Advice on first PPOR?

[sk280]

OK, Experts please help with this decision.

Buying our first PPOR after 3+ months of lost weekends, losing our dream home once, we have come across this Townhouse in Sydney, West - In a great location within 5 minutes of this major station.

This townhouse (5 yrs old) is built with lot of care and oozes style. However, I know for a fact this vendor wants an outrageous price, has changed agents and the new agent has listed the property with a price-range of 60K!!

After doing the sums, it is obvious that with just 40K more, a decent house with at least 600msq land could be had in this suburb.

Our first offer of 10K over the asking price of the starting price range has been rejected with the agent informing that the vendor is expecting 50K more.

I have decided not to make a counter offer yet and am looking for a strategy to negotiate as I know the vendor would never get the price he is looking for.

Please help.

 

[alexlee]

Have a maximum price you're willing to pay for the property. Work your offers up to that, and if they refuse, leave your name, number and the amount and walk away.

There are always other properties. A house only becomes a home after you start living in it. A house you miss out on buying (for whatever reason) is never a home.
Alex

 

[Aimjoy]

I have decided not to make a counter offer yet and am looking for a strategy to negotiate as I know the vendor would never get the price he is looking for.

This is your best strategy....walk away.....and keep walking and unless they chase you down then you just saved yourself a lot of hard work for nothing. Sounds like the vendor needs a reality check and you don't have the time to wait until he gets an education. Plenty more to look at mate!

Aimjoy

 

[Angelo]

Hi sk280

I wouldn’t be in too much of a rush to buy a place. As previously mentioned set your maximum price that you’re willing to spend up to and pay no more. The question is then, how have you decided what your maximum price will be and what will it be based on. Are you looking at comparables to give you some guidance?

I just got off the phone with 2 agents today that both told me that their vendors were dreaming when it came to how much they were expecting. It’s the market that decides what a house is worth, not a vendors dreams. If you put your offer in and don’t get it, GOOD JOB! It probably means that you haven’t overpaid for the property and you’re in a better position to buy the second house.

All the best

 

[Jacque]

OK, Experts please help with this decision.

Buying our first PPOR after 3+ months of lost weekends, losing our dream home once, we have come across this Townhouse in Sydney, West - In a great location within 5 minutes of this major station.

This townhouse (5 yrs old) is built with lot of care and oozes style. However, I know for a fact this vendor wants an outrageous price, has changed agents and the new agent has listed the property with a price-range of 60K!!

After doing the sums, it is obvious that with just 40K more, a decent house with at least 600msq land could be had in this suburb.

Our first offer of 10K over the asking price of the starting price range has been rejected with the agent informing that the vendor is expecting 50K more.

I have decided not to make a counter offer yet and am looking for a strategy to negotiate as I know the vendor would never get the price he is looking for.

Please help.

What area are you looking in? Give us some details and maybe some of us can help you with recent sale prices and our experiences of the particular suburb at least

3+ mths of lost weekends is frustrating, and it sounds to me as though you're reaching the point where you may well pay more than you need to, due to your emotions and levels of tiredness, signs well recognised by more experienced real estate agents

Take a deep breath, take a weekend off, set your limits, know recent sales and use them to justify in writing your best offers to agents, have everything ready in place to buy within a few days (finance, searches, fast conveyancer/solicitor etc), as it puts you in the strongest buying position and, above all, remain level-headed. There will always be another property- if not this week, then maybe the next or the following month.
Western Sydney has lots of bargains at the moment, and there is no boom happening in most parts, as I'm sure others here will concur. Great timing to pick up something for a good price, and reap the benefits over the longer term.

Be aware, too, that if buying into a complex, strata fees can and do vary enormously so make sure you get a strata search and check out the OC thoroughly as well.

As far as the next step in negotiating goes, its up to you to find out the vendor's reason for selling- it sounds to me from the information given that he's in no hurry to sell, however, especially if it's with the 2nd agent, but you never know circumstances until you ask.
Has he bought elsewhere?
Why is he asking the price he is?
What comps is the agent using to justify the vendor's bottom price? (Ask for specific examples and check them out yourself to see if they're DIRECTLY comparable and not superior properties)
What will the vendor take today if you're willing to sign a contract now with a cooling off/in a few days, with a 66sW?
What settlement period is the vendor looking for? (Can you help out by offering a longer or shorter s'ment as a sweetener on price?)

Above all, being ready to buy and financed can make a difference to price, depending on vendor motivation. I just secured a property for a client at what I considered rock-bottom price for this particular area because my clients could do a 4wk settlement and were ready to sign with a 66sW (waiving cooling off rights) within 4-5 days of price acceptance. It pays to have all your ducks lined up ready to proceed.

Best of luck with it all and if it gets too much for you, there's always the option of enlisting the help of an independent buyers agent who can do the searching and negotiation on your behalf.

Keep us posted of your progress and sleep in this Saturday!!