... a unit ... came on the market at the price of $290,000 plus... the VENDOR has now put (the advertised price) up to $339,950.
Hello Janine
Welcome to the Forum
What has your due diligence told you that the property would realistically be worth in the current market conditions?
What other properties have you inspected over the past three months and what have they sold for?
You have said that you would not offer more than $290,000. Why not? What information do you base this arbitrary price on?
What is your interest in the property? As an investment, as a principal place of residence, as a renovation project, for a relative to live in, etc?
If you have been 'keeping an eye' on the market then you would know that different estate agencies favour different types of marketing styles, and vendors generally choose the agent which best reflects their own approach
The Agency has initially advertised the property at $290,000+. It is now advertised at $339,950. These are two distinct styles of marketing. This would indicate that the Vendor has instructed that Agent to advertise the price the Vendor wants to achieve.
What is the discounting margin for the post code? If the property is advertised at $339,950 and if the post code has a discount margin of 5% then the Vendor could expect to achieve eg about $323,000
When we are vendors, we are adamant that we won't sell for less than $x
When we are buyers, we are adamant that we won't buy for less than $y
Neither of these attitudes will bring home the bacon. The vendor can only sell to a willing but not anxious buyer and a buyer can only buy from a willing but not anxious vendor
If either party is not really interested or intractable on some imagined price or condition of sale then a lot of dust can be kicked up but nothing will actually happen.
If you are willing but not anxious to buy, then you must be prepared to do a bit more due diligence than 'standing your ground' and getting upset at marketing techniques
The property is not for sale 'to you'. The property is For Sale on the open market.
Good luck, but if you want to be successful then make sure that you are properly informed and enter negotiations in a respectful and businesslike manner. You may recall that the original advertised price was a price indication, not a specific amount, so if you start negotiations with an offer of $290,000 you may need to be prepared to go to quite a bit above this, and if any other buyers throw their hat in the ring, to top their offers as well.
And equally, the vendor is not obliged to accept any price at all. With the market as generally lack lustre as it is now, many vendors may test out the market for a set time but if there are no tempting offers, decide to withdraw the listing and try again in six months time when the market may be more robust.
So it all comes down to whether you are genuinely interested in buying the property or not. If you are, then go for it. Historically, there may never be a cheaper time to buy than now.
Hope this helps
Kristine
