how much you should offer and how to get it accepted ?

Hi guys, I would like to make an offer on 2 bedr townhouse.
The real estate agent said offer more than 280k
Is it mean than offer less than 280k won't accepted ?
how much i should offer ? I am thinking to offer 235k ? is it too low ?

I am trying to call the agents 2 days ago to get some inquiry and schedule the inspection, and he said he is busy on the moment and will call me back or reply by email or text me later. ( i haven't got any reply etc until today )

I really would like to call him again but afraid i would look to eager on the property. This is an interstate property investment, so actually i really want to get fast with the inspections, offer and contract.

Is it too fast to place an offer after your first inspection ( subject to satisfactory to finance, law, building and pest inspection ) with 10% deposit and 30 days settlement ?

It is a single level townhouse 2+1+1 in a very good location. 5 mins walk to train and schools and 10 mins walk to shopping centre. 15 mins drive to cbd and 25 mins on train. I am looking for future development to add up room upstairs. ( next door was built to double storey so i think there is no problem with permit ) Currently rented 310 weekly and i would like to keep existing tenant.

This street was the most sought after street for tenants and so far only this townhouse available for sale, 400 m2 house in the same street is on sale for 370k 700m2 with permit for 4 townhouses.

My pm said this street rent out so quickly so i don't need to worry about looking for tenants ( even in over supply ) and have higher rental yield and better growth as well.

so i really interested in this property but RE agent looks disinterested and not following up at all. I am planning to get him on the phone and get the contract sale so my solicitor can look it up.

How to get this property under 250k and make sure they will accept my offer and take the property off from the market ? In the mean time, i want to look as a serious buyer but not too keen so they will have advantage over me.

Thank you very much advance.
 
Hi Vivian,

I think you may not have done much research, it sounds like you have no idea of its value. 235k vs 280k is a big difference.
If the property is a townhouse (in a strata complex) I highly doubt you would have permission to build up. Or are you talking about a torrens title (non strata) duplex? By townhouse I imagine a 2 level structure, may or may not be detached in a strata complex. But then again, I'm in NSW, you might be somewhere else.

Strange though about unresponsiveness the agent.
Anyway, you do sound too eager. There are heaps of properties out there, don't go with the thought you must buy this particular one. I think you need to learn more about properties first before buying.

Ps. Why do you want to do 10% deposit and settlement within 30 days?
Linda
 
yeah i knew it. Honestly speaking I think it will priced around 290k. Last year same townhouse in the same address 2 level 2+1+1 sold for 300k , but the one that i want is a single level. however another townhouse 3+1+1 within 1.5 km from there sold for 270k. So i was thinking to submit offer mentioning about my reason and that 270k sold property.

I want to bid under 250k because ppl suggest to make an offer under 20% assuming agent already mark up 10% from vendor's price. I was hoping to meet up around 250-255k to make up better rental yield. I think this is a bad advice ?

I want this property for its location. The houses in the street was held tightly and i don't want to wait 1 whole year for another house up for sale. its walking distance within 5 mins to train schools and 10 mins to wolis big w dan murphys etc.

Local property agent advised me to get the property in this street since its location will guarantee quick rental and better yield.

I have been painfully reading council plan, property book, property tax book, sign up courses, reading statistics, suburb profile and neighbouring suburbs but i had no idea how to make an offer and negotiate so i can win my very first IP, that's why i come up 10% deposit and 30 days settlement because it's in the article how to make your offer more attractive to sellers. Is it a bad move ?

Thank you very much
 
Btw, its local property manager that advice me to buy on the street. No - she is not from the same agency as the one who sell the IP. Her agency don't have the stock on the street that she recommended. She is a senior property manager and have experienced more than 20 years in the area. I believed that she is honest and have no conflict of interest and not trying to sell me property. I have been went around asking RE agents in the area including property manager for recommendation.
 
Hi Vivian,
2 things.
1. Find out if the property is part of a strata because if it is a strata property, I think the possibility of adding a level is most likely zero. Unless someone did the same in the complex and had that approved.

2. You need to find out the sellers motivation for selling. If it's being sold due to a divorce or an upgrader who has already purchased a replacement home or for some other reason where they want a quick settlement, by all means offer a 30 day settlement. It could make your offer more attractive. But make sure you have your finances arranged already. If the bank or lender is busy then you might struggle to get it settled that quickly.

If it's being offered by a regular homeowner or an investor just looking for capital gains then they would not care for your 30 day, low ball offer. They just want the best selling price. If this is the scenario, you either have to make a decent offer or it will be ignored.

With the 10% deposit. Don't offer it. You can keep the $$ in your own account. The vendor isn't supposed to touch that money anyway until it settles. 5% should be enough.

Finally, I thought I'd add, you need to know if the local market is hot (sellers market) or cold (buyer's market). If it's a sellers market, you need to put in an offer to beat the others if you want it badly. If it's a buyer's market with few other buyers in sight, you stand a better chance of getting it at a low price. Note if the agent is saying we have another offer on the table s/he could well be lying. But if it's a hot market, expect it to be true. My sister sold her townhouse in Castle Hill Sydney for way more than expected last year. Got 22 offers on it after the first open. Lots of keen buyers pushed the price right up. So you need to know how hot the area is right now.

Also, you say there's another property for sale on the street that can have 4 townhouses built on it. If the whole street is like this then you'll be buying into a street that potentially will have heaps of townhouses in the future. You will lose a scarcity factor, plus yours could be considered older than the others. Just a thought. Don't rush.

Cheers
 
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Ah ic.

I supposed this is buyers market. The suburb was growing with lots of old houses been sold n subdivided to townhouses. Townhouses emerged almost in every street.

The townhouse was rented so I supposed the owner would like to get good price.
I will try to ask agent why he want to sell, but mostly after I inquiry they normally said I don't know. -.-

Thank you so much for your advice. I really appreciated it.
I am having such a painful research until I checked BA service as well, but it turn out too expensive so I prefer to dismissed the idea. Better use that 12k for stamp duty n legal costs.
 
I am having such a painful research until I checked BA service as well, but it turn out too expensive so I prefer to dismissed the idea. Better use that 12k for stamp duty n legal costs.

No offence, but you seem very green about even the basics of property purchasing and investment (not confident with making offers, listening to what agents are telling you).

So I would have thought you would get better value for money from a BA service than most.
 
The worst thing they can say is no.

I feel by what you are saying that your offer of 235k is a bit under where it should be, unless the vendors are really desperate to sell but if they were why don't they just advertise 250k and get 3 offers if value is 290k?
 
yeah. This is my first IP so i am definitely green. I might try to offer in writing 250-255k and see the counter offer. Comparative valuation analysis valued it at 278k. Thinking to engage buyers agent for negotiation and house inspection only but they charge 3k only for 1 property payable whether it success or not successful. I did almost 10 inspection to rent mine so i am pretty sure 1 house inspection is not sufficient to buy a house.
 
If I can read between the lines you have purchased before.

How was that?

Can you remember what process you did as it is similar in the contract part as buying a PPOR except it just needs to make sense in $$$. I actually think IP buying is easier than PPOR.

How did you come up with the comparative valuation?
 
Residex comparative valuation. My broker run it for me for free. I bought house and land package before years ago. No negotiation at all except settlement date, price fixed. My selling agent took care all of it.

Anyway, this time i can't even get a quote, agent really not professional , not calling me back, no follow up. My first IP purchase was so painful, from IP next to cemetery, boarding house, behind high way and flyover, gunshot war street and finally i want this who tick everything, agent not responsive.
 
Try getting a friend to call the agent and pretend to be an interested buyer?

Just to gauge if his lack of interest in you is a lack of interest to everyone, or if it's just you.

If the agent shows interest in your friend, then you'll at least know he/she is actively trying to sell the property to someone, just not you
 
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