I have been looking at a property in a regional centre asking for $289,000. The agent told me it was originally advertised by a different agent at 310,000+. My agreed strategy (what we figured we wanted independent of looking at this property) would mean that I would be potentially prepared to offer $250,000 max, more because of the strategy idea than the property value.
My question is, should I actually offer $250K or is this an insulting bid? The agent did find me a property that was within what I suggested I wanted… I'd rather keep him as an ally if possible. Perhaps I should simply suggest I would be interested in the property at 250K rather than offer?
How low are you expected to offer?
Lots of people have looked but no responses! Please let me make this more general to make it a worthy topic
How low do you go?
Do they expect you to offer less than the asking price?
Is this part of the negotiating process?
Is there a level which will be taken as an insult?
Or do they usually ask much lower than they actually expect to suck in people like me?
It depends on the vendor's needs
Which is probably one of the most crucial piece of information you want to gather before make an offer
I think it's Brendan Kelly that stated: "Be flexible on price or terms but not both"
There is nothing as an insulting bid. Buying is an understanding between the seller and a willing buyer. Just let him know your offer and who knows you might come to an understanding.
How small is the town? Does the agent with the listing have quite a few of the listings in the town?
My immediate thought was "you have nothing to lose" – but with small towns, there may only be a handful of agents so you don't want to jeopardise your creditability and come across as a tire kicker.
What's the vendors motivation for selling?
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]
There is nothing wrong with putting in a low offer – however there are some strategies you can employ to better your chances.
1. Get your hands on recent sales that will help your case and a reason why you are putting in that offer.
2. Building defects. If you have an eye for defects then point them out. For example, termite damage, structural building issues, etc.
At the end of the day – if the seller doesn't want to sell below a certain price then there is so much you can do however certainly try doing the above.
Regards
Shahin
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
Thankyou for your responses. I think I am not ready after all to go ahead and put an offer on… there are still things I need to sort out.
However, this question will pop up again I am sure when I am ready, in a different house I suppose… hopefully in a few weeks time for me… so it isn't redundant…
The town is very large and has many real estate agents. The agent however is one of the smallest in town so it seems and I'm not sure what impact that has but it occurs to me that a smaller agent may well be a good property manager assuming the fees are good and so on.
The vendors are a couple looking to sell and purchase a larger home. So I suppose they are in a good position just to wait for a better offer.
Give it a shot – you have nothing to lose.
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]
There is no harm in trying to put in a low offer. What is there to lose? The agent will want to make a sale, no one is going to think less of you for trying to save money and what do you gain a bargain property
. Last year I saw a property for sale that was close to being cash flow positive which is what i obviously what i aim to get. I didn't have enough money even close to a depoist and i didn't want to use equity so i offered 24,500k less which i could afford. Agent called me back 40 minutes later with a counter bid at 22,000k less than asking. Put the low offer in, agents get paid to sell property not judge.Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
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