Hi All,
I am looking at fairly new unit 6 years old. The owner says original asking price was 270 K and it has been on market for 2 months. now it has offers over 250 k.
the owner currently living, already has family moved overseas and he is staying back to finalise the deal. can confirm that, as I am reanting 2 blocks down.
question: is it ok to offer 230K or is that hurting his or agents ego too much.. i am confused what initial i should offer.
pretty sure, dont want to pay more than 240 k..
???
InvestHut
Dont worry about egos. Offer $230k with a settlement date on your terms. If he is staying back purely to get rid of this property, then clearly you are in the box seat, NOT the Vendor or Agent!
go for it….[biggrin]Originally posted by Hutch:Dont worry about egos. Offer $230k with a settlement date on your terms. If he is staying back purely to get rid of this property, then clearly you are in the box seat, NOT the Vendor or Agent!
go for it….[biggrin]thanks, I am thinking of doing same, new to this as you can see
spoke to agent, he said that I can just give him a verbal offer and will take it from there. I asked my cousin, who just bought one property. he was douthfull about this verbal offer.should I ask him to give me a form and put it in writing? normally settlement date is 8 weeks from my reading. should i offer 4 weeks or is that too soon to organise things.
ps: i have applied for home loan.
InstallHut
I would give an offer maybe even lower on a contract with a deposit. A seller can’t really say yes or no until he has the chance to sign off on it.
I would put on the contract the settlement terms that you ideally want but tell the agent that you are fairly negoitable to suit the seller. By giving the seeler this opportunity he may decide to accept the lower price to obtain terms that suit him.
It is far better to compromise on a settlement date by a few weeks than to have to compromise on price.
Hi,
I would offer less than 230k and like fallboy said I would then try and make settlement the negotiating point. But you may have played your hand to the agent by the questions you have asked him.
Make the offer on paper and go from there.Let us know how you go.
All the best!
[cigar]Hellow Plpp,
thanks for advice, i feel a bit more confident now. I will offer around 230 k, 1-2 k less or more.
With settlement, we had went to open house and owner was only there. real estate did not turn up as his brother was sick. thats where we got the info, owners family already overseas and he wants to move.
4 weeks will suit the seller i think, worst option if my current morgage rejects, then 4 weeks gives me some time to apply somewhere else and get settled with them also.
any lesser timeframe i think I will be rushing…other than time, is there any other think that seller might be interested and perhaps I can offer.
thanks again, will update soon.
InvestHut
Hi investhut,
Although you mentioned the unit is 6 years old, please make sure you allow enough time for due diligence and make the offer subject to:
* building & pest inspection, and
* bank valuation
I am buying a property where the bank valuation has taken a long time because of not having comparable sales. I do not know which area you are buying the property but make sure you allow enough time for these things.Other thing you might be interested in is early access to the property to make any cosmetic improvements (if the property requires any repairs).
With regards to making a written offer, you can type something up and give it to the agent.
Regards
Sanjiv
******“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Hi Sanjiv,
Thanks, I am thinking of saying 4 weeks, the building is less than 5 years old. but valuation and also my pre approval in tentative.
As they need my full personal tax return, for last 2 years bcoz I am IT contractor. I had send them only Tax Assessment for last 2 years, so getting that document from ATO will also take 3-4 days…
Agent said Strata of 439.15 PQ
Council 162.99 ( he was not sure, but guess PQ)
Water 112.00He is still more keen on getting a verbal offer first, rather than written on, so guess will say him 230 and see his resposne…
what u plp say? or type something up
InvestHut
I would insist on a written contract, signed by you.
The vendor can then countersign whatever he thinks fit. If you are happy with his counter offer, once you sign off, it is done.
No way would I do a verbal offer. How do you know what the agent will say to him? How do you know the agent will even tell him?
Wylie.
hi Wylie,
Thanks for that, I will do the same.
What conditions one normally includes in this written offer.
I am thinking saying quick settlement (4-5 weeks), given Bank Valuation and what else should I include.
InvestHut
I cannot help you with conditions because we like to live life on the edge and usually go in with a cash offer and no conditions.
I will leave it to others to advise on conditions.
All I would say is to be careful about how they are worded as you can get caught if the wording is out. If you have a solicitor, I’d have them advise of the wording of whichever “out” clause you use to protect you.
Wylie
Wylie is right. A contract already signed by you with a deposit already paid to the agent is much harder for the seller to say no to than some sound waves in the air. Even if the seller verbally agrees to your verbal offer either of you can back out in a heart beat.
Sign the Contract. Put in a finance clause and a building inspection clause. these should be adequate outs if you are serious about buying the place.
Hellow
Thanks, will follow that and keep everyone posted..
all i can say is, that first time its hectic process…
InvestHut
hi investhut
in my experience as a ip investor, u offer what u can afford, if u loos this one, another door may open, the market is sluggish at the moment, so u may have a chance on getting the price u want. Good luck
IsaGetting back to egos, never be worried, this is a business deal, and these people are not your friends.
I had a hairdressers years ago, and they were looking at a divorce property for sale for $135,000 (I said years ago!). Her husband offered $100,000, then $101,000, $102,000 and was accepted at $103,000. I could not believe it. Sometimes people are just emotionally or financially ready to sell, so offer lower if you feel like it. I thought I would be embarrased to offer that low, but now I would always give it a try.
Why does the agent want verbal, that sounds weird to me? Good agent not turning up to the open house. His brother was sick??? He would have to have been dying for a seller to put up with that. No support from other staff in the agency? You will know not to sell through them!
You should have asked the seller when his agreement with the agency runs out. He may have been open to a deal later, and hard for the agent to prove you viewed the house then if he couldn’t be bothered turning up. Sorry if this offends anyone, but an agent that lets the buyer do the open house is opening that door very wide!
kjs
Hi All,
That did come to my and brother in law mind, to tell him do a private deal, as we live a block away.. but someone, I could not say that time. also bcoz I am new to this. my First Home or purchase…
i keep an eye on for tomm open house, for half an hour. will check from far, how many go. and then go for my second inspection tomorrow and collect contract of sale.
will keep u posted.
InvestHut
Hi All,
quick one, the owner has open house every weekend. I am ready to out an offer for 228 k, they are asking “offers over 250k”
should write and send it to the agent on Friday or go to open house on weekend.
present my written offer of 228 k, subject to bank valuation and quick settlement in front of the owner and agent.
or pass the paper and wait for response. confused.
any help.
InvestHut
The owner may not be there on the weekend? How about give the agent the written offer asap, and go to the open house as well? They may accept the offer and cancel the open house? If the owner is not there on the weekend, then the agent may spend all day running around open houses and may not work too hard to get your offer to the owner on the weekend, but may wait till Monday? get the offer to him earlier I think.
Good luck!
kjs
Thanks Kjs,
will wait for my confirmed pre approval to come through and then act. should be thursday/friday i guess.
owner has been there for last 2 weekends, a single guy with his family overseas. i am thinking he will mostly be there.
i was thinking that I might not be able to negotiate that well perhaps face to face in open house.
but advantage being, i can see his initial reaction and perhaps be a better judge. likewise, they will see my face reaction to a most likely no coming from them.
InvestHut
Yes, that face to face is tough. He may need to think about it for a bit too, or he may just snap you up straight away, hard to tell.
The thing that worries me a little is that the agent doesn’t sound like much chop. He may help or hinder the process. Maybe if you do face to face he will see you are serious? Has there been many others at the open houses? You may need to wait unitl after the open house time and talk turkey to the owner then.
Best of luck! This is all a learning experience. Don’t be in too much of a hurry to up the offer though. If he baulks at the first offer, you need to be cool! Easier to say than do [biggrin]
kjs
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