Made an offer, got a response, what to do

[HiEquity]

I'm gonna appear stupid but what's DD? Urban dictionary suggests either designated driver (no) or really big breasts (girlfriend? possibly...)

DD = Due Diligence.

Of course you have done extensive market research and as a result know that this property is actually worth significantly more than $340k, which is why you would be happy to buy it at that price.

Or your research points to the house only being really worth $320k in today's market, so you would be silly to offer a cent more no matter how much you like it.

Others say it's a PPOR so it doesn't matter. For me, I only like to buy something I know is a bargain and if it isn't one I won't buy it no matter how perfect it may appear in every other respect.

My advice is to know and be confident about your valuations - your offer price has nothing to do with the asking price. Instead, it should have reference to:

a) how much it is actually worth in the current market; and, if you can get it at or below market value, then consider:
b) how much it is worth to you.

If you can get it at or below market value and you are actually prepared to pay that amount, then knock yourself out with whatever it takes to get it. The asking price has nothing to do with either of these two things...

 

[Ski-bum]

lol

DD = due diligence

helpful thread:
http://www.somersoft.com/forums/showthread.php?t=9382

 

[GFree]

Our offer of $335k was accepted!

Thanks to all for the advice.

 

[Luv2Travel]

Congratulations!

I'm sure you'll look back in a few years and be glad you paid that tiny bit extra to secure your dream home. It'll be petty cash to you then.

 

[Bargain Hunter]

Kudos to you and you saved $5k

 

[wylie]

Well done. Good result.

Stick around for advice on the next purchase .

 

[Dazz]

what's DD? Urban dictionary suggests either designated driver (no) or really big breasts (girlfriend? possibly...)

Your dictionary was correct with the last option.

With the purchase of every property over the Govt set limit of 300K, every real estate agent is obligated, as per section 23.6(f) of the code, to supply a buxom blonde for the incoming purchaser.

The DD specification, as you've already figured out, is obviously related to the aforesaid glandular assets. The minimum is a straight D cup for units and townhouses. E and F cups are reserved for mansions over 6 bedrooms. This is usually because the blonde is normally allowed to stay beyond the minimum 3 week period.

Lucky investors like Nathan get to do his DD every couple of days, but in all honesty, this rate can only be kept up for the first 6 months or so of an investors career. Reality soon sets in, and most are lucky to get their DD once every two years or so.

Well done on closing your deal for more than the 300K thresh-hold. Enjoy your DD.

 

[vmclee]

Your dictionary was correct with the last option.

With the purchase of every property over the Govt set limit of 300K, every real estate agent is obligated, as per section 23.6(f) of the code, to supply a buxom blonde for the incoming purchaser.

The DD specification, as you've already figured out, is obviously related to the aforesaid glandular assets. The minimum is a straight D cup for units and townhouses. E and F cups are reserved for mansions over 6 bedrooms. This is usually because the blonde is normally allowed to stay beyond the minimum 3 week period.

Lucky investors like Nathan get to do his DD every couple of days, but in all honesty, this rate can only be kept up for the first 6 months or so of an investors career. Reality soon sets in, and most are lucky to get their DD once every two years or so.

Well done on closing your deal for more than the 300K thresh-hold. Enjoy your DD.

+1 vote for best post this year

oh, and Congrats GFree!

 

[Ausprop]

Then they end up with $10k of shares and miss out on the house. That's handy.....

If other comparable houses are selling for $340k then you may well miss out. The Adelaide market is still travelling nicely.

Gools

$10k + the tax saving + growth/income in a low tax environment.

so anyway $5k can be sacrificed now! $9k would have been better!!

 

[marg4000]

Congratulations on your purchase.

And look on the bright side, you saved yourself $5K, the extra you were prepared to offer.
Marg

 

[Rixter]

What ppl are forgetting to ask them selves is $10k at 7% IR is mere $13 per week in bank interest less tax deductions (if IP) of lets say 30 cents in the dollar.

All this equates to $9 p/w... If all the usual Macro & Micro DD stacks up, for the sake of $9 is it worth the stuffing around?

Food for thought.

 

[cadence]

Did the property have a listing price and was that $340k? If so, generally, the vendor expects the purchaser to negotiate it down at least a bit, so I think $330k is not unreasonable.

The issue is how much do you like the property and what other people are prepared to pay for it. How many people were at the inspection? Did you overhear or notice their responses?

If you think there may be others interested (I know it's difficult, but just go with your gut feeling on this and bearing in mind the market is generally slowing), and you dont want to risk losing it or wasting more time looking, I would pay the minimum they want or slightly under.

If the property was listed at higher price say $360k and vendor expressed they will accept $340k as a minimum, then unless they are desperate, they may just hold on to it especially given it has only been 2 weeks since it came on the market.

It's not easy to find a property which ticks all your boxes that's within your budget, so if it's something you really like, I would try to nail the deal.

 

[Luv2Travel]

Did the property have a listing price and was that $340k? If so, generally, the vendor expects the purchaser to negotiate it down at least a bit, so I think $330k is not unreasonable.

Not necessarily, in a hot market a property can easily go for asking price or even higher. A property in an area I was looking at recently was listed as $399K private sale (I know it's normal in auctions to 'under quote'), which I thought seemed cheap for what it was. Sold for $430K, so I don't think list price means a lot without doing your homework.

 

[Perp]

Kudos to you and you saved $5k

Or paid $5K more than was necessary. There's no way of knowing which is correct, but I agree with the sentiment that it doesn't really matter, anyway - particularly since it's now a done deal! Congratulations, GFree.

The minimum is a straight D cup for units and townhouses. E and F cups are reserved for mansions over 6 bedrooms.

I'm wondering what you get for a couple of floors of CBD office space...