Interesting low offer received

Discussion in 'The Buying/Selling Process' started by Collector, 22nd Jun, 2009.

  1. Collector

    Collector Member

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    We received an offer today on a property near Westmead - I thought I would like to share with you.

    As you are aware the first home buyers are out in force with properties under $400k being sold in a couple of days.

    We received this communication this morning:


    This particular property was sold on 11/06/2009 for $295,000



    We have received low ball offers in the past but never have we received an offer that was 79.5% below :eek:the asking price.




    Whats the lowest offer (% of purchase price) that you have put forward and what was the result?
     
    quoll likes this.
  2. wylie

    wylie Member

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    What a pompous, insulting letter to receive. I hope you are going to tell them to "kiss my ........" :mad:.
     
  3. Propertunity

    Propertunity Real Estate Buyers Agent

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    That's "gold". :D

    Actually, it reeks of an inexperienced intending purchaser who has been to one of "those" seminars. Especially when you see the words: If you are able to finance the whole mortgage at 0% interest for 15 years, with no deposit, including paying for building and pest inspections, repairs and closing costs, then our offer is closer to $106,690."

    Logical, but totally ill-informed about the reality of the market-place.
     
  4. Rob Williams

    Rob Williams Festina Lente

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    That offer has all the hallmarks of being written by someone who has recently attended one of the many "property secrets" seminars. You know, the one's where they tell you how easy it is to buy properties well under market and how easy it is to get vendor finance.
    The real sad part about ths is that the writer of the letter has forked out a big wedge of readies to learn how to do that.
    I'm sure that if you make enough lowball offers, you will eventually get a bit, but writing the letter in this particular style isn't going to win friends or influence people.
    If I received such a letter, I'd not even bother expending energy in replying.
     
  5. Jacque

    Jacque Buyers Agent and Bookworm

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    What a hoot!!! Some people have absolutely no idea.....
     
  6. auror

    auror Member

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    Wow!! I feel a bit sad for the would-be buyer though, they clearly had no idea they were so far off the mark :(
     
  7. Ausprop

    Ausprop Member

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    "we would be looking around $61,140"

    ?? Nah definitely around $62,233
     
  8. House_Keeper

    House_Keeper Member

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    It's pathetic really.

    Looks like it's come from a US seminar.

    Who would you expect to accept 100% vendor finance at 0% interest for 15 years? ;)
     
  9. quoll

    quoll Member

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    I thought we had received a really low offer via the letter box, hand delivered, for $240k on a property listed at $320 which we sold for $305k.

    And the letter was worded a lot better than yours. Well I've adjusted my definition of a really low offer.

    Thanks for the laughs.

    Cheers
    Graeme
     
  10. Electro

    Electro Member

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    I feel sorry for the buyer - really clueless!!
     
  11. joanmc

    joanmc Member

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    I agree with Wylie ! I think if they are hoping for success they need to work on their people skills a bit! lol

    I would frame that one:D
     
  12. auror

    auror Member

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    they were also 11 days too late! how long did it take them to put the letter together after the inspection... a full 2 weeks... maybe the property seminar told them that too (don't seem too keen, wait 2 weeks before offering a ridiculously lowball amount that the agent will post on the net for everyone to laugh at)
     
  13. csc

    csc Banned

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    i would have strung this buyer along for weeks and wasted their time by building up their hopes that they found a sucker then dashing their bargain buy with a formal letter a month later.....even im not that cheeky when making an offer.........
     
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  14. GreenTreeFrog

    GreenTreeFrog Member

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    Oh my that is hilarious!
     
  15. josko

    josko BluePlanet-Green Shackles

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    And I would reply with the following letter:

    "I received your offer today and would like to submit the following proposal to you.


    If you are unable to finance the whole mortgage, then interest for 15 years, with no deposit, including paying for building and pest inspections, repairs and closing costs, would be 14.85%. (Normal bank Interest Rate - 5.5% + Mortgage Insurance 3%, + Risk Fee 5% + GST)

    As this particular property was sold on 11/06/2009 for $295,000, we feel that a sale price of $350,000 is now a fair asking price. Considering the extremely high risk we take in funding this property for you, we feel that our asking price and interest rate is more than reasonable.

    This offer is not open to negotiation."


    Regards JO;)
     
  16. Alabex

    Alabex Member

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    had a few like this.... but never quite that low.... they are usually the ones who dont call to speak with you before putting in their offer also... it is just received out of the blue usually by email.
     
  17. Andrew L

    Andrew L Chasing Dreams

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    How does a person in all honesty believe someone would actually take it......

    I've seen some courses that aren't exactly believable but those terms are insane.

    Can we maybe find out what course he attended and rubbish them to death :D
     
  18. grossreal

    grossreal Member

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    hi all
    I think alot of people are way off the mark
    just because a person makes an offer does not mean you have to accept and from reding the offer it is from a us investor in my opinion
    and can you offer and buy in this way the answer is yes
    so yes it is not a way we do it here currently but that doesn't mean this person is silly or anything
    they have made an offer very low yes
    and not sure about the 15 years 0% but are you silly for making that offer.
    for me no why
    because we are doing the same
    just we are gettng the acceptances
    so 20 or 30% of value yes.
    50% on commercial yes
    and thats in the US and here
    as for people skills never been good on those
    so not sure about them
    we don't have the volume that they do so low balls here are seen as a slap in the face
    for me its a case of forget it or run with it.
    just my view of it
    from a different point of view
     
  19. marg4000

    marg4000 Member

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    I reckon you should frame it.

    And their maths is dodgy too, after allowing for YOU paying the inspections and giving them interest free finance for 15 years I reckon the offer is closer to $0.

    How can YOU paying THEM increase the value of their offer??

    Thanks for the laugh.
    Marg
     
  20. Kristine..

    Kristine.. Broker and Raconteur

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    Hi Collector

    Yes, the reference to 'closing costs' is reminiscent of www.creonline.com.au - it's a wonder your would-be purchaser didn't refer to the property being 'in escrow' as well!

    Anyway, top marks to them for trying

    When I worked for Burbank Homes and was selling a major development at Maribyrnong, the property seminar market was in full cry. The apartments were in the high $300,000s and people would walk in to the display suite and say 'how much discount for bulk buy's?' and 'we are going to flip the properties before settlement' and 'oh, we will offer $200,000 for the penthouse' and all sorts of other nonsense.

    It was fun, too, but a huge waste of time, theirs included.

    Congratulations on your sale of $295,000, the discounting rate from advertised price to actual sale of 1.33% is a great result!

    Cheers
    Kristine