Hi everyone,
This is my first post so please be gentle with me.
I’m looking to buy my second investment property. Well actually it’s my first property purchase without any assistance from a buyers agent. I wanted to have a shot at negotiating on my own this time and I figured it’d be good experience.
I even have the place I want in my sights. It has been reduced in the last 6 months from 395 to 330 apparently because the vendors are going overseas soon and they are running out of time to and desparately need to sell. The vendors reserve or desired price is ideally 345 but the agent reckons is I offer 330 that it would secure the sale, but that I need to act quickly as it hasn’t been advertised for the reduced price yet, he’s just letting me know as a favour (hmmmmmm???).
I even got my uncle to have a look at the place with me, as he is a property valuer by profession and he reckons its a steal at that price and said it’s probably worth in the vicinity of 345.
What should I do????
Thanks in advance.
Pepper
Originally posted by Pepper:Hi everyone,
This is my first post so please be gentle with me.
I’m looking to buy my second investment property. Well actually it’s my first property purchase without any assistance from a buyers agent. I wanted to have a shot at negotiating on my own this time and I figured it’d be good experience.
I even have the place I want in my sights. It has been reduced in the last 6 months from 395 to 330 apparently because the vendors are going overseas soon and they are running out of time to and desparately need to sell. The vendors reserve or desired price is ideally 345 but the agent reckons is I offer 330 that it would secure the sale, but that I need to act quickly as it hasn’t been advertised for the reduced price yet, he’s just letting me know as a favour (hmmmmmm???).
I even got my uncle to have a look at the place with me, as he is a property valuer by profession and he reckons its a steal at that price and said it’s probably worth in the vicinity of 345.
What should I do????
Thanks in advance.
Pepper
Offer 315 and see what happens. Thats factors in another 10% decline in the market.
Gee Whiz Super Ted!!!
Don’t know about that, I mean isn’t that really being a bit too cheeky??? Like, 330 is 15k less than their reserve, now to offer 30 less, oh gosh I dunno???
Do you really think its worth a try, and reasonable???
Pepper
“If you’re not embarrassed by your offer, it’s not low enough”
It’s amazing what could happen, you can always go up, but you can’t reduce your offer.
“Looking forward to the day when I can tell the boss where to go”
Thanx Myydral,
Thats awesome, I really like that saying, did you make it up???
Pepper
Wish I did. I read it somewhere, maybe even here on the forum, or was it Robert Kiyosaki?
I can’t remember, but a while ago I put in an offer on a house, I wasn’t embarrassed, but my girlfried said “Isn’t that a bit low?” Immediately the owner came down $10K. Still nowhere near what I offered, but they came down immediately.
Give it a go. They can only say no.
“Looking forward to the day when I can tell the boss where to go”
Hi Pepper, I recently placed an offer on an IP well below asking price, my partner stated “THEY WOULD NEVER ACCEPT THAT PRICE” …. guess what, he is eating his words now…. I got it.
Go for it if you dont you can be sure someone else will.
Good luck[biggrin]Hi Pepper,
If your finance is in place, and you can offer a clean contract (not too many conditions – or none), you can be quite successful with an outrageous price. At times like this, the vendors want to know “it’s sold” and will be more amenable to accept $310k (no conds. 14 day settle) rather than $330k, subject to everything, and 60 day settle
I agree with the others – try it on. Also, “maybe” the vendors don’t want 14 days settle, “maybe” they do. Suit their situation with everything except price, and you negotiate the price Good luck
Benny
As everyone else has said – offer the low price, but some kind of sweetener such as the short settlement, or release the deposit to them.
Remember the price you pay is the market price, if they accept it the price cannot by definition be ‘ridiculously low’
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
Originally posted by Aceyducey:Remember the price you pay is the market price, if they accept it the price cannot by definition be ‘ridiculously low’
I couldn’t agree more Acey!!!
Pepper, the market is made up of people and as such YOU are that market!!! If the vendors accept your offer, then it cannot be considered “too…” anything!!! Furthermore, I believe, as Acey and others have suggested, that if you were to sweeten the deal by offering a shorter settlement, your offer would be even more appealling particularly if they are wanting to get away sooner.
All the best with it; keep us posted on how you fare.
Jo
Thanx everyone,
Your feedback has been awesome!!!!!! [thumbsupanim]
I feel so much more confident now after reading your views that have puckered up enough courage to ring the agent and make a time to see him (with my offer) tomorrow morning.
I’ll be offering between 310-315 mark (a real bargain if accepted) and 14 days settlement. Wish me luck….
Pepper
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