Hi everyone,
I've found a property I'd like to purchase for my first IP. I've got preapproval and got the solicitor to review the contract.
I've got a question on the negotiation process.
The vendor is looking for offers "over 310k". I offered 280k, knowing it was a bit low, and it was rejected, with no counter-offer. I then let it sit for a few days and made another offer over the phone for 290k, which the agent advised was still probably too low but will still pass it on to the vendor.
I realise they are looking for over a certain amount, but there should be room for negotiation right? The property has been on the market for 5 weeks, so not that long,
Should I push for the vendor to make a counter-offer? All the agent has been saying is the asking price when I have asked.
Thanks!
Hi there
To be honest – you've probably lost credibility with the agent with the initial offer. They won't see you as a serious buyer – therefore the lack of a counter offer.
There's nothing wrong with low-ball offers….but a lot of the time, this is the result.
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]
Hi Jamie,
Thanks for the response. I thought that 280k would be an appropriate offer to start with, it's only a 10% discount from the asking price and there's always room for negotiation.
I'll see what happens with this one though.
Thanks
Hi bbrumm,
When we were looking for our PPOR, I started with a low offer of 10% under the vendors minimum asking price… same as yourself. I was informed by the agent on the day that all offers MUST be presented to the owners even if they are very low. So I knew there was nothing to lose. I was informed the next morning that the offer was rejected. Luckily the agent had also told me the current owners had already put an offer on a new house but finance was subject to this house getting sold. So we had the upper hand. 2 weeks later the house was still on the market but it was the final viewing so we went in and offered 4% under the minimum asking price. The agent did everything to try and convince us it wouldn't be accepted but the next day I received a call with a counter-offer. I politely declined and remained firm with my offer. The next day we were told the house was ours.
This may not always work out but the point is, stay firm with what you believe and put on a poker face. After all it is the BUYER who decides what the house is worth, not the agent.
Cheers
Hi rumrunner,
Thanks for the advice. I guess there's no point in going over what you believe is a good price, even if the vendor doesn't. Looks like you got lucky as the vendor changed their mind!
I was told the other day that the vendor had rejected my second offer with no counter offer. I told the agent that was as high as I'd go. So I'll see how that property goes, maybe they will change their mind, but I'm out looking at others and getting ready to make other offers.
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