needs to feel they have gained some ground in negotiations.
Going in at $225k means you are unlikely to get it for $225k.
If you are making a lowball offer I suggest making it and then providing justification for your lowball offer.
Discuss comparible sales, issues with the property that need fixing ect. Don't just make a lowball offer and hope for the best.
Then when making a counter offer perhaps discuss your financial situation and that you are willing to stretch a little bit further.
Would you pay $240k for it or is $235k your absolute max? Would you pay $236k? It's important to know these things before negotiations so you know when to walk away. Some sellers just won't budge.
It is hard to say exactly how much to offer to begin with as I am not familiar with the property or the area or the agent.
Good Luck
Ryan McLean | On Property
http://onproperty.com.au
Email MeThanks, I'll re-think my strategy before I submit the offer
Hi investing_2013
Welcome aboard
Personally, if I've worked out that I'm willing to pay $235k then I'd start at a figure that will allow for two price jumps. I'd probably start around that $220k – $225k mark as it's not too ridiculously low that you'll lose credibility with the agent/vendor and it also allows you to move up a couple of $5k increments.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Why are you willing to pay $235K if to you it's worth $225K?
The truth is you don't know what the owner will accept. Try to find their reason for selling, if they have bought elsewhere etc. 6 weeks is not a long time. Also going from $240-250 to $245 is not a drop in price. It's just what they want.
Is this for a PPOR or an IP? I know with a PPOR there is more of a tendency to be emotionally involved. If it's for an IP just go with the numbers.
Knowledge is power.
I bought a house that was advertised for $610K. 6 months later it was advertised with a different agent for "offers over $$560K". I offered $548K and they said yes (no negotiation). Now I'm thinking I may have got it a little cheaper? Who knows? There was another very interested buyer back having a second look and measuring etc so I didn't want to miss it. It was a deceased estate and they just wanted it to be sold. I've made good money on it so all is good.
I was once told the more s*** you throw on the wall eventually some will stick.
I would low ball on numerous properties on a daily basis and would generally get abused by most agents. Eventually 1 out of 100 would come back and counter with $75,000 on my initial $50,000 offer for a house that had an asking of $100,000.
I pretty much knew that I would have the deal wrapped up at around $65,000 scoring a bargain.
Thanks for reading
EngeloRumora | Ohio Cashflow
http://ohiocashflow.com/
Email Me | Phone MeF@#$ THE REST WORK WITH OHIO CASHFLOW TO INVEST
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