Countering a Final Offer

[P'cisT]

We've been back and forth with the vendors trying to agree on a price, and they've come back with a final offer. Theres about $8k difference with our previous offer and it's acceptable, but to us, that is still a significant sum.

Can we counter their final offer? Or is it acceptable in other words. I guess it is possible we could lose the offer altogether?

 

[Jamie M]

Hiya

You can - but you've identified the risk, they might pull out of the deal all together.

If there's an $8k difference and you think it's acceptable - than I'd be going for it. You don't want to be kicking yourself over $8k a few years from now.

Cheers

Jamie

 

[P'cisT]

Thanks Jamie. It's acceptable but it's money that could be towards stamp duty etc. The seller has no other interested parties. We are still undecided.

 

[Big Will]

It is up to you and is all part of negotiation and the joys of the dance.

Are they willing to walk away for the 8k?
Are you willing to walk away for the 8k?

He who has the biggest balls and willing to walk away will win, however you may lose the house if it is ticking all your boxes and they might lose you as a buyer.

You can always counter a final offer but it might be that they are sick and tired of the back and forth and/or it could be the price as it might be a mind thing. e.g. 492k vs 500k is only 8k but it sounds a lot better to a vendor's mind having 5 in it.

The $8,000 at 80% lvr is an additional $1,600 out of your pocket today.

 

[kathryn d]

For us, it wasn't always about price...it was the conditions.

Do you have a certain condition you would like...such as a closing date?

 

[tobe]

what she said^^^

another 3 or 6 months settlement with early access to complete renovations might be a win for both of you.

 

[neK]

Can't tell you what to do, but i will share my experience.

My wife insists that i paid $10k too much (and in reality i did - I eventually was able to coax the agent into telling me what the bid below me was).

I got lucky with timing and 2 months later a property a few houses down sold for 42% more than what i paid for mine.

Did i feel I was overpaying at the time? Yes. But the $10k was acceptable and I took the plunge. If i didn't I would be kicking myself many times over. I'm sure the guy who offered $10k less than me is

 

[Big Will]

Can't tell you what to do, but i will share my experience.

My wife insists that i paid $10k too much (and in reality i did - I eventually was able to coax the agent into telling me what the bid below me was).

I got lucky with timing and 2 months later a property a few houses down sold for 42% more than what i paid for mine.

Did i feel I was overpaying at the time? Yes. But the $10k was acceptable and I took the plunge. If i didn't I would be kicking myself many times over. I'm sure the guy who offered $10k less than me is

People always talk about the property they should of bought when they just missed out and how much it has increased.

 

[perthguy]

People always talk about the property they should of bought when they just missed out and how much it has increased.

I think the point might be that some people always feel like they are overpaying at the time. My brother was annoyed with me when I bought in Heidelberg Heights because I "overpaid". Bought at $385,000 and just got it valued at $520,000. Now for some egg on my face My investment partner wanted to go up to $465,000 for a Cloverdale property and I thought that was overpriced. I did not want to go above $460,000. However, I relucatantly gave in and we picked up the property for $465,000 in Nov 2011. Bank just valued it at $725,000, so that $5k ended up being nothing at all. At the time I felt we paid more than what we should have. I was wrong.

 

[danwatto]

We've been back and forth with the vendors trying to agree on a price, and they've come back with a final offer. Theres about $8k difference with our previous offer and it's acceptable, but to us, that is still a significant sum.

Can we counter their final offer? Or is it acceptable in other words. I guess it is possible we could lose the offer altogether?

What's the downside if you don't get it?

Is it an IP or PPOR?

If you're able to line up more than one to be offering on, why not push the others harder while trying to work these guys down slowly? If someone else takes it, it doesn't matter if you've got other options...

 

[Scott No Mates]

If you have the stomach and are prepared to walk away tell them that is your maximum offer (or give them another crumb or two).

Running into Xmas there will be no other punters.

If it's still on the market post Christmas then have another lowball bite of the cherry (through an intermediary).

 

[neK]

I think the point might be that some people always feel like they are overpaying at the time. My brother was annoyed with me when I bought in Heidelberg Heights because I "overpaid". Bought at $385,000 and just got it valued at $520,000. Now for some egg on my face My investment partner wanted to go up to $465,000 for a Cloverdale property and I thought that was overpriced. I did not want to go above $460,000. However, I relucatantly gave in and we picked up the property for $465,000 in Nov 2011. Bank just valued it at $725,000, so that $5k ended up being nothing at all. At the time I felt we paid more than what we should have. I was wrong.

No, you paid $460k for the place and $5k as a insurance premium to ensure you would be able to secure it.

 

[perthguy]

No, you paid $460k for the place and $5k as a insurance premium to ensure you would be able to secure it.

Cheap insurance...