Lowball offers, questions.

Giving reasons for a lower offer is Ok, eg if there are repairs needed like a fence is obviously falling over or front stairs unsafe. Though they may have already factored it into the price.
Of course it pisses them off, because they know if the fence is falling over, and yes, they've factored it into their price. It's not news to them. To change people's minds usually requires some revelation.

"That falling-over fence you have is falling over, and as such will cost me money to make it not-falling-over" is not a revelation. :rolleyes:
 
A few years ago ( 2001) we practiced making low ball offers . We were looking for a new PPOR . Had our budget , then went around looking at properties we couldn't afford , making offers we could .

Didn't end up buying any of those , but it was surprising at how much people were prepared to drop if they came back with a counter offer .

It was an interesting psychological exercise and we ended up working out we got the best response if we followed up with comments along the lines of . It's a really nice property and we know it's worth more , but this is all we can afford ... ( that was in the context of wanting them as a PPOR , not an ip )


Cliff
 
I am days away from submitting a lowball offer for a house in Caboolture.

$45k under current asking.

I have *reasons* for my lowball, such as recent comparable property sales, among others.

I have written a letter outlining my *reasons* and was thinking of submitting the letter to the seller with the offer, a cheque for 10% and a special condition that the REA makes sure they get that letter.
I get about 3 letters a month from developers wanting to buy a property we control,six months ago it was 2-3 letters every 6 months,one even said they wanted to level the fibro humpy office that I work from,big mistake to insult someone acting on the mistaken but honest belief that they already think that is her or his land,just from a upfront letter and a 20 buck bottle of wine,never ever give out too much about yourself,and every letter goes in the fireplace..
 
Is it a flood prone property or just a flood prone area .
Area. Occupier loses ability to use the local roads during floods.

Either are irrelevant as the vendor should have priced those in .
Except if they haven't?

If it's 45 k above what you consider to be reasonable price , you probably have an unrealistic vendor , and they take time to move .
Yar. Property has been on the market for nearly 3 years. LOL.

I wouldn't worry about the conditions . You've been reading too many books .
This is advice that I do not respect. Invest first in your education. There is nothing wrong with following the advice of those who have gone successfully before you.

Make the offer with minimum of fuss and if they reject it , don't waste your time trying to convince them you're right ...
Hurts me nothing to work hard and try my best. I am here for opinions but this advice doesn't persuade me that trying hard is wrong. Although I accept that I may be wrong and this technique may not work for this property.

You don't want to get the reputation as the weird buyer ...
as if you don't buy this one , the agent won't go out of their way to help you the next time ( they're only human )
This is true, I hate standing out in the crowd and I hate being talked about but I think that I need to build my property portfolio above all else and put my personal shyness aside.

Who knows, maybe the REA's I have contact with will have an easier time remembering me when similar properties come up?

If they're wanting a sale, I am a qualified buyer and I intend on buying multiple properties within their area.

So maybe dealing with a focused 'weirdo' could work for them?
 
This is advice that I do not respect. Invest first in your education. There is nothing wrong with following the advice of those who have gone successfully before you.
And that's what you're getting here . We've bought and sold over 30 properties in the last cycle and we've bought 4 in Brisbane in the last month against competition and are looking at buying more .

Many of the members who've replied to this thread are experienced property investors who have bought and sold many properties .

I've looked at Caboolture in the current cycle

If a property in Caboolture has been on the market for three years you have a unrealistic vendor and trying to use logic on them is unlikely to work . Make an offer and move on if they knock it back . Next time you deal with the same agent and make an offer the owner will ask the agent for advice . They'll say , " last time I dealt with them , they made an offer and didn't come back with a counter offer , so if you don't accept their first offer you may miss out on the sale "

Most people here aren't writing books . Books need padding and they will fill up with stuff that is not really necessary .

The conditions you wrote suggest to me one of two things , that you are inexperienced or difficult to deal with . Agents prefer to work with people who know what they are doing and aren't difficult to deal with . In a hot market agents will go with the path of least resistance .

When we started out we did versions pf what you're doing and I don't think it really helps

Cliff
 
I have been on both sides as I was a REA before.

Speak to the REA as a normal person and submit your offer with the least conditions and remove 'repair the gutter' just make your price 5k less. Reason being it opens up another can of worms that they vendor might not do it to your liking. Whereas if you put 5k less (10k if you want to be safe) then you make the repairs with YOUR person and at your time.

What if the vendor is in financial hardship and you want them to come up with 7k to fix the gutters and they don't have the money, you have now lost the sale.

Having ST partner inspecting the property, that is weak and I would never sign this and as a REA I would be advising my vendor to remove it from the contract as you one haven't specified who it is and two get them to do the inspection BEFORE you put an offer in. If the property has been there for 3 years are you saying this mystery business partner hasn't had time to visit?

Keep it simple and don't try to put peoples buttons, put your offer in at the price you want, at the VENDORS preferred settlement period (ask the REA) and STF (tell REA you have preapproval) along with STB&P and deposit.
 
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