Hi,

Information is power. I recommend to run through the set of questions in the “agent conversation record” template in Folder 3. I did this before making an offer last Friday on a property. I probed for info from the agent using the questions, and based on the answers ended up saving $8k on what I was willing to pay without low-balling the vendor.

The property was on for $273k , with an orignal listing of $299k. It had been on for a while. What I found from running through these questions was:
– the property was listed for $25k less than another in the same street in worse condition becasue the vendor was wanting to move to Coffs Harbour to be with family
– the vendor rejected an offer above $273k because the terms were for a long settlement
– the vendor had previously accepted an offer at $265k with standard settlement, but finance fell through.

Based on this info I offered $265k with 6 week settlement to meet the vendor’s needs. When the vendor countered with $269k, I stood firm and told the agent this was a win for the vendor only, as he got his terms and a higher price than previously accepted. My counter offer was again $265k with 6 week settlement OR $269k with 4 month settlement. $265k was accpeted the next day.

If you can gather information about the vendor’s situation and other similar properties in the area, you will be in abetter position to evaluate what is going on. It could be that the vendor is just testing the market, and if they happen to get a great offer they will sell.

Regards, Andrew.