Help buying first property

Definitely fair – In the same circumstance I would offer around $250k and see what sort of response you get.

Then go to $255k, and ultimately up to $260k if you have to.

And if it goes above your budget, let it go! There will always be another opportunity around the corner,and it gives you more time to save money.

The REA has to present all offers that are in writing. Badger them to get it in writing. Put in an end date and see what happens. Plenty of vendors will go with a bird in the hand don't be afraid to negotiate. Remember if you don't get it it is still good practice for next time. Don't let emotion get in your way (very hard when you are on the edge of your seat). If you can't do written and want to play phone tag have a crack at this

Start at odd numbers

eg.  I've had a look around at some other properties, this one seems to tick all the boxes so I would like to offer $262,500.

They come back with no pretty much straight away. This is where you pump the agent for information. What sort of offers is the vendor looking at. Will they accept offers under the $270 mark, would they prefer shorter settlement etc. You say, look I need to confer with husband, wife, accountant, bank manager etc, I'll call you back.

Wait a little while even if you are not conferring. maybe 1/2 hr 40 mins. Then call back, ok I can up my offer.I can offer   $264, 700 (for instance) but this should be with a bit more hesitation, maybe talk about other properties you have seen for less etc. Keep them hopping and guessing while u stay calm and confident.

They may take longer to come back, the longer the better. A couple hrs is great 20 mins is not. If they take longer they have really considered it and the next offer will pretty much get it. They may offer something else $269 for instance, you say ill call you back after talking to xyz, This is where you put in what you want to pay, if that is $267 for instance put it in. This is the best price which is up on your last offer but down on theirs. Hold your nerve. This will be the quickest and longest 10 mins of your life if you are accepted.

If there is a lot of competition on a property this is not going to be great and you will find that it is hard to even get a negotiation started because they have 10 people trying it on.  If the property has been on for a while and they are keen genuine vendors then all systems go. Don't go really hard but go hard enough so that everyone is happy and everyone feels like they got a good deal.

Enjoy hope this helped even a little!

D

Just a slight disagreement here: as a recent vendor, this use of odd numbers was very irritating.    It just indicated a silly round of  game playing coming up.
 
As a buyer, I have one price, my highest, which the seller needs to take or leave within a few hours.      If it's rejected I am willing to negotiate terms but not price.

Don't forget also, that when a buyer thinks that all this "negotiating" is going on with the seller, buyer and RE, the RE is actually just pulling phone calls out of a hat to work the buyer up into a lather of panic.

Well done! Yeah I would just stay at that. Plenty more investment properties in the sea (or the country) If you do not get it don't worry as something better generally pops up and if you do get a call in a few weeks then you will be in the position of power. I've read a few  books and people put in stupid amounts of offers (like 100) to secure 1 or 2 properties for really cheap prices so I wouldn't worry about 1 offer! The other great thing is that it puts a number in the vendors mind. They can then sit for a couple weeks thinking that they would really like that amount of money

Keep it up, don't panic, remain confident!

D