Interesting low offer received

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:

"Offer"

"I acknowledge that your asking price is $299,000 and maybe you know something that we don't. However, from what we have inspected of the property on 06/06/09, accounting for repair costs and from what we have researched of the properties in the area, we believe that if we are to purchase through conventional methods, we would be looking around $61,140.

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.

We are open to negotiations, if you have a counter offer or would like to speak with us, please do not hesitate to email or call us through the details provided below.

Regards,


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?
 
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.
 
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.
 
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? ;)
 
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
 
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
 
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)
 
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.........
 
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?

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;)
 
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.
 
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
 
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
 
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
 
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
 
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