Hi guys,
I am in need of some help with my current situation.
I have come across a residential property on the central coast of nsw.It needs significant renovations and so once I went through the property it was obvious that the 300k selling price would need to be lowered.
I came to 270k as an offer and vendor cam to 290k. I then got a P&B and was ready to go unconditional with an offer of 285k but the P&B had structural elements which needed to be taken into account, so I had to come back and offered 265k and then went to 275k and that it my absolute limit.
Not many people are interested as its a lot of work and both cosmetic, structural and landscaping needs attention.
I need a create way to put another offer to the vendor.
I’m interested as to what other peoples minds can think off cause I’m fresh out of how to get this deal across the line before someone else beats me by 5k or something.Looking forward to the help.
Kind Regards,
Hi HealthIsWealth
Perhaps consider submitting two different offers at once. It often leads to the vendor forgetting that they can decline both, and rather feel as though they must choose between the two.
The two offers could differ on price, settlement duration, deposit size, terms, early access for works etc.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I like Jacqui’s idea.
And after you’ve submitted them, walk away. Don’t keep going back otherwise the agent/vendor knows they can just keep milking you.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
275k Is my limit.
I need something that will work for both parties that doesn’t involve simply putting more money down,
that’s not very creativeGenerally the vendors aren’t looking for creative – they will want more money.
So you realistically need to remember that the vendors and agent will know an eager buying party = will pay more. If not they’ll string you along until someone else will.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
I agree with the other comments already made.
When making your offer explain why it is what it is. List the recent sales and provide full costings/quotes of all repairs required to bring this home up to the standard of those sold houses. Working back from the end market value will demonstrate that you’re not being unreasonable with your offer.
This process will also create doubt in the vendors mind that their house won’t sell because other potential purchasers will also find about the issues that you’ve found.
Put an expiry time on your offer and be willing to walk away – the next great deal is just around the corner!
Let us know how you go!
Thanks guys,
Yes already attached parts of P&B demonstrating structural issues immediately after receiving report back, whole property needs to be gutted anyway so vendors are aware of the condition of property.
275k is my limit, there will be no milking of me haha.
Vendor is also keen for quick settlement but wont budge on price.Looks like ill just have to use the skill of patience
You have not mentioned any other details of the offer so I am assuming here, but you could offer to increase the deposit (and perhaps release it immediately) and shorten the settlement. When you said you were prepared to go unconditional, I assume that means that your offer is not subject to finance or any other terms so perhaps a reminder to the agent that if they wait for someone else’s offer, it will most likely be subject to finance and therefore a bank valuation which is always risky with a property requiring so much work. Best of luck!
Maybe offer him full price for a 3 month settlement (or $275k for 14 days, or whatever short timeframe works).
If he has a mortgage, he might find the extra 3 months will cost him the difference anyway – you, meantime, have an extra 3 months to work on finding the extra bit. If the area is growing, the equity gain could offset any extra you might need to pay.
Benny
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