So I recently drove 5 hours fr Sydney to look at a property on the north coast it’s listed as $109k but when I went to the inspection the agent told me it had been listed for 12 months my property value subscription tells me it’s been on the market for nearly 2 years at the same price property prices have gone up since neighbouring houses in similiar condition are being sold for 115,000+ recently one sold for $135,000 and a few doors up and this house is one of the more decent ones . The agent said that he would take an offer of 105,000 to the vendor and so I agreed and offered 105k but the next day at lunchtime he emails me to tell
Me another buyer has come into the picture (I call bullshit) and is offering slightly more , now when he said slightly more I was conservative I increased my offer by $600 and he said it would have to be closer to the 109k mark he’s not disclosing the “competitions” bid so I said I would have a decision in a few hours I came back with $107,100 and he’s still turning it down saying that I have to come closer to the 109k mark so it’s definitely bull but there is that slight chance maybe 5% chance he’s telling the truth but I don’t think so , it could be that the vendor simply doesn’t want to sell below 109k the thing that’s got me up in a toss is that honestly another $2,000 isn’t really a big deal I do want the property but I guess it’s about the principle ? Is my ego getting the best of me right now? I’m not an emotional buyer at all I bought my first property without even inspecting it I was content with the building inspection report that I had done and it’s been a great buy to date, I didn’t even negotiate a price for that one either I simply went in and paid a deposit on listing price I probably could have saved $5,000 but I couldn’t be bothered . Am I being too nitpicky right now give me your advice guys, also any suggestions on keeping the price below 109k?I haven’t replied to the agents last text message yet I’m thinking of asking if they would consider 109k a done deal and if they don’t I absolutely won’t pay more then listing price but I’m concerned that’s what the agents trying to do
Hi Dolamoot,
Am I being too nitpicky right now give me your advice guys, also any suggestions on keeping the price below 109k?
Well, you have SEEN it and it seems to stack up against neighbouring houses (“recently one sold for $135,000 and a few doors up and this house is one of the more decent ones”) so, on that basis, I’d be saying if it seems good value, pay it and smile.
BUT !!!!!
I haven’t replied to the agents last text message yet I’m thinking of asking if they would consider 109k a done deal and if they don’t I absolutely won’t pay more then listing price but I’m concerned that’s what the agents trying to do
There are a couple of points that have me tending to agree that “something seems a bit off”.
1. It has been on the market for TWO YEARS !! Really? Does the Agent have a plausible reason for that? Would it have anything to do with the “house needing under-pinning”, or the “Council is about to resume the front half of the block for road-widening”, or any of 100 more possible gotchas !!! Worth a bunch of searching questions, maybe even a trip to Council, and a “Get out of Jail Free” condition in the contract (e.g. subject to satisfactory due diligence within 14 days).
2. “A new buyer just showed up” – Hmm, right after you arrived (the only buyer in 2 years) – must be coincidence, eh? :p
So, is there REALLY a buyer? If not, then you could take the risk and let your contract read $107k (but add a Sunset Clause so they aren’t dangling you on a string – e.g. “If contract not accepted by Vendor by … date … then it is null and void” – check the wording with your solicitor).
If there IS a buyer, and they really have offered nearly $109k, who is to say that they won’t offer more if you step over them? So, you could find yourself in a Dutch Auction. Or, you give them one shot – “this is my offer – if not accepted, I walk” and be prepared to lose this one.
One thing in your favour could be the Agent – it means little extra $$ to them if you pay $1000 more for the place (the Agent might only see $10 of the extra $25 commission). But, if they are made aware that you might be shopping for more IPS, they might just swing things in your favour to get you wanting to use them in future deals….. Food for thought.
The #1 question “Is there really another buyer?”
Benny
The real question is – what is it worth? If you think is $115k+ then maybe $109k is good. I hate the back and forth, and I never do it. I offer what I think it’s worth and make it clear I won’t budge. I’ve walked away a couple of times and some of those I’ve had the agent call me back.
I would make one final offer and be prepared to walk. Maybe change the terms like settlement, or say you’ll pay more but want inclusions? I’ve got things like fridges, home theatre, couch etc.
It’s rather an undesirable area to most investors it’s a majority housing commission area but I met the tenants when I went to inspect and the fact they have a flourishing vegetable garden means to me they are responsible and care for the house I’ve never seen a bad tenant with a well maintained garden or vegetable patch and it’s a sign they are willing to stay long term for 109k it’s renting for $215 a week which is about 10% gross return and 6ish net after rates and management, I have 120k sitting in my bank right now
I’m considering withdrawing enough to make it look like I only have 104,540 or some rather odd amount just short of my bid to give the picture I’m prepared for a fast settlement I gave the impression I’m looking elsewhere but I honestly don’t believe there’s another buyer but seriously 2k probably isn’t worth the headaches 😂😂 but I’ll see how I go it’s going to be a Mexican standoff to see who gives in first . If they reject my 109k and the “other buyer” bids above me then I’m out of the game.I don’t mind owning ex housing commission stock because from what I understand and have researched the land tax is nonexistent for these lands because the values seem to be capped at 15k by government land valuation so you would need to hold atleast $4mil in today’s prices of property to reach the threshold .
In my last message to the agent I said 107,100 was my final bid and that I was expecting a counter offer and that my financial advisor insists i Retract my offer and any further negotiation to go through him starting at 100k. Just to play him around back I will make him frustrated and insist to the seller I won’t be milked anymore I think I made the mistake of driving my flash new gt 86 to a shitty country town housing commission the agent was driving a beat up Pajero so he probably thinks I’m loadedShould I just tell him I don’t believe there’s another buyer and that I’ll take it at 109k? Just don’t want to give in too easy. You have to wine and dine me before you f&$@ me
I’m about to
Message him back with“I had another talk with my advisor this afternoon, we’ve agreed to go $108,000 but I’ll have you know I’ll need to find the extra funds somewhere I can’t afford that right now so I may need a delayed settlement , how does that sit?”
If you said your last offer was your final offer then I would stick to it (money wise at least). You can’t say it’s my final offer and then offer more. I would probably go the opposite direction and say you’re a serious buyer but you’re getting pissed off with the back and forth, same amount but go a short settlement or something.
I must admit that it sounds like a good deal on the surface so I am worried that there is something wrong. Why would a positively geared (probably) property sit on the market for 12 – 24 months? It has a bit of an odd feel to me. I would double check my due diligence.
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