Ive found a property just come onto the market 24 hrs ago. I have viewed it and believe it to be unbeatable value! It is a mortgagee sale hence the good price. I ve been researching the market for a while and am willing to pay straight out asking price to secure it. However its so good im wondering whether people often put offers above asking when there is competition. I have seen other properties in this suburb go quickly when priced right so i expect the same of this one.
Not sure whether just to try best bet of offering asking price or give a bit more? Cos i assume the bank would likely take higher sale price all other terms being equal?
I wouldn't offer more.
Just confidently provide your offer, pay your holding deposit and organise finance ASAP so you can quickly exchange contracts.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I think offering more is likely to trigger thoughts that they mispriced it. An offer at full price is likely to be accepted.
I recently purchased at 20% below the real market value of a property, simply paid the asking price and took it off the market. The agents phone was ringing off the hook with around 10 others trying to put in offers.
The key thing is just to get all the paperwork signed, which allows you exclusive rights to the property.
Thanks for the advice. I will go with asking price only. I know that the the neighbour (other side of the duplex) viewed the property and the agent has said that they are organising finance to put in an offer. He said they are taking expressions of interest to present to bank. I just know there will be a lot of interest and offers after the 1st home open on Sunday, but i will just try get mine in early.
MrsC wrote:Thanks for the advice. I will go with asking price only. I know that the the neighbour (other side of the duplex) viewed the property and the agent has said that they are organising finance to put in an offer. He said they are taking expressions of interest to present to bank. I just know there will be a lot of interest and offers after the 1st home open on Sunday, but i will just try get mine in early.Tell the agent that you're finances are organised and you will be ready to exchange as soon as the valuation is complete.
Do you have to wait until the open home to place an offer? Sometimes being a little persistent can get you access to the property a little sooner
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie, the agent has just said that he will wait for both our offers (and and others that come up) before submitting to the bank. Not sure how many they ask for as minimum or max?
MrsC, that doesn’t seem right unless the other offers are presented on the same day. There is no minimum or maximum, well I guess technically the minimum numbers of offers to be presented is 1 (or I suppose 0!). If home open is this sunday, and you have finances in order, done your due diligence and very keen on it, submit an offer in writing today with a sunset clause that says the offer expires 5pm Friday 4th or even Saturday 5th. Make the offer expire before the home open, that way the REA cannot sit on it and not present til Sunday.
For a recent offer I wrote up, the REA had told me he was expecting another offer to be written up the following morning (we signed around 7:30pm). He told me both would be presented to the vendor but ours would be presented first as it came in first.
This can be a frustrating process when you are dealing with a bank on the other end of the transaction with a sales agent in between.
We have been involved in two recent ones in the last few weeks and it was an ordinary experience, they weren't motivated by anything other than covering themselves legally, which made it difficult. We offered full list price for one with tight conditions and lost, the other property went for a good deal below list price and it was another multiple offer scenario!? So difficult making any rules other than the bank/mortgage insurer just don't care about you or your motivations. They ended up costing themselves perhaps 10-15k on each property (same people selling) but.. I don't think they care about that either. Also the negotiations dragged on for an unreasonable time, but no point making a sunset clause as the reply would be 'so what?' and we wanted to secure both properties.. so play by their rules or the highway!
Wisepearl, i think he will be presenting offers on the same day. Im in WA and its called 'expressions of interest' where we put it in writing but its not writing up an actual formal contract. Ive never done it before.
Thanks for sharing your experience Andrew. That would be right with the banks! I have been given the 8 page special conditions that covers themselves, basically you buy 'as is'.
Hey MrsC, I’m in WA too – knew u were over west from another post of yours… is this house listed as expressions of interest then, rather than the usual offer and acceptance? that changes things…
for the standard residential sale over here, you write up an offer and its presented. But its becoming more common for different sales tactics, such as expressions of interest, set date sales, and other types where you have a certain period of time in which to make your offer. I thought in these situations the agent will list “prices above $x” or “priced from $x” or even “buyers over $x” rather than an “asking price”
I have seen examples where it is listed as “offers over $300k” and has sold for $380k.
Good luck!
No its not listed as 'expressions of interest' just straight asking price. But the agent has said they are taking written expressions/offers stating purch price, full names, finance approval terms, settlement terms etc to present to bank. I just thought it might b since its not a full contract write up. Anyways I hope to get some answers from the agent soon.
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