Is the agent just trying to get more money for the owner?

[fullylucky]

The property was advertised for $649,999+

I offered $600k initially. Because I know how agents always bs and say offer atleast X and hope some sucker does actually offer that and BAM!

Agent comes back with counter offer from owner at $635k

I offer $612k and told them not going to offer anything higher.

Agent calls me twice a day asking me to increase my offer, getting very close etc. lies.

He says they are 2 other offers but owner rejects them cause they are conditional on selling of their property etc.

I'm thinking if others have offered as high as I have agent would be bothering them.

The agent is pretty much calling me twice a day, he visited my house. I'm not in a rush to buy since it's just an IP. Seems the owner is in a rush to sell as I see the agent visiting the owner everyday. The agent then tells me if I don't increase my offer the owner is not going to sell as he is getting good rent from the property. Yet after this the next day the agent still calls me asking me if I have reconsidered to increase. I asked so the owner rejected my offer and he said yes. But he is contacting me often so I'm thinking the owner is really happy with the offer and is just trying to get more out of me.

Is my logic correct?

What should I do?

Just wait patiently for the owner to cave and accept?

What can I do to make the owner be happy with the deal?

Is it illegal for me to contact the owner directly and talk with them?

 

[alexlee]

Is my logic correct?

The agent works for the seller, so yes, his job is to get as high an offer out of you as possible. Though if the vendor hasn't accepted, your offer isn't enough for the vendor.

What should I do?

If you're willing to pay more, offer more, if not, stay put.

Just wait patiently for the owner to cave and accept?

You can, but running the risk that the vendor just says no.

What can I do to make the owner be happy with the deal?

Offer them what they want. More money, obviously, or maybe other terms (short / long settlement, etc).

 

[Big Will]

Orginal advertised price was 650k+, meaning the vendor was originally wanting offers above 650k.

You offered 600k, 50k less than what the vendor was hoping for.

The vendor has discounted to 635k to get the sale done (who knows why).

And you are at 615k.

What is the place worth? As in what would you value the place if you bought it for 615k.. Would you say the house is worth 615k or 650k?

Without knowing the house/value you are asking us to fire in the dark.

I would say from this sceniario is that you will have to go up.

From reading the information the house could be worth $650k (or more) and the vendor is after a quick sale and has dropped to 635k (15k below value). If you are thinking you will get it for $615k it would be highly unlikely that they will drop that low.

I have seen houses advertise $430k + and sold for $490k. With this property there was multiple offers ranging from 450k, 2 offers at 470k and a 490k.

If you are happy to lose the property to someone else who will pay 635k cause you wanted to get an even cheaper deal they stay back and see what happens. If you think it is worth 650k or more than accept the counter offer or offer something higher (maybe 625k).

I would struggle to see the vendor coming down any further than 635k thought as they were originally wanting 650k or more unless the value of comparable sales are at 600k.

Good luck

 

[fullylucky]

I have a 6th sense that the owner has not received any better offers.

And the owner is in a rush to sell as he bought else where.

I'm hesitant to increase my offer just giving money away.

Deep down I think the owner is happy with my offer. (or else the agent wouldn't be calling me and visiting both of us often.)

Is there another way to get the owner to accept. I already said I am happy with any settlement date that is convenient for the owner.

I noticed, there is a guy playing drums next door to the owner's house is it legal for me approach the drummer and pay him to play more often or is this illegal? - just kidding...

Any advice from IP investing pros? or real estate agents that can explain what the agent and the owner is thinking.

I have told the agent I have offered too high already and would consider not buying the house.

Would making my offer valid only for 7 business days do anything?

 

[Big Will]

Dont make your offer valid for 7 days, only 3 clear business days at most.

I work as a REA and I am speaking from experience that the reason why the REA is calling your offer wasnt accepted.

You have not talked about the value of the property.

I can tell you if the agent had someone walk in and say I'll pay 635k for it you will likely get one phone call saying there is another offer and then you will have to pay more.

Do what you like at the end of the day you know the full story and it is your purchase.

If you would rather play games and try and get a steal then go ahead but me reading between the lines is your offer is not acceptable and the house should be able to get 650k but the owner needs to sell for whatever reason and is willing to do 635k to accomdodate a benefical settlement date for them.

Put yourself in the vendors shoes, would you accept an offer of 615k for a place that is worth 650k?

 

[kathryn d]

Is your offer in writing?

if the place isn't too important to you..just sit tight.

 

[fullylucky]

Is your offer in writing?

if the place isn't too important to you..just sit tight.

Yes, in contract!

the owner has also signed but put $635k.

Agent says now owner will accept $630k

I have moved from $600k to 615k.

Historically no house in the street and next few streets have sold for higher than what I have offered. Other houses in the area that is closer to the bus stop/shopping have sold for less last year.

I think I gave the owner a really fair offer.

 

[alexlee]

Whether your offer is fair doesn't matter. If they don't accept, they don't accept. They don't have to be reasonable either.

If you aren't willing to offer more for this place, don't. Sit tight but know that you run the risk of the vendor not accepting. Maybe they'll get another higher offer. Maybe they'll just withdraw the listing. Maybe they'll be even more desperate in a few months and accept your lower offer. Who knows.

 

[Big Will]

Yes, in contract!

the owner has also signed but put $635k.

Agent says now owner will accept $630k

I have moved from $600k to 615k.

Historically no house in the street and next few streets have sold for higher than what I have offered. Other houses in the area that is closer to the bus stop/shopping have sold for less.

I think I gave the owner a really fair offer.

This changes my perception on perhaps the property is worth less than 650k, but still you need to work out the value of the place.

I bought a place that was 500k+ and bought it for 510k however i had it bank valued (conserveative) before purchasing and it was 530k and my own personal opinion was 550k.

 

[kathryn d]

the vendors probably have a deadline to meet, and waiting for better offers...they might be using you to fall back on.

It is currently rented.
Are you happy with the current lease contract?

 

[fullylucky]

the vendors probably have a deadline to meet, and waiting for better offers...they might be using you to fall back on.

It is currently rented.
Are you happy with the current lease contract?

But the agent seems to be very proactive in contacting me... I don't think I'm the spare tire... What do agents think? can you please give me your 2 cents on the matter?

In one conversation I said well I'm not going to increase my offer and further. I'm not in a rush to buy. Looks like we just have to wait for the owner accept. Agent said ok. Next morning still calls me.


What do you mean vendor has deadline to meet? Vendor means the owner? or agent? Why would they have a deadline?

yes it is currently rented out. If the owner accepts my offer I will keep the tenants.

 

[tobe]

if the owner came back with a signed counter offer (rather than verbally), Id keep countersigning it till I reached my end point/estimate of value.

Have you calculated what your estimate of value is?

 

[fullylucky]

if the owner came back with a signed counter offer (rather than verbally), Id keep countersigning it till I reached my end point/estimate of value.

Have you calculated what your estimate of value is?

What is estimate of value (EOV)?
What I think the property is worth? I think it's worth 615k.

What do you mean counter signing till I reach my EOV?

I'm new to this, please less jargon.

Do you mean I sign with a higher offer?

Right now on the contract it has my initial values and my changed offer with my initials and then the owners counter offer with his initials.

 

[tobe]

so if you think its worth 615, stop taking the agents calls. You have already offered your top price.

 

[Daniel121]

The property was advertised for $649,999+
Seems the owner is in a rush to sell as I see the agent visiting the owner everyday.

Do you live near to that property? If so, you should know how many potential buyers are interested.

At the end of the day, (from what I've learned from SS) whatever the asking price is irrelevant... work out your numbers, be confident when making the offer, take it if price is right or simply walk away. Chance is you may have missed another deal if you're spending too much time/energy on that one just to figure out what the agent/vendor thinks.

Good luck with your purchase!

 

[Bigtone]

the agent is working hard two get the two parties to meet up at an agreed price, that is his job and he does not get paid unless that happens.

if the vendor would accept $615k surely the agent would sign it up so he gets paid , the difference in commission on the extra $15k would be bugger all.

He knows the deal is close to being done and is trying to get it over the line.

If you don't think it is worth more than $615k don't offer anymore, if you do increase the offer and buy the thing

the reason he is talking to you both each day is he is working you up and vendor down, he would be thinking if i can get them to $622,500 each we will have a deal.

in all reality agents work for themselves and only eat when there is a deal done, he will be working the vendor as hard as he is working you.

 

[fullylucky]

Do you live near to that property? If so, you should know how many potential buyers are interested.

At the end of the day, (from what I've learned from SS) whatever the asking price is irrelevant... work out your numbers, be confident when making the offer, take it if price is right or simply walk away. Chance is you may have missed another deal if you're spending too much time/energy on that one just to figure out what the agent/vendor thinks.

Good luck with your purchase!

Hey Thanks for the advice.

Yes. I kept an eye on the open house inspections. Very poor low turn out. 3 or 4 cars. Not many people inside the house.

But the agent said he is showing many throughout the week. (weekdays I work).

I think this is just bs since open house is saturday when most people are free. if no one whos up to those who would show up to personal booked inspections.

 

[fullylucky]

if the vendor would accept $615k surely the agent would sign it up so he gets paid , the difference in commission on the extra $15k would be bugger all.

How much commission is it? does anyone know?

Can I just offer this to the agent and ask him to get vendor to sign? just kidding.

 

[kathryn d]

What do you mean vendor has deadline to meet? Vendor means the owner? or agent? Why would they have a deadline?

yes it is currently rented out. If the owner accepts my offer I will keep the tenants.

You stated in your first post, the vendor seems to be a rush to sell.

You have asked how long the tenant lease is for (5 years for example?)
You might not like that. Have they ever been in arrears?

 

[fullylucky]

You stated in your first post, the vendor seems to be a rush to sell.

You have asked how long the tenant lease is for (5 years for example?)
You might not like that. Have they ever been in arrears?

I just need to give the tenants 2 months notice (no reason) if i want them to move out.

I like the way you think! But I don't think they are in arrears.