Negotiating after B&P
- Thread starter JWR
- Start date
I dont think there is any problem with asking for a discount based on inspection, or asking for the problem to be fixed.
I have a problem with saying it is the bank that is asking you to do that....... I guess I've never seen a valuer/bank come back and give specific building issues. So, to me as a vendor, it would just seem that you are full of it .... I would immediately discount your request because its fairly clear that you are not being honest.
I think you are far better off being up front and saying that the problems were raised in a building report, and ask for what you want. Why do you think your request is less likely to be successful with an actual building report, rather than making up a story about the banks?
You dont need to be tricky to get what you want.
I have a problem with saying it is the bank that is asking you to do that....... I guess I've never seen a valuer/bank come back and give specific building issues. So, to me as a vendor, it would just seem that you are full of it .... I would immediately discount your request because its fairly clear that you are not being honest.
I think you are far better off being up front and saying that the problems were raised in a building report, and ask for what you want. Why do you think your request is less likely to be successful with an actual building report, rather than making up a story about the banks?
You dont need to be tricky to get what you want.
The other key issue, is whether you bought at auction, or placed an offer?
If you bought at auction, you did give up your cooling off period, so you dont have much chance to renegotiate. You'll need to speak to your solicitor to see where you stand. Essentially, all of that due diligence should have been done prior to the auction
In terms of your letter.. its far too long, wordy, and you dont actually say what you asking for...........
If you are in your cooling off period, following an offer...you need to just say something like
Following on from our pest and building inspection, the following issues were raised.
a . b. c. d etc
Following a quote, the estimate to make these repairs is $*********.
As a result, I would like to reduce my offer by $********. (I would request some sort of split in the total costs.. )
Alternatively, I would request that these issues are resolved by the vendor prior to the date of settlement, and will incorporate this requirement into the contract as a special condition.
Can you please pass on this revised quote to the vendor and let me know ASAP if they are agreeable to this change?
regards,
Keep it simple and straight....... and be prepared to get knocked back and negotiate from there. But, again if you bought it at auction, I dont think you have much chance of being successful.
No not bought at auction but a funny situation.
Its a deceased estate and we are awaiting a grant of probate to get the contract settled sometime in May.
The agent is about 25, female and very inexperienced. Also from out of town with misconceptions of the values in the area (why I got it so cheap) and seems to be convinced that whatever I say is correct.
The vendors obviously listen which is why I think there's a good chance of getting a reduction across the line.
Gotta be careful as I will not pull out if they say no since its still a good deal.
So trying to be civil and 'oh what a hassle this is'.
Its a deceased estate and we are awaiting a grant of probate to get the contract settled sometime in May.
The agent is about 25, female and very inexperienced. Also from out of town with misconceptions of the values in the area (why I got it so cheap) and seems to be convinced that whatever I say is correct.
The vendors obviously listen which is why I think there's a good chance of getting a reduction across the line.
Gotta be careful as I will not pull out if they say no since its still a good deal.
So trying to be civil and 'oh what a hassle this is'.
If you've already got it cheap, knew about the problems before the B&P then i don't get why you're going to try to push it further. If it were me and I knew you already knew about the problems I'd either reject it, or just say that I don't want to deal with you anymore cause you're mucking me around too much.
I am with the other posters.
I assumed the B&P was the opportunity to have a full inspection of the property and if something major comes up you are able to get out. I never thought of it as a further piece/item for negotiation.
But at the end of the day - if the vendor accepts then it is your good luck - just depends how desperate they are.
Also with others in terms of blaming the banks for it. Why would the bank care whether you have mold in the bathroom?
Good luck with it.
I assumed the B&P was the opportunity to have a full inspection of the property and if something major comes up you are able to get out. I never thought of it as a further piece/item for negotiation.
But at the end of the day - if the vendor accepts then it is your good luck - just depends how desperate they are.
Also with others in terms of blaming the banks for it. Why would the bank care whether you have mold in the bathroom?
Good luck with it.
Well if the bank thinks it can't be rented as is - which is what I will argue - and that the repairs need to be fixed - well that could drop the price.
Every step of the process is a chance to negotiate.
The mold is actually in a bedroom on the ceiling - not the bathroom.
Its a no-lose situation so lets wait and see..
Every step of the process is a chance to negotiate.
The mold is actually in a bedroom on the ceiling - not the bathroom.
Its a no-lose situation so lets wait and see..
Maybe best to steer clear of auctions from now on MsAli given you bid more than you wanted to pay.
Seems to me West Syd is overvalued now if s-holes like that go for 220+
Hi JWR, I'm capable of making my decisions and I am learning. Did you read that it was my FIRST auction. Give me a break! I wasn't mucking around. I went with a bank cheque with an unconditional approval of 220k - though did not intend to go upto that. The end result was nil - as it was beyond what I intended to spend, I did not win the auction. Thanks for the advise however I'd appreciate if you were a bit more considerate about how you approached advising others. One size doesn't fit all and everybody has their own ways and circumstances. It's naive and inexperienced to think that your way/advice would work for others at all times.
Do you give up after your first go? NO? So in future do not advise me to do it a certain way because I am willing to learn through trial and error.
Plus the buyers seemed like FHB so I wasn't surprised. AND you are making an assumption about western Sydney....A lot of houses are now selling for $230k and more as well apart from the housing department ones or the ones in need of renovation!
I hope you reconsider how you approach the vendor.
Your negotiating position will be stronger if you keep to the truth, rather than making up stories about the banks valuation. Maybe these vendors are not experienced, and they'll buy your story....... but I hope not.
I just dont see why you think you have to make up stories, when you have a perfectly valid inspection that you can use. By making up stories, you weaken your position..... why would I believe anything you say about quotes etc if you have made up some silly story about the banks valuation (and it is clear to an experienced vendor that it is a silly story.....)
From this thread and your other earlier in the year, (http://somersoft.com/forums/showthread.php?t=76386&page=4)
it seems that you are more interested in "playing games" with the vendors than negotiating seriously.
From my viewpoint, you dont have to play these games...... and in the long term, it wont help you in your investing career. If you really want to learn to negotiate, put aside the stories and games.....and start negotiating from the strongest position.
Your negotiating position will be stronger if you keep to the truth, rather than making up stories about the banks valuation. Maybe these vendors are not experienced, and they'll buy your story....... but I hope not.
I just dont see why you think you have to make up stories, when you have a perfectly valid inspection that you can use. By making up stories, you weaken your position..... why would I believe anything you say about quotes etc if you have made up some silly story about the banks valuation (and it is clear to an experienced vendor that it is a silly story.....)
From this thread and your other earlier in the year, (http://somersoft.com/forums/showthread.php?t=76386&page=4)
it seems that you are more interested in "playing games" with the vendors than negotiating seriously.
From my viewpoint, you dont have to play these games...... and in the long term, it wont help you in your investing career. If you really want to learn to negotiate, put aside the stories and games.....and start negotiating from the strongest position.
The old saying of honesty is the best policy is probably quite apt here.
Also the old wives take about the movement of karma.
Be honest about it and you never know it may just come off.
I have learnt something in this thread, so thank you. I had never thought of negotiating based on building and pest. I think it is because of the large auction culture in melb, ie get b&p done prior to auction (or prior to the bid you are putting in).
Also the old wives take about the movement of karma.
Be honest about it and you never know it may just come off.
I have learnt something in this thread, so thank you. I had never thought of negotiating based on building and pest. I think it is because of the large auction culture in melb, ie get b&p done prior to auction (or prior to the bid you are putting in).
if i was the vendor ide be moving to have the contract cancelled as you are obviously unsatasifed with the bp report and if you are still ineterested new terms submitted under new contract for me to consider. no way in hell i would allow negotiating after the fact. after the bp you are either in or out.
Hi James
I know others have also answered here but the letter above will be laughed at- no lender/valuer provides this as a response and they will see right through you. Better to be upfront, as others have said already. Put in writing succinctly and factually and best of luck.
It's certainly not uncommon to try to negotiate after b/p results (we do it all the time for buyers) but it will depend on the extent of damage, the knowledge of these problems prior, the state of the market, and the willingness of the vendor to accept a lower price or conduct repairs.
Best of luck.
Still negotiating.
They haven't moved on price YET
They have given me an extra month to settle
And early access to fix the issues up
So that's a couple of grand win!
But still trying - when I spoke to the agent she said the vendors are very inflexible with the price because the original price sold was so low! And they are averse to fixing the issues before settlement as they wanted to sell 'as is'.
Can't dispute that but I have to look at it from another angle to get what I want. So I am still thinking.
In the process of getting some quotes and I am thinking that when the overinflated quotes come back I can argue they were way more than originally thought so we have to renegotiate.
James
They haven't moved on price YET
They have given me an extra month to settle
And early access to fix the issues up
So that's a couple of grand win!
But still trying - when I spoke to the agent she said the vendors are very inflexible with the price because the original price sold was so low! And they are averse to fixing the issues before settlement as they wanted to sell 'as is'.
Can't dispute that but I have to look at it from another angle to get what I want. So I am still thinking.
In the process of getting some quotes and I am thinking that when the overinflated quotes come back I can argue they were way more than originally thought so we have to renegotiate.
James
