Making an offer!!!!!!

[zaligirl]

Hi All,

In the next day or two i will be making an offer on a property, it will be our
2nd IP but have been out of the game for the last 10 years. Just wanting to know the best strategy in negotiating the best price. E.g. Should I be getting a written offer for it to be signed by the vendor

Cheers

 

[BayView]

Think win-win.

The Vendors will want to sell for sure, but offering low may not be attractive unless there is a nice, short settlement and very few, if any "subject to's".

It helps if you know what the Vendor's motivation for selling is.

 

[zaligirl]

hi LA, If I only knew their circumstances, like asking the R.E. who shot JFK.

 

[Stella]

Think win-win.

The Vendors will want to sell for sure, but offering low may not be attractive unless there is a nice, short settlement and very few, if any "subject to's".

It helps if you know what the Vendor's motivation for selling is.

So knowing (if i believe the agent) that there was a contract a month or so ago when listed at $629k but that fell over on finance & that vendor is selling 3 properties at the moment, how low would be too low if the listed price is now $639k?? and I need to make it conditional on selling my ppor - how low is too low??

Cheers
Stella

 

[BayView]

So knowing (if i believe the agent) that there was a contract a month or so ago when listed at $629k but that fell over on finance & that vendor is selling 3 properties at the moment, how low would be too low if the listed price is now $639k?? and I need to make it conditional on selling my ppor - how low is too low??

Cheers
Stella

I don't know that answer. It depends on what the comparable properties in the immediate area are selling for right now.

If the Vendor is selling 3 properties right now, you can bet they are aware of the local values, but they may also be in a big hurry to off-load the 3 properties.

You could try a bluff. If it was an unconditional offer on 60 days or less for settlement, you could offer $600k and see what reaction you get.

If you have to make the offer subject to your house being sold, you don't have a lot of bargaining power on price.

It reads in your post like the Vendor has now increased the asking price? This could mean the Vendor is trying out the market, and not in too big a hurry to sell, or they know that the price originally asked was too low.

 

[obiwan]

previous response

I asked the same question a while ago and got these responses

http://www.somersoft.com/forums/showthread.php?t=23770

 

[Stella]

I don't know that answer. It depends on what the comparable properties in the immediate area are selling for right now.
Comparable houses in the area are dropping $20-30k off the asking price at the moment. The ones we have been keeping an eye on are just not selling & are being reduced at the moment. There is also a lot to choose from although partner is in love with this place now!

If the Vendor is selling 3 properties right now, you can bet they are aware of the local values, but they may also be in a big hurry to off-load the 3 properties.
Led to believe vendor is a builder also offloading H&L so hoping is feeling a cash crunch

You could try a bluff. If it was an unconditional offer on 60 days or less for settlement, you could offer $600k and see what reaction you get.
Can't make it unconditional unfortunately.

If you have to make the offer subject to your house being sold, you don't have a lot of bargaining power on price.
but I'm gonna give it a try anyway - what have I got to loose

It reads in your post like the Vendor has now increased the asking price? This could mean the Vendor is trying out the market, and not in too big a hurry to sell, or they know that the price originally asked was too low.

I think the first contract was within 48hrs of the original listing so I guess they may be taking that as an indication it was priced low.

Houses up to around $550 seem to be moving but from what is not selling around the area and because the house is sort of unique, (great instant appeal but then when you start to think about it there are some (for some) off putting unpractical factors) I think we will go in with a low offer and see what happens. A couple of comparable properties have dropped their listed prices to $620 & $599 so I think we will start somewhere around $580 & see where it goes from there.

They can always laugh & say no!

 

[Stella]

Update

Had a closer look at the house - appears some of the renos are a bit dodgy. Has a mezzanine level (if only it was level) -with a wall in the middle & each side sloped a different direction.

Funny how things look second / third time around when the flashyness is replaced by the heavy feeling of the checkbook in your pocket!

Still looking.........

Cheers
Stella