Hi all
Is there a guide that I need to go by when placing an offer. Never done this before BTW, so its all new to me. If the range is between $360-$400, is it worth the shot if I ask for $350k, or will I get laughed at?
TIA
SpunkyHi Spunky.
You bet it's worth it . Offer anything you feel would be at the bottom end of reasonable in 6 mths from now and then minus some again .
Yep you might get laughed at , tough , but eh not so tough when you get the old phone call .Don't go paying some silly price now whatever you do, asking for trouble . There's still plenty of sellers in la la land .
Cheers
PS . Actually the offer is my fav' subject to tell you the truth and I only wish I was a bigger fish in the sea so that I could buy more when time comes .
Well I put in an offer on Saturday that got accepted today
Place went up for sale in April for $439k, went down to $429k, then to $399k and then offers from $380k. I put in a lowball offer of $340 which was my max and very surprisingly it was accepted today!
It's a street front town house, 1 that went on sale at the same time was sold 3 months ago for $429. Same seller non street front
One non street front sold for $450k in April 07The realestate agent pretty much laughed at me when I offered but now look whos laughing! Suburb with an avg house price of well over $1mil 300m from the beach, 15min drive into Perth CBD, 2 min walk to traino then 10min train into perth CBD. Picked up a Bargain IMO by putting an extreme lowball offer out there
If I was you I would go $320 – $330k
Now is the time for low ball offers. Most would except the fact that prices will be lower in 6 to 12 months time so make offers that reflect that. Dont be afraid. I believe i paid too much for my first Ip. It will not happen again. To offer 20 to 30 % below asking price is not too bad. Its a good starting point. Some may laugh. Others may have you rushing to organise finance,.
Nice one Howard .
Yeah I see more and more now just how important the deal you do is and plus it helps cover your butt .
I mean what a 100 grand before you've even started , lot of mooler isn't it !
I haven't done many compared to most here but it just amazes me the power in whatever deal you decide to do at the start.Watching a few people I've come across , the strategy and art form they turn it into , almost embarrassing but does it pay .
These days I almost reckon myself it's probably the most important part and can often match again anything you hope to do on the place later .I paid too much for my first one to Devo , second one too I think but I'm getting the hang of it now and go for broke . Anyway if ya gonna buy anything right now you have to I reckon
Cheers.
Spunky
Great Topic & a very importaint one. Never worry that an agent will laugh at you or your offer. Mate, it only takes 6 or so weeks to be an agents rep. So you can compair an agent with a sales person at the local weekend market. No more no less ( Im sure some one will disagree with me and try to tell me its a 4 year Uni Degree ) They have to take all offers to the vendor unless instructed not to. They love to talk about purchases behind their back, he is a tight ass or he wants it for nothing, here he comes again with a low ball offer. ect. Its your offer not theirs. Remember they dont own the property. They may laugh at your low offer but will piss themself when you pay 30k more than the vendor wanted. That night you will be the talk of the dinner table and the agent will be telling his colleges of his victory over you. And all the time you think he / she is the nicest person in the world. (when their nice to you this is a sigh your not barganing hard enough)
By the way they do take it personally when you let them know you have a good idear of the true value of the place and you know what your doing, some are insulted by it. Ive talked to young couples who have been scared to ask for a discount or make an offer less than the advertised price. This is why the vendor employs an agent. Sorry to rant but remember your the boss, you have something they want MONEY.
Minster wrote, " Offer anything you feel would be at the bottom end of reasonable in 6 mths from now and then minus some again ." This is very importaint now. Whats it going to be worth in 12 months, think about it hard. The agent wont get it and the vendor wont get it ether. But in 12 month time they will. Ive had my last 3 offer knocked back for as less as 5 k, go figure.
Beware of faulse savings, a vendor who drops the price 50k fast new he was never going to get that price anyway and would have sold it to you for 50k less eventually. A few things to consider:
Not all properties are over priced that much. So you may be pushing it up hill to get them down 20 or 30 %.
Get the Sect 32 & see what they paid, work out there clear profit, is its a fair mark up, would you sell for less?
Money talks & BS walks make your offer in writting & dont let them know any offers before verbally, they may play you off with another buyer.
Yes, the other buyer, the keen cashed up intrested person who is willing to pay listed price. Ive met him at each offer Ive made, Im sure you know him also. Dont ask "have you had any other offers" If you are told of an offer OK ask the price, if they tell you, ask to see the contract. They wont show you it then ask them why not you just told me their price. Will you do the same this mine.Dont be swayed by other buyers offers. Make up your mind what its worth to you first financially then secondly the other things. No one likes to over pay but for the sake of a few grand get on with it, its small money at the end of the day. Try to let them win, eg. OK you win I can go to my max and pay $1000 more and thats it. Vendors like to think they have got every cent out of you.
Man you can do a Uni Degree in buyer behaviour but all you need to do is your research make up your mind on the price and stick to it. Put your offer in writting & tell them as little as you can and dont forget to be polite.
All the best to you with this and future offers.
Tony B would like to wish all a sucessfull and save new year & thank you for your support in 08.Regard
Big T………………….
Had any luck in finding a project then Tony or ? I remember you were undecided on whether to move or wait .
Cheers
It's all about motivation. Find out how long the property has been for sale for and how much they paid for it. I have offered $260K on a place that was bought for $280K two years ago, but the vendors have done all the paperwork to sub divide the block and all I have to do is the sewer and electrics within the next three years and I have a free (or very cheap) block of land.
If you let the agent know you have no emotional attachment to the deal (even if you have) and that this one of a dozen offers you will be making this week, then see how fast the agent puts pressure on the vendor to sell.
I sympathise with those who have lost money over the last couple of years, but it's not my fault and if they had been more cautious or done more reasearch themselves they might not be in the position that they are.
Howardcm sounds like he has a great deal, but if too many of those go through then it will drive the median for the suburb down, and that's what the bank look at when you want to revalue and pull the cash out.
Best wishes to all for 2009.
Deciding How Much to Offer:
The advertised price of a house is just a starting point. It's up to you
to decide how much the house is really worth, based on such factors as:how much comparable houses have recently sold for
whether the local real estate market is hot (demand for houses is high, and prices are going up)
or cold (prices are dropping)
the seller's needs, such as to move quickly or to be reassured you've got the financial resources you say you do
whether the house is uniquely valuable to you, for example if you need an in-law unit or art studio, and
what you can afford, after a careful examination of your budget.Hope it helps
Rule of thumb,
Unless you are sworn at and chased off the property with a broom – you offered too much.
Put simply, there is no rule of thumb – it is a negotiation. Negotiation comes down to being able to make the two parties agree on common ground ie at what point are you willing to walk away from the deal never to be revisited? and at what point will the vendor no longer be interested in talking to you (this will relate to their motivation for selling)?
As above, unless they laugh at you, you're in the hunt.
lifeX wrote:Rule of thumb,Unless you are sworn at and chased off the property with a broom – you offered too much.
Mister –
Uh ha , I've finally found the perfect strategy . I new I hung around here for a reason . LifeX , I hope you don't mind but I'm adopting this one as my rule of thumb from this day forth .
Cheers
You must be logged in to reply to this topic. If you don't have an account, you can register here.
