Ok I need some serious negotiating help here! Have put in an offer on our “dream” property. Vandor is asking $1,650,000. We have offered $1,400,000 but are prepared to go to $1,500,000. That is every cent we can afford and also means we will be living on baked beans for the next two years.
The agent is away at present and will be back sometime next week, he got his receptionist to just fax our offer to the vendors. The vendors must have contacted him by mobile immediately as he rang my other half and said they want $1,650,000 FIRM based on another property up the road asking $1,500,000 which has not sold. The property we want has only been on the market about 3 weeks. We have said to the agent they can stay and rent for the next 2 years or how ever long it takes for them to rebuild as we cannot move there for 2 years.
We are very disapointed that they will not even negotiate. I would very much appreciate any help so we can make this deal happen. The greedy old buggers will not budge.
Any ideas would be very much appreciated.
Cheers
Vyvyen
[angry2]
Whos the one being greedy mate? If you cant afford it move on, thats the price-if he wont accept either get over it, or wait a while for the pressure of no sale to getto him and he might budge. But there is no way known anyone in their right mind would drop 200k after only[blink] 3 weeks
Hi vyvyen
This one is a hard call because people keep saying its a buyers market, well it is if you are willing to sell.
If these people are not willing to sell under 1.6 in this market and you want it you need to find away of getting there.
My veiw as an investors is if this property is valued at 1.6, you will need a very good return to make it work and unless its commercial there are not alot of 1.6 mil resi properties in this market that I would be throwing my hat at.
If its in sydney you are in big problems because the upper or high end value properties have not moved at all with in the last 12 months up or down and the people that have them are waiting for the market to move, from the real estate I have spoken to have told me that part of the market is selling but no significante movement so I would either keep going closer or move on and invest a high return vehicle and as for dream property well I don’t get emotional about property it is a vehicle and I’m not a rev head, look at this property as an investment and if you can afford it do so but don’t over stretch as people that over stretch just like reaching for that apple have attendancy to come crashing down in a big heap.here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]Hi vivyen,
Have not a lot of advice because it will end up being entirely up to how much you WANT the property
HOWEVER
I do resent you using old and greedy in the same sentence—
I am not saying there is not some of US out there —I just do not like to read it in the same sentence.Anyway good luck with it.
Cheers LenHi vyvyen
As it is a sellers market over here I cant see the owners dropping that much. Also this area is in high demand, they really dont need to drop.I am not going to be very helpful, but is there any chance whatsoever of raising additional money, selling off an additional IP?
I believe if a property is unique for whatever reason it is worth sticking your neck out as it will pay off. Hate baked beans though.
Good luck.
hi there
I just don’t get why you would want to spend that kind of money on your home when you say you are scraping together every last cent and will live on baked beans for two yrs.I CAN understand scraping together every last cent and living on BB’s for two yrs if I was investing that money that was going to give me a fantastic return.
Or I CAN understand accepting a cheaper home that wont stop me from enjoying a comfortable lifestyle ie overseas travel and wining and dining
[wacko]
Also missing out on this deal might be a god send-if you are going to have to live on bake beans in this financial climate what are you goingto eat if interest rates go up or the ecoomy takes a slight dive??? bread and water..maybe just water?
Thanks for the replys and the reality check. Find it very hard not to get emotional when your other half has found THE dream property to live out your days on – well until we hit the retirement village. Other half has said to leave offer at $1,500,000 as we are not in a position to sell our own PPOR or IP owned by our super fund or other IP which we have had for just under 1 year. Can’t relocate to dream property for 2 years because of business and schools. I will pray to win Lotto this weekend and if I do – the party is on me!
Hey Vyvyen,
Sounds like you have made a wise decision to just hang back a little for a while!Another thought I had.Have you tried praying?
God is pretty powerful you know!Regards Dematio
We’ve got 70 yrs on planet earth,Lets make the most of every day!
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
hi vyvyen
unique properties (dream properties) don’t have a problem selling.
just ask the guys that own mansions over looking sydney harbour.
they just keep compounding
and the one great thing about those properties, if its your PPOR, is NO TAX
compound growth, no CGT
must be heaven
if someone offered me 200k less than i asked, i would be insulted, and so would you.
six months down the path , it might be a different story.
just another thing, unless your retiring soon, using any of your super for a PPOR is going down a dangerous path.BB’s are nice
harry
Going in and playing hardball (I call lopping a 1/4 of a mill off fairly hardball…your offer is less than 85% of asking price) is very difficult when you are both caught up with the “dream”.
If I was the vendor I would have simply screwed the offer up and thrown it straight in the bin, not even bothering to call the agent. Just out of curiosity, was your offer cash on the nose, unconditional and settlement in 7 days to justify such a low offer ?? Or did it have a whole bunch of hurdles attached to it. Some on this forum even suggest clauses like “My wife must like the colour of the drapes”….Come on chaps, we live in the real world now…as if any of that type of seminar taught rubbish is actually going to fly ??
You’ve put yourself in an extremely weak bargaining position. They are in an extremely strong position. Given the respective positions, I’m not surprised in the least at the outcome.
What does your due diligence and thorough research indicate the property is worth ?? If it’s realistically worth in excess of say $1.6 MM, and your max funds are 1.5, it truly is your “dream” property.
Hi Vyvyen,
- what is so unique about this particular property – why is it your dream
- will your dream be the same in 2 years time
- Is your dream really worth eating baked beans for 2 years
- Get a valuation done by a reputable firm with experience in that end of the market – gaurd this information with your life
- get finance pre approved in writing
Withdraw your offer. Find this agent and tell him you want to meet with him and you won’t be doing anything until then.
You really want to be in the same room as the guy when negotiating. Fax just won’t do it.
[email protected]
Property Spotters living in NZ .
We are active in this market and buy Properties directly from the public. Maybe you want to sell?
Email now to receive info on the lastest deals.It’s a problem when you get’emotional’ over a property..though most of us do it!
At the end of the day the property is worth “exactly’ what you are prepared to pay for it..if you cant afford it..fine, walk away; I’d love Kerry Packers house, but I cant afford it…I’m happy to accept that fact.
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorVyvyen,
Maybe you can make it much more attractive to them, such as rent free, although cashflow wise this will not assist you, but it may help your dream house a little more.
Mate, I believe alot of the comments above are true, i.e. property fresh on the market, you have put in a low offer. Would have been great if the accepted it, but they havent, it would need to be more realistic to the vendor.
So where to from here anyones guess, never cut your finances so short / fine, that baked beans become the weekly mains
Interest rates / personal porblems / building problems.
you maybe be worse off then us guys here will see the property back on the market for 1.2 mill fire sale
Cheers & good luck
At the end of the day the property is worth “exactly’ what you are prepared to pay for it..if you cant afford it..I think I know what redwing is saying here but just to clarify it is not really worth what you are prepared to pay for it if you are prepared to pay over the valuation.
Do you mind telling us what state this property is in.
How about an update.
[email protected]
Property Finders living in NZ .
We are active in this market and buy Properties directly from the public. Maybe you want to sell?
Email now for information sheet and current deals.I’d love Kerry Packers house, but I cant afford it…I’m not surprised Redwing, ol’ Frank apparently bought the abode in Bellevue Hill for 7,500 pounds back in 1937. I’d say it’s appreciated somewhat in the last 68 years.
Sorry Vyvyen…way off topic I know.
If this is the last investment you can do in 2 years, letorlone save for another investment past that, what are your goals?? Sounds like you are either spending your savings or planning to go back to work in the near future..
Jakethemate..
I need some serious negotiating help here! Have put in an offer on our “dream” property.
I thought the idea was to make money or buy properties to live in that we CAN AFFORD now NOT FALL IN LOVE with dream homes
Vandor is asking $1,650,000. We have offered $1,400,000 but are prepared to go to $1,500,000.
As a couple of other people have already stated it is early days for accepting a 250K lower offer. The owners now have a benchmark that THEY think is the lowest point they need to go so will use your offer to line up all other contenders with (get ready to make a new offer LOWER when they come back trying to get you up 100K) (I would revise down to 1.3Ml saying things had changed for the worse sob sob)
The agent is away at present and will be back sometime next week, he got his receptionist to just fax our offer to the vendors. The vendors must have contacted him by mobile immediately as he rang my other half
How weak is this agent forwarding on a 1.5ml offer via fax through his sexatery while on holidays enjoying the benifits of sales generated by people like you (I think this action is the worst part of the whole sorry chapter in your saga)
We are very disapointed that they will not even negotiate.
Steady girl steady wait for the clock tower they will be back looking to do a deal if not keep looking
[biggrin]
Vyvyen,
As you probably don’t like baked beans much anyway and can’t move for 2 years, what’s the rush?
After a week, go back to the agent with your $1.4m offer, let him know that it remains open and you remain ready to talk. Then don’t do anything.
If he’s half decent as an agent, and they get another offer, he’ll come back to you to see if he can get a better deal from you. Don’t forget to ask to see the competing offer, BTW. Sometimes they will and sometimes they won’t, but you should at least try.
Possible results – some maniac will offer over $1.6m. You can’t afford that, game over.
OR
You’ll be the only bidder – you may be able to come to an agreed figure. Don’t forget, the vendor may have needs too. Strong possibility that you can get it for a decent price.
OR
Others will be interested, but not at the asking price so there’ll be a bit of a dutch auction. Outcome uncertain.Have a game plan, and stick to it. One other thing – go hunting another dream home as well, so that you can start the process again. If you find one, let the agent know you are offering on other properties.
I would make the offer again and this time in writing with a sunset clause (72 Hours) and the deposit cheque stapled to the offer.
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