Hi All,
I have seen a prop asking 529k for a fibro house on 600 sqm land. it is deceased estate and I initially offered 480k was not accepted and I have increased my offer to 490k and left it there for 2 weeks.
they have not accepted the offer and even as I live locally there has been not much interest at all in the prop in open houses. now its almost a month it been on market.
any idea/suggession on how I could close the deal, they are asking for 510k and that what owners want.
i think 490 to 495k is a fair price and also bcoz there is no one else interest on it.
I personally would not buy it a 510k though.
investhut
If you would not buy it at $510k, then don't buy it for $510k. If the property is only worth $490k and that is what your offer is, then they will not find a buyer at $510k and so after a few months they will need to lower the price to the market value, which sounds like $490k. When they do this you will be able to buy it!!
But getting the seller to realise that their house is worth $490k when they think it is worth $510k is pretty hard. I was in the market at the beinning of last year and a house I was interested in was on the market for $530k. I believed that the house was worth $460-470k and so offered $455k. They told me where to go and that there was no way they would accept only $455k because their house was worth $530k at least. Fast forward 14 months and the house is still on the market with the price reduced to $510k and with the third real estate agent trying to sel it, and I can't see anyone paying that much for the house.
So you could wait and see, and after a month or so resubmit your offer and hopefully the owners will realise that their patch of dirt is no different top anyone elses patch of dirt and they can't sell at a premium. Or you could try some negotiation, like offereing a short or long settlement. If it a deceased estate then I doubt the family will want to sit on the property for too long so hopefully within a month or two you will have a chance of buying it at your price.
Cheers,
LukeCreate scarcity with an offer might be an idea.
Increase or keep the same but explain your reasoning and that you aren’t prepared to pay more at the moment, have an expiry on the offer in written format and let them worry about it from there. This is assuming you are prepared to walk away or have someone else buy the property which is a risk you would be taking, if it’s a property that is fantastic for you there’s a solid argument for just doing what is necessary to secure it.
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