Aggressive offer strategy

[LJ]

Hello, my wife and I have found a property that we like and would like to make an offer. The property is listed at 420+ and we would be willing to offer 430.

The property is located in vic, and has been on the market for about a week and has 2 open inspections this weekend, sat and sun.

Chatting with another member he suggested that we go in aggressively with our offer of 430k, give them 24hrs to accept, and with no conditions on the offer. We would then have a building/pest inspection done during the cooling off period and would decline the offer if the report was bad.

I do not feel right though submitting the offer without it being subject to pest/building inspections.

TLDR; we want this house but don't want to budge from $430K, and don't want to compete. Has anyone used strategies like this to woo the agent/vendor? Any other suggestions on how to go about it?

 

[menty]

I did that in a hot Sydney market and just ended up pushing the price further up.
Not sure how it is for Melbourne.

 

[scha9799]

as you mentioned "I do not feel right though submitting the offer without it being subject to pest/building inspections."

If you don't feel right, don't do it. many more other properties elsewhere.


Hot market is very hard to buy.

 

[Logica]

....
Chatting with another member he suggested that we go in aggressively with our offer of 430k, give them 24hrs to accept, and with no conditions on the offer. We would then have a building/pest inspection done during the cooling off period and would decline the offer if the report was bad.
I do not feel right though submitting the offer without it being subject to pest/building inspections.

Is the property worth this much? If it is (to you) then this is a good way to take it off the market, which is your number one priority at this point in time.
I wouldn't put building and pest as a condition and we regularly do them during cooling off. Just speak to your inspector so he/she is on standby.
Try and make your offer on a contract and tell the selling REA that you scheduled the building inspection for Friday as long as they sign by COB Thursday.
Good luck

 

[lizzie]

But be aware - if you pull out during cooling off you will lose a few thou in penalty rates.

 

[Peter_Tersteeg]

If the agent is reluctant to agree to a B&P inspection, then you should ask them if there's something about the property that they need to tell you...

If it's a good property without and problems, the agent shouldn't have any reason to be concerned about a B&P.

 

[Big Will]

I agree it is a very standard condition but be careful on the wording.

Only offer what you are comfortable with and if you cool off you will have to pay 0.2% of the purchase price as cooling off which is just short of $1,000.

If the property is advertised 420k+ is this 10% lower than where the market price is? If you offer 430k and it should sell for 450k you will be unlikely to get the deal across with a 24 hr expiry.

Put yourself in the vendors shoes, if you had a property on the market for 2 weeks and comparable sales says you should get 450k would you sell to someone for 430k? TBH I wouldn't but the worst they can say is no and you go find another property or increase your offer or tell the agent come back to me when it doesn't sell and you might reconsider it.

 

[Macca]

If you "want" it but are only willing to pay $430k then I would simply say that !

I want it but unfortunately I can only go to $430k with a B&P, let me know within 48 hours so I can move on if I missed out, thanks.

They will probably use your offer to push others up but that is the agents job, if I was selling I would expect that.

On the other hand other people may say NO and you get it

Don't fret just do !!

 

[S.T]

Why don't you organise a B&P inspection up front? Will be less than the cooling off money required. May also give you some bargaining power if there are issues (and you still want the property). You would get one anyway - so why not upfront if you're serious?

 

[LJ]

Thank you all for your sage advice. Our pre-approval took longer than expected so we were unable to submit the offer to take the property off the market before the open houses. A family member went and said that it was very popular!

We've since learned that the vendor wants a long settlement (90-120 days) so our only hope is to submit our offer and try to include other strengths into it like a longer settlement. Maybe we will mention that we don't mind if the en suite isn't completed.

Thanks again everyone!

 

[Scott No Mates]

Maybe we will mention that we don't mind if the en suite isn't completed.

Thanks again everyone!

Why take on board a risk which will be covered by the vendor's home warranty insurance? Buying incomplete work which subsequently fails can be very hard to win if you have to take the original contractors to vcat as they will put the blame on your tradies who completed the outstanding work.

 

[cadence]

have you thought about dropping $600 on a B&P report now, and see what it says, before making an offer?

If there are issues and you dont want to proceed, you've only lost $600 which is not much in the property game.

If there are issues and you still want to proceed, you can take into account the cost of rectification/repair in revising your offer and be able to justify it to the agent.

If there are no issues, then you make the offer. I would make it expire about 24hours before the next scheduled open (which is usually a Saturday). You want to give the agent some incentive to sell your offer to the owner (it saves him the trouble of doing another open if owner accepts your offer). Once you've had B&P done and make the offer, agent is more likely to recommend it to owner, as other parties who have made offers which are subject to B&P may not follow through.

If you do the B&P, make the offer, and lose out, tough. Keep looking. Focus on the big picture than the $600 you lost.

 

[Logan]

I did this in a hot market in Sydney a few years ago, it only works if you know the market well enough to understand what the current value is running at. The house was for auction adverting a range of over $690K. This was a silly price as comparable sales were close to 750 - 800K and rising, I had failed at a few auctions and was seeing the same people turning up at all the open houses so I knew what everyone had to spend.

After 15 minutes in the house I offered 800K. The vendor accepted. I did not actually go through with the sale as I made an other on another house at the same time which was also accepted but had them both stung along until I decided on which property to purchase.

The agent was a bit upset but sold it to another punter within the same week (of it hitting the market) for $800K.

 

[cadence]

Go hard
Or
Go home