Need to decide to make offer or not. Urgent Advices please!

[Unict]

Hi everyone,

I have been following up a property (of the plan, 20% completion) for about three weeks.
There are two unit on the block and the first one was sold quite quickly (at $520K as the agent told me?!). Asking price 490K plus.

I have reviewed all docs and quite happy with everything.
Submitted for finance last week and expect the preapproval this Wednesday. The agent believe I have genuine interest in the property. She is aware that I would get finance done mid this week.

I have been to inspection every Sat and no one shown up excepted last Sat when I secretly watched from the distance. There was obviously a keen one.

The agent called at 8pm last evening (Sun) telling me there had been one good offer over the weekend and the vendor wanted to make a quick decision. She told me the vendor wanted to know my offer otherwise they would sell it tomorrow. He had counter-offered $530K to the other bidder based on her words. The agent also mentioned the first one was sold for $520k.

She tried to get a number from me and I said we were thinking around the asking price or less which she said well below the other bid.

I said I am not prepared to bid up until I make either an offer subject to finance or an unconditional offer later this week.

Until that point she said the house could be sold tomorrow as the other offer is not too low from expectation.

After a pause, I told her I would get back by lunch time tomorrow.

----------

I think they are seriously want to sell tomorrow as they would not risk loosing me over this game.

Should I make a verbal bid tomorrow until I give up or get the house at or below what I am willing to pay for it.
Then follow up with an offer subjects to finances?

The other bidder subjects to finance as well.

Thanks for any suggestion.

 

[see_change]

Which state ?

Doesn't sound like it's in Sydney with that level of interest .

If in Q'land , If you want it and the price is right , make a written offer with a clause subject to finance , which they always have in anyway.

Depending on how unique it is / how hard it would be to find another similar one is , how you think the market is likely to move etc would depend what price you offer. To go from 520 to 525 is less than a 1 % increase in price and sometimes it's worth paying a touch more than what you would ideally like in order to finalize the purchase so you can move on to what you want to do next. Some people will negotiate over every 1 K and walk away if they don't get it at that price .

We've made offers on three properties at the moment . One accepted our first offer which I thought was below market . The other two have been on the market at optimistic prices , hence the reason why they're still on the market. One , we've negotiated down to our initial target price and the other we shifted up slightly over what I wanted to pay for it . It's fairly unique in it's area and we think that it has very good prospects for capital growth. Probably paying 1-2 % above what I was hoping .

Over all on the three properties we'll be paying around what I though we'd be paying ( assuming all actually end up exchanging in the next couple of days ...)

Cliff

 

[spludgey]

IP or PPOR? If IP, walk away.
If PPOR, then all the logic in the world might not help and you have to decide whether you want to pay an inflated price or not.

Have you confirmed with other sources what the first one sold for?

 

[Unict]

It is a PPOR in Vic guys.

My mate said the agent knew I would get finance this week so she is trying to force me doing exactly what I plan in the first post: bidding in rush.

After all, he reckoned I play hard and tell her I have the money, I have a good offer in my mind, but they have to wait until wednesday.

You wouldnt mind waiting another two days to get another bidder in would you?

 

[wylie]

You wouldnt mind waiting another two days to get another bidder in would you?

If I was the vendor, I would want to grab the "bird in the hand" rather than wait for another bidder who cannot decide, especially if the agent knows you want it for less than the first buyer (if it is a genuine story).

 

[The Y-man]

Couple of issues here.....

• This thing is OTP and only 20% complete - can financing be locked in at this stage (me thinks not). In any case, you will likely need to go unconditional on an OTP without knowing what the property value will come in at settlement.
• Get a friendly broker to confirm the sale value of the other unit (agent could be having you on) if it can be got (not so sure with OTP sales)
• This is a PPOR - so you have to be willing to pay a "emotion" premium

The Y-man

 

[Unict]

I know how much I am willing to pay, just the timing of the offer. I already stated clearly I will come and offer on Wed. But it all happened last night that they want to seal it today (!?).

It could be true as Wylie said. Obviously the first unit was sold very brieftly.

Valuation can only be ordered three months before completion at best. CBA.

 

[Unict]

520k was knocked back they said they already had that.

 

[robbiejuve]

It's difficult to bid on a PPOR without emotion like you would an IP. There is an emotional fee as someone has already suggested.

We negotiated on our PPOR and actually walked away until the agent called us back a day later and still today we kick ourselves for taking that risk because we love it so much.

You need to decide how much you love this property in dollar terms

 

[Unict]

Thanks, robbiejuve. We might end up in the same situation. As a PPOR, we think we would hate ourselves for loosing it more than if we overpaid for it, to a certain extent. You are right we need to cap our emotional fees at the same time.