Offer advice - REA "other offers"

[churchado]

Has anyone ever had an experience with an REA where they haven't been told there were already other offers for $XXX?

I looked at a property yesterday for IP which is pretty new on the market and was told there'd already been a rejected offer of $315K (Currently advertised at $339,500).

I want to go in at more like $305,000 but am concerned he's going to reject it outright based on what he has already said. Is it worth starting this low? Should I try and call his bluff?

 

[DaveM]

Theres always another interested party who is coming back for a 2nd inspection this afternoon, or another offer higher than yours, or another offer not far off the asking thats been rejected.

Its real estate agent training course 101 cliches to try to get you to feel under pressure to offer more before you miss out

Offer what you are comfortable with. You dont know the vendors situation or motivations, they may take 315k from a strong buyer rather than 325k from a flaky finance questionable buyer if they need it sold.

 

[churchado]

Ok. Thanks. I have to say, I'm pretty over all the REA machinations. Just wish the price was set and they would just at what they want and you could take it or leave it (yes I also beleive in unicorns).

 

[Brady]

Ok. Thanks. I have to say, I'm pretty over all the REA machinations. Just wish the price was set and they would just at what they want and you could take it or leave it (yes I also beleive in unicorns).

Hasn't it been set at $339,500 already?

 

[TMNT]

yes that is all correct with the clich?s etc,

however, in a hot market, there is more then not a chance that there is another offer unless its stupidly priced

so unfortunately, if you think its worth $320 to you, but go in at $305, and you get told the other offer is $315 for example,

sometimes you just gotta bite the bullet and offer $315 or $320 with same or better conditions,

and play their games

 

[Singo]

If it is buyer's market you may offer low and try your luck. If it is hot, it is better if you offer close to what you are prepared to pay! REAs come up with all sorts of stories. Once one told me to make an offer fast because a South African investor is flying to Australia to make an offer

 

[Logica]

Hi churchado
How close does this property meet your IP brief? Are there many similar properties available? How much do you think would this property sell for if it went to auction today?
If the property were really good in terms of your brief and supply was bit of an issue then I would give it my best shot - close to what the answer to the third question is.
Don't forget the conditions of your offer, e.g. finance, settlement etc. As daveM said, favourable conditions (to the vendor) may save you fair bit of cash, yet still put your offer in front.
Good luck, Paul