Making offers etc

[tez]

Hi all,

Looked at some properties on the weekend and there is a house whic requires a bit of work that Im interested in making an offer for. Its currently listed at $330k and I was thinking of offering $295k. The place needs atleast about $20-$25k in repairs etc.

My question is, in this current market where the low end homes get snapped up, is it best just to call the agent and make the offer, or put it in writing with conditions such as valid till etc?

Ive bought a unit before, but never really did much negotiation in terms of pricing.

Thanks for your help.

 

[twobobsworth]

Just do a verbal. The agents argument will be it's priced at $330 taking into account the repairs.

 

[tez]

Just do a verbal. The agents argument will be it's priced at $330 taking into account the repairs.

Yeah dont know what to say to that
Although $330k plus $25k doesnt make it that attractive.

Do all offers need to be put to the vendor? Unless someone else as offered higher?

 

[Dazz]

$330k plus $25k doesnt make it that attractive.

If that's the case.....then by definition it's probably "close to market".

 

[JamesGG]

Its currently listed at $330k and I was thinking of offering $295k.

Just out of curiousity, is your choice of suggested price because $295k is the right value based on your extensive research, or because it's something like 10% under asking price?

The other thing perhaps worth keeping in mind is that the price is only part of the equation. You'll usually have better luck with a lower price if your terms match the vendors'.

 

[twobobsworth]

Do all offers need to be put to the vendor? Unless someone else as offered higher?

Legally yes, reality no.

 

[TseTse]

A semi-related question:

When a website lists a place as being "under offer", does that mean that its about to go off and they won't be taking inspections / offers anymore? Or is it simply used as a tactic to get people moving?

Or can it be both?

cheers

 

[Property Meister]

A semi-related question:

When a website lists a place as being "under offer", does that mean that its about to go off and they won't be taking inspections / offers anymore? Or is it simply used as a tactic to get people moving?

Or can it be both?

cheers

it means somebody has made an offer and its been accepted, so it should mean that no more offers/inspections...

as for agents using it as a sales tactic, it could backfire, however, more importantly, I would be surpirsed if it didn't break any laws or Real estate regulations...probably not worth the agent doing it..but ive been wrong before.

 

[tez]

Ive put a offer in for a place (just verbal) and the agent or vendor seems to be giving me the run around.

The agent has advised that the vendor wants to get the building report from the previous buyers (couldnt get it because of finance they say) to see what was wrong. All sounds funny.

The thing is, I also know of the vendors. Friends of friends etc so its a funny situation.
I was going to wait till tomorrow and fax a offer through to the agent giving them 24 hours and if no response, the offer no longer stands (or i'll put a new offer in at a lower price)

 

[Snort]

Perhaps the bank valuation came back too low on the property which made it fall through. In which case perhaps your offer is realistic.

I would never say 'i'll offer $X because i have to do repairs etc...' I'd say 'I'll offer $X because that's what the property is worth to me regardless of what you the agent or the vendor says'.

 

[twobobsworth]

Sometimes patience is a .......

 

[tez]

Agent said the previous buyers didnt get the finance as they were borrowing 95% or so and most likely the valuation did come back under.

I have no patience at all Not having bought alot of properties, I thought they'd be relatively quick to commit people.

 

[travelbug]

Friends of mine put in a written low offer on a property for a PPOR (only because it's really out of their price range. They didn't put a time limit on it. They will buy it at the offered price.

The agent wants them to sign a contract and leave a deposit.

They said no. What's he deal with that? I thought maybe the agent wants to use that as bargaining power to up the price of another offer.

You know "I've already got a contract signed, better hurry and offer more".

 

[twobobsworth]

The agent wants them to sign a contract and leave a deposit.

They said no. What's he deal with that? I thought maybe the agent wants to use that as bargaining power to up the price of another offer.

You know "I've already got a contract signed, better hurry and offer more".

I would guess it's more to pressure the vendors over the buyers.