Low ball offers
- Thread starter de nero
- Start date
Here are a few to start you off:
Subject to finance
Subject to building inspection
Subject to pest inspection
Subject to agreement on the offer by a certain deadline
Subject to exchange by a certain deadline
Subject on sale of another property
Subject to a cooling off period of X days
Of course, as Asy sez, the offer process does vary by state, which does affect how this is structured.
Cheers,
Aceyducey
Subject to finance
Subject to building inspection
Subject to pest inspection
Subject to agreement on the offer by a certain deadline
Subject to exchange by a certain deadline
Subject on sale of another property
Subject to a cooling off period of X days
Of course, as Asy sez, the offer process does vary by state, which does affect how this is structured.
Cheers,
Aceyducey
Another is subject to approval by spouse/partner/dog/cat/next door neighbour, or whatever.
Although I've heard that REAs show preference to offers without fewer escape clauses ..... Or is that preference over cash offers over subject to finance only ... Asy?
Although I've heard that REAs show preference to offers without fewer escape clauses ..... Or is that preference over cash offers over subject to finance only ... Asy?
Not sure on your thinking, but every time I make an offer I would be happy to have the place at that price.
Finance is always a clause, if you get to a point where no one will lend you anymore money, well done.
What do you consider a low offer?
I've been making a few low offers in the last month.
Advertised $290 dropped to $265 been on market for a few months, offer $250, vendor not interested.
Another $180+ offer $160 no go.
It's a numbers game, make enough offers and you will find someone who needs to sell quick.
quoll
Finance is always a clause, if you get to a point where no one will lend you anymore money, well done.
What do you consider a low offer?
I've been making a few low offers in the last month.
Advertised $290 dropped to $265 been on market for a few months, offer $250, vendor not interested.
Another $180+ offer $160 no go.
It's a numbers game, make enough offers and you will find someone who needs to sell quick.
quoll
Just make it subject to finance with a lender approved by you.
Your lender probably won't approve all 40 deals, and if they do, you've probably got yourself some great deals so either you do want to take them or you should be able to flip them quickly.
The other approach could be to put a sunset clause on all your offers - "this offer is good for 48 hours".
Finally, if you do get all the deals accepted that you want, you can ring the other agents on any outstanding and recind your offers.
Your lender probably won't approve all 40 deals, and if they do, you've probably got yourself some great deals so either you do want to take them or you should be able to flip them quickly.
The other approach could be to put a sunset clause on all your offers - "this offer is good for 48 hours".
Finally, if you do get all the deals accepted that you want, you can ring the other agents on any outstanding and recind your offers.
Hey de nero,
Try and put these or similar conditions on the contract:
This offer to purchase is being made to the Vendor/s subject to and conditional upon the
following terms:
1. The Purchaser has submitted other offer/s on other property/ies with the intention of
only purchasing one property.
2. The Purchaser will only be legally bound to proceed with the purchase of any property
where the acceptance of the Purchasers offer without any modification, for that particular
property is communicated back to the Purchaser by the Vendors Agent or representative,
prior to any other acceptance of any other offer on any property that the Purchaser has
submitted.
3. The Purchaser at his sole discretion will decide on what constitutes first notification of
any offer to purchase being accepted and communicated back to him.
4. If this offer on this particular property is accepted by the Vendor and the acceptance of
this offer communicated back to the Purchaser at a time later than a previously
communicated acceptance of an offer to purchase on another property, then this contract
shall become null & void and all deposit monies paid by the Purchaser shall be refunded
without deduction to the Purchaser.
5. If the contract becomes null & void as per item 4 above, then neither the Vendor, nor
the Vendors agent or representative or any other third party associated with the Vendor,
shall have any claim for loss or damages resulting from the voiding of this contract.
generally you get the drift, but get your solicitor to legally draft them up.
regards
Try and put these or similar conditions on the contract:
This offer to purchase is being made to the Vendor/s subject to and conditional upon the
following terms:
1. The Purchaser has submitted other offer/s on other property/ies with the intention of
only purchasing one property.
2. The Purchaser will only be legally bound to proceed with the purchase of any property
where the acceptance of the Purchasers offer without any modification, for that particular
property is communicated back to the Purchaser by the Vendors Agent or representative,
prior to any other acceptance of any other offer on any property that the Purchaser has
submitted.
3. The Purchaser at his sole discretion will decide on what constitutes first notification of
any offer to purchase being accepted and communicated back to him.
4. If this offer on this particular property is accepted by the Vendor and the acceptance of
this offer communicated back to the Purchaser at a time later than a previously
communicated acceptance of an offer to purchase on another property, then this contract
shall become null & void and all deposit monies paid by the Purchaser shall be refunded
without deduction to the Purchaser.
5. If the contract becomes null & void as per item 4 above, then neither the Vendor, nor
the Vendors agent or representative or any other third party associated with the Vendor,
shall have any claim for loss or damages resulting from the voiding of this contract.
generally you get the drift, but get your solicitor to legally draft them up.
regards
You have cooling off on them all.. (Will try to think up clauses tonight, no time now
)But the one question I will ask is, do you think this is a fair thing to do?
I'm not concerned with having 39 agents working for the sale and then you pull out having had no intention of buying, but, what about the 39 vendors?
If you were a vendor, would you be happy with someone putting an offer on your property if they had no intention of buying it?
I know you will say, But I WILL Buy it, if they accept my lowball offer (which I have no problem with, I do that myself!)...
But, what if, out of the 40, say 4 ppl accept your offers?
Only to have you decide that you don't want it. (and yeah, I know sales fall through for legitimate reasons, but this is a deliberate ruse and you are playing with peoples emotions, and lives.)
Sorry, denero, I don't think you are being fair unless they know what you are doing.
Am editing my post to add... Jakk's offer clauses as described above (which were posted at the same time I was writing mine!) are brilliant... As I said, if the vendor knows what's going on all is well with the world. (also it makes them decide quickly, a little like the 72 hour clauses I put into contracts...)
asy
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Being deceptive is just the wrong way conduct your life (business). What is wrong with being open and honest, "I am putting in a serveral offers on other similar properties I only want to purchase one at this time, this offer is good for 48 hours unless an alternative offer on another property is accepted", you dont have to say 40. Use Jakks contract clauses and tell the REA openly what you are doing, you are putting presure on the vendor for a quick response.
Originally posted by Choosy
Unless it's been changed in the last 12 months, you don't have a cooling off period on a property in Victoria if its purchase price is over $250,000
good luck with your clauses
choosy
It has changed.
There is now no limit to cooling off on residential property in Victoria.
asy
From my experience, if a property is say market value $165,000 . . . and your low ball of $100k gets accepted.... the chance of losing the deal are HIGH .. if you stuff around with too many escape clauses.
Also, if your low ball is accepted - and if you umm and argh with too many escape clauses . . . you will soon be written off by the agent as a non serious buyer - which will then sever any future ongoing referrals/cheapies etc .. l
If the agent is good.. they will have no problems finding a buyer willing to purchase the property (in this example) for the $100k - unconditional and only after inspecting the internet photos (if any).
That said, the low ball offers that i have seen accepted - were subject to finance. But that would be the only "escape" clause i would bother putting in.
WB
Also, if your low ball is accepted - and if you umm and argh with too many escape clauses . . . you will soon be written off by the agent as a non serious buyer - which will then sever any future ongoing referrals/cheapies etc .. l
If the agent is good.. they will have no problems finding a buyer willing to purchase the property (in this example) for the $100k - unconditional and only after inspecting the internet photos (if any).
That said, the low ball offers that i have seen accepted - were subject to finance. But that would be the only "escape" clause i would bother putting in.
WB
Dear WB,
If the offer submitted is on a contract note and signed by the purchaser and is then subsequently accepted and signed by the vendor..........Then that is a deal.
The escape clauses are there for the purchasers protection, and cannot be relied upon by the vendor to get out of the deal.
This definately applies to Victoria but I am unfamiliar to other states regulations.
Regards
you blokes are dreamin if you think that a property realisticly valued at 165k is going to come knocking at you door for 100k
the laws of supply and demand wont let that happen.
so in the back room of an REA with say 5 agents , 1 says to 2
the offer on 123 smith st got accepted at 100k , ive got a valuation here says it worth 165k
l know a bloke who wants one of them ,he wont miss out at that price etc etc etc his offer is 105k
and so the offers continue to rise untill market value is met
and what home owner will let their property go so cheap ?
the cheaper somthing is the more people will be prepared to buy it thats why these things sell for the highest price.
but dont let my negitive influences hold you back, lm sure all the agents in your area cant wait to submit your offers to their vendors and will welcome you with open arms when you knock 40 % or so of the valuation
good luck if you think thats how to find a bargin
the laws of supply and demand wont let that happen.
so in the back room of an REA with say 5 agents , 1 says to 2
the offer on 123 smith st got accepted at 100k , ive got a valuation here says it worth 165k
l know a bloke who wants one of them ,he wont miss out at that price etc etc etc his offer is 105k
and so the offers continue to rise untill market value is met
and what home owner will let their property go so cheap ?
the cheaper somthing is the more people will be prepared to buy it thats why these things sell for the highest price.
but dont let my negitive influences hold you back, lm sure all the agents in your area cant wait to submit your offers to their vendors and will welcome you with open arms when you knock 40 % or so of the valuation
good luck if you think thats how to find a bargin
Hey mitch - there are no rules for supply & demand...they're only guidelines
And the property doesn't come knocking to you - you go knocking for it. If you wait for a cheap property to show up, you'll be in the situation of a few people in this forum who are waiting for prices to fall 45% before buying.....you'll always for waiting!
Look back through some posts by wb & other low ball purchasers.
They get consistent results by pitching low.
They may make offers on 100 houses to get one or two, but that's all you need to get to make the strategy work.
Try it some time and see.
Cheers,
Aceyducey
Thanks for the replies guys. I think that " subject to finance" should keep me out of jail.
Ahh......Someone who gets it!
Sorry Asy but did I just get a lecture on ethics from a real estate agent?
If 4 people accept my offers I will flip the other 3. Can I use "and or assigns" in QLD and avoid 2 stamp duties?
The plan aint perfect yet. It's a work in progress.
As for playing with people's emotions, I can't help it. I have that effect on women.
So is being judgemental. (keep learning)
Cheers
Ahh......Someone who gets it!
Sorry Asy but did I just get a lecture on ethics from a real estate agent?
If 4 people accept my offers I will flip the other 3. Can I use "and or assigns" in QLD and avoid 2 stamp duties?
The plan aint perfect yet. It's a work in progress.
As for playing with people's emotions, I can't help it. I have that effect on women.
So is being judgemental. (keep learning)
Cheers
Gday Aceyducy,
my point is , put simply , somthing is only worth what someone is prepared to pay.
l feel if a property (or any good for that matter ) is exposed to the market for a reasonable amount of time , it will sell for all that it is worth.
So the concept of buying a good for 100k today means that its worth is 100k, unless for some reason the market has been artificially altered to prevent the market price from being acheived.
And the bargins l hear about usually come from "sneeky pete" who has purchased privately thus preventing the market from dictating the true value.
Regards Mitch
my point is , put simply , somthing is only worth what someone is prepared to pay.
l feel if a property (or any good for that matter ) is exposed to the market for a reasonable amount of time , it will sell for all that it is worth.
So the concept of buying a good for 100k today means that its worth is 100k, unless for some reason the market has been artificially altered to prevent the market price from being acheived.
And the bargins l hear about usually come from "sneeky pete" who has purchased privately thus preventing the market from dictating the true value.
Regards Mitch
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