How do we know

[mystery]

Elke - Before even getting close to putting in an offer ... learn the market you want to buy in. Know what properties have been selling for and develop a good feel for the fair market price in your chosen area. I can't stress this enough ... it's gives you confidence in dealing with the real estate agents. You are being bluffed because you don't know enough about what you are attempting to buy.

I just don't get emotionally attached to any property, I never have ... it's just a way of making money even if it's a PPOR..... seriously you have to be detached when negotiating. I have walked away from many deals due to your scenario. I will monitor an area for months before putting in offers .... I know to within a couple of thousand dollars what a property is worth. It takes time and patience, but will save you many thousands of dollars over time having this knowledge.

I set my price beforehand and that is it ..... The numbers have to stack up. As cu@thetop said ... if the agent plays the "we have a better offer" card then I walk away ... I will not be played into paying above my price.

It may not feel like it right now, but if you want this property go back with what you believe is a fair price ... If you miss out then so be it .... trust me .... another great property and brilliant deal is only a day away.

Good luck

Mystery

PS ... I have been buying property since 1978

 

[Elke]

What sanj said. The problem doesn't appear to be one of strategy, but of you not having clear enough objectives regarding what you want.

You can't have 100% certainty of securing the property plus lowest price plus escape conditions.

You have to decide how you weigh all these things by having clear answers to these questions:

* at what price would I rather let the property go than pay that much?
* do I need the escape clauses? If essential (e.g. risk of being unable to complete if not met), then be aware you can't have the property for bottom $. If not essential, how much more would you be willing to pay to have them rather than not have them?

Hi there approx what do we have to pay to have an extra clause put in a contract?

 

[Elke]

Yes we have been researching for months and this one with reno's factored in plus the extra 10k still represents solid value compared to others in the area. It's also worst house best street but if done up would be good. Plus from family point of view it is bigger than some we have seen that were a lot more.

Ta

 

[Perp]

Hi there approx what do we have to pay to have an extra clause put in a contract?

I don't mean literally that you pay for the clause; I'm simply pointing out that a conditional contract is not as valuable to the vendor as an unconditional contract, so all other things being equal, a vendor may accept, say, $600K for an unconditional contract, but if the buyer wants to attach conditions, it'll have to be more attractive, maybe $610K, or $620K.

 

[willair]

What I did is to offer 10k less to the seller on your behalf, bec you are good people, and she accepted.'

Huh??

In 15-20 years you will look back and think about what's just happened,,
and by then learn to say just let the other person have the property that's my offer thankyou for your time have a good life,RE's play the Russian Roulette game each day of their working life with all blanks in the chamber every time I have ever asked about any property that is always the first blank they fire and the system that is in place covers them 100%..

 

[The Y-man]

haha roe- reminds me of when I took my mum car shopping. I said don't commit etc. Just give me the nod if you like it and I'll do the talking.

We went to the car yard, she got in a car, jumped out and asked the price and said "I love it, I'll take it".

My mum was worse. We bought her along to the open when looking for our PPOR.

The agent was very clever- we were poker faced, but he asked my mum what she thought of the place, and she said "This place is wonderful. Best place we've seen all day by far. I think they should buy it."



The Y-man

 

[ZachAnSel]

Yes we have been researching for months and this one with reno's factored in plus the extra 10k still represents solid value compared to others in the area. It's also worst house best street but if done up would be good. Plus from family point of view it is bigger than some we have seen that were a lot more.

Ta

Hi Eike,

My method for this, my wife and I pretend we didn't know each other. Both attend inspection normally, but make sure agent don't know. You can ask brother/sister for help if you need

My wife put a contract for $ X price with sunset clause, and agent comment there is another offer in the table. My wife reply no worries, when the sunset is almost offer, we re-ask if there other offer still valid?
Agent usually reply yes, and even higher. Well my wife pull out the offer from the table.
If agent say come and hand over your deposit, you know there isn't other offer.

Two/three days after, I just put lower offer with two days to think about.

Not guarantee this will work everytime, but if the agent present all offer to the vendor. This will make vendor think twice..

Ps: if you practice this method many times, sometimes you feel "damn, I should put lower offer before". Well at least that what I feel..But we ready to pay on X price anyway