Hi All
I have found a house, ready to place offer. Many houses in the regional area have been on the market for months and months.This particular home asking price $55,000, was originally on market for $60,000 (9 months).After some research I would say a fair price for this IP would be $50,000, it also rents at $110.
After using Jaffasoft calc I was going to place offer of $45,000 (cash) subject to termite, building inspections.
Agent tells me to not waste my time, need to be at least $55,000 and he has another person who will snap it up from East if I dont…. Yeah right?
I am scratching my head as none of the agents are interested in selling any real estate. They dont seem to care that properties are on the markets for months and months. Therefore I would not be surprised if he just does not bother to contact me any further. Unfortunately All the agents are not particularly helpful.
Any suggestions[comp]
Can you contact the owner direct?
They might be dissapointed not to get your offer passed to them. Although they may have directed the agent not to listen to anything under a certain price.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Many are like that. I suggest you just put your offer in writing and see what happens. You might as well send a copy to the vendor at the address so you know they will actually get your offer.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
HI,
this sounds too familliar to me! as I have learned in this forum once you make an offer, the Real Estate Agent needs to (by Law) present ths offer to the owner! Sooo ….. just put in the offer of $45K subject to “Satisfactory building inspection” and “Clearance of Termite inspection”, and of corse subject to finance. I wouldn’t tell them I had cash! Just use what you need for the closing cost and deposit, the rest for other investments. You might be able to buy two or three houses instead of just one.
With the house being on the market for so long, the owner miught just accept less money. As the agents pay is dependent on how much the house is sold (%of sales price) it is only natural that they would want to convince you to offer more! Try it, see how you go. you could alwys do a titles search and discover who the owner is and tell them that the agent doesn’t want t take your offer 9should they refuse to present it), see whast happens then. Keep in mind though, not to ““Pee in your own Pool!” If you understad my meaning. Good luck!Cheers
C@34
Originally posted by Marisa:Hi All
I have found a house, ready to place offer. Many houses in the regional area have been on the market for months and months.Agent tells me to not waste my time, need to be at least $55,000 and he has another person who will snap it up from East if I dont…. Yeah right?
Hi Marisa,
Your first comment sums up for me why I would have great reservations about buying in small regional towns – the ability to sell something quickly is compromised due to their being lower numbers of people. Finding tenants is no different either.
As for the buyer from the east – the obvious question is why is the property still on the market then? Didn’t the Arabian Nights have ‘buyers from the East’?
But back to the what do I do question – as others have said put the offer in writing and see what happens.
I would also approach the Shire and see if they will divulge some details about the vendor – they probably won’t but…………
You may also have some luck talking to neighbours – if the landlord is local they will know who it is – they will probably also know if they are absentee too.
Chances are that selling houses in town for $50K is just a sideline for the REA – his/her income is largely earned selling farms/farmlets/auctions etc
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks everyone for your great advice. I know the owner owns the petrol station (2 in town). However, as C@34 stated dont want to cut my nose despite my face .
Derek, understand reservations as new strategy for me. However, I believe this is a prosperous town with lots of potential and will give it a go.
Funny, I met the neighbour, nice old guy who told me about the 500 houses that a particular mining co was building across the road, shopping centre. etc. Anyway none was true.
Its great to talk to the locals, however you have to try to work out what is fact and what is fiction. Not to mention the conflicting information. Very Helpful NOT.
All in a days work.[eh]I will be putting an offer on for $45,000 to hell with it. If it is rejected will actually go up and stay for a weekend with family and really have a good look around.
Cheers.Originally posted by Marisa:I will be putting an offer on for $45,000 to hell with it. If it is rejected will actually go up and stay for a weekend with family and really have a good look around.
Cheers.Hi Marisa,
As you know who the vendor is you can now put in the offer you want.
If the REA tells you it was rejected then you can ask the owner directly if he got the offer.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Marissa,
Tell the agent firmly that you want to put in the offer even though you know they don’t like it, let them know it’s the owners decision, not their decision.
The worst that can happen is that the owner rejects it or they may counter offer higher but at least then negotiations can take place. Negotiations definitley can’t occur if they don’t know someone wants to buy the place.
I’d give whichever agent you wish to use an opportunity to show the owner first, but I would follow up in the mail if there’s no way it can be proven it was shown ie: if comes back with rejected and the owners signature then I wouldn’t bother with sending a copy but if you are just told verbablly it was rejected then I’d send a copy in the mail just to make sure the owner did get it.
Good luck
PKYou’re entitled to see a copy of the returned offer…any decent law abiding agent wouldn’t withhold it from you. Just make your offer and play it out….nothing to lose. As mentioned earlier, the agent is obliged to present it to the vendor. And you are within your rights to request a copy of the returned document.
PS Sounds like its in Geraldton maybe ??
Heard its been overrun by stampeding ES buyers…KP
Almost forgot….
Property been on the market 9 months ????
Exclusive Agency almost certainly has expired…. maybe you can go direct to the vendor, ensure he cancels the listing in writing, and then negotiate direct…more scope for price negotiation when there isn’t an agents fee involved. By the sounds he hasn’t been doing his job anyway if its taken 9 months to sell..I did something similar…only it was a FSBO and I was the seller… advertised the property and was inundated with enquiries from AGENTS. Offered them a part commission if they found a buyer, unfortunately, I found a buyer first.The buyer was happy as I was able to reduce the price by equiv of an agents fee. Seemed like a win/win outcome, and no agent involved…. KP
kp got it spot on. As an agents representative, i cop sh!t all the time as soon as you mention that youre a real estate agent due to people like this lazy guy. Thing is, the way the property market has been, agents have been getting their commissions very easily, and those that have only been in the game for a few years have only known the good times, when properties are easy to sell. Once things get hard, a lot of agents have been shocked when it takes ages to sell a proerty as they realise they dont have the ‘sales skills’ they thought they had when the industry was on cruise control.
Hmmm, that was a long drawn-out sentence, but i think you get where im coming from. Basically, legally the agent should be doing a lot of things that he cant be stuffed doing. Remember that investing is business, not emotion, so you’re entitled to go straight to the vendor to negotiate. A lot of vendors (not investors, but vendors such as old people, career people etc) may be offended as they have hired an agent to take care of the sale & dont want people bugging them about it, but im sure their mood will change once you let them know about what the agent hasnt been doing.
Of course, if unable to negotiate with vendor directly, submit offer, in writing, subject to …, and write that you expect a written reply by ___/__/2004, signed by agent and vendor(s). Maybe a nice little clause at the end could be that failure of the vendor to sign by the above date will prompt action by means of a report to the REIA (or state level). Of course being a clearly lazy agent that probably has forged signatures many a time, this may occur and the vendor may not even see the offer, but its got more of a chance of them seeing it than simply submitting an offer $10000 below the asking price.
Cheers – good luck!
(“,) $$$ HoLdEnCoMmOdOrE $$$ (“,)
Thanks everyone for advice, very helpful.
I actually did not go ahead with this IP, and will not deal with the agent,he was extremely rude when I would not go ahead with the deal.
Am about to place offer on another IP with a different agent, who is happy to put forward my offer.[biggrin]
Marisa – heya :o) I apologise for not returning your PM- I did mean to. [blush2]
Marisa, I think if you feel that a property is worth 50k, then offer that. If people want a property, then it can be worthwhile paying for it. To me, it wouldn’t matter that some properties in the town have been on the market for a long time- that doesn’t mean anything to me
) If you have a stable tenant who wants to stay, then it could be a good investment. Buying it at 50k means that you already got almost 20% off the original price- that would not be a bad thing.Regarding the RE agent, well, I am not sure what kind of fellow he is. What I do know is that I was selling an IP, and some people really messed me around until they pulled out. This wasn’t great for my psychology, and a RE is working for the vendor, not for the buyer. But then again, sometimes people just have poor interpersonal skills- go figure, you get that everywhere. I think the RE was entitled to not want to paas an offer that he might view as “ridiculous” to a buyer. I have made an offer on a place, and the RE just said “look, the owner won’t accept it.” And I knew tey wouldn’t either- the RE agent is there to negotiate- and to protect the buyer. I respect the job they do.
I think 50k @ $110 rent a week might have been a decent buy- depending on other variables. But if it wasn’t right for you, then you are probably better off not having gone through with it
At least you’re getting to know what’s available. Sometimes, negotiating RE – even if it doesn’t work out- is some of the best learning experiences we can have.kay henry
Marisa,
Seeing as you no longer want to purchase the property, how about passing the address onto someone else who might consider it.
Sometimes more than one offer at $50k is the wake up call the agent needs that MAYBE thats where the property is, pricewise…its only worth what a willing buyer and willing seller agree to transact at….regardless of sales evidence, current market,,blah,blah.Especially after 9 months !!!
Unless the vendor is difficult, or stubborn and simply not negotiable…
As far as him being rude, that is simply not tolerable, agents have a code of ethics and conduct to abide by, and this clearly seems to have overlooked by this one.
A quick complaint to REIWA or REBA is whats required..KP
thanks Kay Henry & kp, sometimes the figures look good, I must admit though since using Jaffasoft calc., you get a clearer picture and what I thought sometimes was positive turns out to be negative. Cheers
[exhappy]
) If you have a stable tenant who wants to stay, then it could be a good investment. Buying it at 50k means that you already got almost 20% off the original price- that would not be a bad thing.
At least you’re getting to know what’s available. Sometimes, negotiating RE – even if it doesn’t work out- is some of the best learning experiences we can have.You must be logged in to reply to this topic. If you don't have an account, you can register here.
