Help with counter offer

D

dodo

To all the lovely forumites in the know I need some advice.

Situation: we have found a house that we like (not love) and has been on the market for 7 monnths. The vendors started at $499,000.00 and dropped it a couple of months ago to $469,000.00. I offered $429,000.00 yesterday and the agent came back saying that are looking at mid $400's and said they said $465,000.00 and asked if I wanted to make a counter offer. I said no. The agent also said Im the first to make an offer, they are motivated because there retirement villa is ready. They have an open house on saturday and the agent also stated that another interested party is looking on saturday and maybe wait until then.
Now we are prepared to pay up to $450,000.00 but would love it cheaper. Do I ring today and offer more or do I sit on it and wait til saturday.
Awaiting advice on what some would do.
 
Hi Dodo,

personally I wouldn't make a counter offer, I would just say that the current offer is only valid for a further 7 days as you are looking at other properties in the area & may be making offers on them... rather than having the agent putting some urgency on your behalf, you pass it back to agent... from what you mentioned it doesn't look like they will be receiving any offers all that soon (especially since you offer was the first in 7 months) & as they have other committments, they may reconsider your offer...

If I was in your shoes & the 7 days of your offer expires & they say no & the agent calls u back, say that you have reconsidered ur offer & drop it to $420,000

Cheers,

Manny.
 
This is a common tactic agents love to deploy. If its been on the market for 7 months! did you ask them why??. Why all of sudden has another buyer shown interest to make an offer? Something doesnt smell right. This agent is obviously trying to push up the price by introducing some other imaginery buyer that you cant see. 1. I would personally stick to 425k. 2. Do a building inspection, if all ok, write a 5% cheque have it waved in front of the agents eyes, make them look like you're a real deal. Maybe request from the agent to see an offer in writing from the other buyer? Show no emotion and tell him its for an investment purpose. Apply some pressure by telling the agent that you've made an offer on another property and the first agent to call back you'll take.

Good luck!
:D
 
manny said:
Hi Dodo,

If I was in your shoes & the 7 days of your offer expires & they say no & the agent calls u back, say that you have reconsidered ur offer & drop it to $420,000


Manny.
Click to expand...

Forgot about that one! One of my favs! :D
 
Counter Offer

dodo said:
To all the lovely forumites in the know I need some advice.

Situation: we have found a house that we like (not love) and has been on the market for 7 monnths. The vendors started at $499,000.00 and dropped it a couple of months ago to $469,000.00. I offered $429,000.00 yesterday and the agent came back saying that are looking at mid $400's and said they said $465,000.00 and asked if I wanted to make a counter offer. I said no. The agent also said Im the first to make an offer, they are motivated because there retirement villa is ready. They have an open house on saturday and the agent also stated that another interested party is looking on saturday and maybe wait until then.
Now we are prepared to pay up to $450,000.00 but would love it cheaper. Do I ring today and offer more or do I sit on it and wait til saturday.
Awaiting advice on what some would do.
Click to expand...

Tell the Agent you are going to make an offer on Saturday after the open. When you make your offer ask if there are any competing offers. Place a clause Confidentiality Clause into the Contract so it's existence can only be disclosed to the Owner or the Owners Solicitor. You do not weant the agent to shop it around to other buyers. if there are no other buyers offer 440K and wait for the counter signature.
 
thank you to all that responded :)

Will the agent still think I am interested even though I said I wouldnt be making a counter offer?
 
Stick to your figure and negotiate hard and smart. Can also add something like
"In this current market condition, I'm giving them a reasonable offer. If market sentiment keeps dropping even further, I will have to re-evalutae my prior offer to 425k"

The golden rule of negotiation is "Once you have made an offer - he who speaks next - loses" So make your offer and dont budge.

Remember, writing a cheque and having a offer in writing carries lots of weight.

Go for it!
:D
 
Gday dodo,

so your bluffing the agent and maybe he s bluffing you ?

The first person to talk looses.

I wonder what would happen if you offered what you are prepared to pay ?

Regards mitch
 
dodo,

Porsha hit the nail on the head.

Make your low offer with a time limit.

Ask to see proof of other offers.

If you really want it, write a 5-10% deposit cheque out on the RE desk in front of him.

And the confidentiality agreement was a great one by Garth.

btw...The way i look at it youre not supposed to love or even like IPs, you love/like/dislike the number$ only......but thats just me. Good Luck.
 
Hi dodo

Whats the acyula market value ?

Have you esatblished that using residex or similar ?

One of my clients bought a place In epping recently for 50 k or so below real value simply because the vendor wanted OUT. Client was happy with the price they offered because they knew the real market from things like Residex

ta

rolf
 
Some seem to be overlooking the obvious.

It was overpriced at the start and now its on the market, the fact you can not get 10's of thousands off the now posibly correct market price is the risk you take in getting your home or not. Gamblers say it best "be prepared to lose"

Pay what you are comfortable paying for the property, be careful of too many cooks spoiling your broth.

btw I hate when "agents" start talking of other people interested, if they are (and they often are when the correct market price is reached) then I just shut up and let the property do the talking. If you hang back and miss it because there really is another buyer out there then so be it, he who hesitates is lost.
 
Dodo,

I'd turn up at the open.
See if the agent actually has their act together.
Tell them you'll want a building inspection.
(Don't let the agent organize it though, tell them you'll do it & it'll
be a condition in the offer)
Pick on everything, show them why its not worth it.
Tell them about the property down the street that just went
30% under market.
Ask the agent what other investment properties they have??
Find out more about the Retirement Villa & the Vendors timing??
This may give you an idea of what money the Vendors need &
when they need it.
Remember that deal turnover is critical for any agent & when push comes
to shove they'll crunch the vendor to try and accept your offer if they
know it's the final offer.(If you can "indirectly" try & find out how long
the Agents authority is for, once its up you can negotiate direct,
not ethical but possible & the agent usually tries to make the sale
befor the end of the authority period??)


Justin
 
I agree with Juzz. You could go to the open house just to have a chat and let the agent know you're interested enough in the house to have a closer look. Never mention a price, but talk about everything else. If the agent presses, then have an answer. Porscha's line on "the current offer" is a good line. Practice it a few times and enjoy the agent's look on his face when you say it to him/her/it. Oh...and bring your chequebook too.

Geez, some of the people on this forum are just ruthless. :) :) :)

Jireh
 
No not really, there are many good and ethical members here but obviously a real estate agents viewpoint or help is not wanted. I have tried to value add here but its clear my values and ethics differ from some. Painting all agents with the same brush is easy to do, its easier than accepting many are doing a great job and know who they are working for. I am not grandstanding here and in fact had already decided not to be involved here but felt your enquiry if left unanswered looked like I had skulked away.

Regards to all and I wish you well in your investments.

Remember that life is a circle, it takes a while to come around but it will given time and father time never stops. Treat each other as you would like to be treated, its that simple. I don't care how low the ethics of the world become and they are indeed at a all time low, but keeping yourself above that is the key.
 
Ive had a potential buyer use a stitched up inspection report to try to force my price down. I had to get another report (done by agents friend). My report organised by the agent painted a rosey picture of the property i was selling. It sold to the next buyer on the reports basis.

A true and fair report wouldve probably been more similar to mine.

It goes both ways David. Except Id rather the building inspector doing the report was paid for by myself rather then the opposition side (vendor or buyer) in the haggle game.

Here we go ethics.........The most un ethical people ive seen in Real estate are the agents (not saying all are unethical)..its just that the public has caught on in the last few years to the "games" that get played.
 
REAs Agendas

Hi all,
I read this book by Mr Jennman, I think it was called "Real Estate Mistackes" or something similar. Say what you want about Mr Jennman, I got a lot of value out of his book. One segment was dedicated to 'evaluating' your REA into good or bad. Some might think it a bit 'black'n'white' but it is non-the-less good info.
Thru this book I did my market research using (punn intended) the bad REAs and getting a feel in a new market. These would expose their employers (vendors) weaknesses abd give me a heads up on what extra leverage I had.
From the initial post, I'd bed inclined to label that REA as a bad one, giving away the owners weaknesses to be exploited by you and any other buyer. So tarring ALL REAs with the same brush is quite unnecessary and erroneous to say the least! If, and I'm reffering to David here, you behave in an honourable way towards the vendor and the purchaser, then, David, why would you take these comments personal? Opinions are like belly-buttons (I read just the other day), if you can ignor them they go away!

Comming back to the post, Dodo, there is a lot of good advice here. I have picked up a few pointers that I will file away in my memeory banks. Take what you like and God bless!
I wish you all well.
 
Here we go ethics.........The most un ethical people ive seen in Real estate are the agents (not saying all are unethical)..its just that the public has caught on in the last few years to the "games" that get played.

Agree.

[/QUOTE]
 
calvin@34 said:
Hi all,
I read this book by Mr Jennman, I think it was called "Real Estate Mistackes" or something similar. Say what you want about Mr Jennman, I got a lot of value out of his book. One segment was dedicated to 'evaluating' your REA into good or bad. Some might think it a bit 'black'n'white' but it is non-the-less good info.
Thru this book I did my market research using (punn intended) the bad REAs and getting a feel in a new market. These would expose their employers (vendors) weaknesses abd give me a heads up on what extra leverage I had.
From the initial post, I'd bed inclined to label that REA as a bad one, giving away the owners weaknesses to be exploited by you and any other buyer. So tarring ALL REAs with the same brush is quite unnecessary and erroneous to say the least! If, and I'm reffering to David here, you behave in an honourable way towards the vendor and the purchaser, then, David, why would you take these comments personal? Opinions are like belly-buttons (I read just the other day), if you can ignor them they go away!

Comming back to the post, Dodo, there is a lot of good advice here. I have picked up a few pointers that I will file away in my memeory banks. Take what you like and God bless!
I wish you all well.
Click to expand...


The book is called "Real Estate Mistakes".

The book was an eye opener for me on the practices of some real estate agents. Well worth reading. Reading the book enabled me to avoid making expensive mistakes when attempting to sell a property.

Cheers,
 
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