I'm not an expert at negotiating but from what I'm reading you lost the agent when you wanted to negotiate $100 more and got uptight when they didn't want to know about it. They probably got scared off when you got a bit upset over that. I think the agent did a good job and recommended the other bidder is a safer buyer where you probably came across as a bit confusing and difficult to deal with. At least you have learned a few things anyway so next time you might be better at it.
Offer - What should I do?
- Thread starter Mia2009
- Start date
I think you should have made a written offer valid for 24 hours only and should have put down a holding deposit.
You should be seen as serious but not as someone who will have the property no matter what, because they can use this against you.
Have they put a sold sign up?
I'm curious to know if it's actually been sold
Upset? Difficult to deal with? Confusing? If anything, I hope I didn't came across as too desperate/keen.
The only reason why I offer $100 more was because REA said the other party offered more than $3K more, so I was trying to up the offer by little increments. I fear that he had disclosed what my offer was to the other party, so I was trying to gauge what their offer was by asking him: $100 more, $200 more??? etc. But he wouldn't discuss it.
Also, I would've thought my offer was a safer bet seeing it's not subject to finance. The other party might not have their finance finalised until mid January at the earliest, seeing that we are almost at year's end. Who's to say their finance would be approved?
Written offer made 7pm, told agent it was valid until 10am next morning. Maybe I should've made it only valid until midnight that night??
We gave a cheque made out for $1000 as holding deposit. Now they're organising it to be refunded back to me as I couldn't get to their office today.
Probably no sold sign yet seeing as negotiations only finished today, and I doubt that the vendors have signed the contract yet, as they are probably still at work.
Don't beat yourself up. You can only play the situation as you see it at the time and, as others have said, sometimes that backfires, sometimes it works. There probably was another buyer, and that's probably how it's unfolded. You'll find out for sure when that ''sold' sticker turns up.
Those who aren't intimately involved can only offer their opinions from what they've read. They're not dealing with this agent, these vendors or this property.
Live and learn. Plenty more fish (er, houses) in the sea. Lots of other cliches Go get 'em
Those who aren't intimately involved can only offer their opinions from what they've read. They're not dealing with this agent, these vendors or this property.
Live and learn. Plenty more fish (er, houses) in the sea. Lots of other cliches
Go get 'emIn many parts of the country buyers no longer get to wear the pants.
Prices are up, listings are moving and vendors/agents are starting to dictate.
Starting your offer with an odd amount, giving deadlines and final offer statements (which you don't follow through with) may have worked a year ago, but now the agents think you've read too many property books (or forums!).
Prices are up, listings are moving and vendors/agents are starting to dictate.
Starting your offer with an odd amount, giving deadlines and final offer statements (which you don't follow through with) may have worked a year ago, but now the agents think you've read too many property books (or forums!).
I think you may have sounded a bit naive if you ask whether the other offer was $100 more. RE offers are generally in even thousands, sometimes going down to $500 increments, but nobody (sane) decides between two buyers based on ONE HUNDRED dollars. And what's the point of offering $100 more if the other party are $3K above? If they're $3K above, and you want to show you're serious, even offering $3,100 would be silly - go in with $4K, or $5K more. By even mentioning piddling amounts like $100, the agent may have gotten the impression that that's how close to your pre-approved limit that you were, and the maximum amount of movement that you had. Or like the kind of people who think $100 is significant in a $500K+ purchase.
I partly agree with EP. I'd still give a deadline, for your own protection (I do this in any market), but I think you need to make yourselves come across as a bit more savvy and serious:
1) Don't make an unusual offer as an opening bid, at least not down to hundreds! Over $500K, I would make an initial offer that's rounded to at least a $5K increment. There's no reason why an unusual figure isn't any good as an offer, except that it makes them wonder what you're up to, and whether you're playing games (or going to play games). I wouldn't be surprised if this strategy cost you this deal; many vendors just don't want to deal with people who don't appear straightforward.
2) Do NOT say you're making a final offer unless you absolutely mean it.
3) Be decisive by making confident bids - eg reasonable size increases. It doesn't make you look desperate; it makes you look like you know what you're doing! Just because you throw in $5K more quite willingly, doesn't mean that you're desperate, it means you're still in the game and you know how it's played.
If it's your final offer, make that clear to the agent, and reinforce it by saying that you definitely need a response by tomorrow at noon (for example), because if they don't take this offer, you need to resume your search. In other words, desperation comes across to the agent in how you conduct yourself and the language you use when making offers, not from the numbers themselves. These are the things that smell of desperation:"Just our luck, another bidder! Tell the vendor that our bid's better because ...."
"I really hope they accept this offer"
etc - ie anything emotional
This sounds confident and serious:
"Look, we're obviously close to an agreement, so in order to try and close this deal, we're willing to offer $5K more, but that's our final offer. We believe that we're approaching the point of offering more than the property is worth and we really can't go any higher." (May I stress again that you should only say this if you absolutely mean it!)
Or if you're not ready to commit to a final offer:
"We want to purchase this property, but we don't wish to engage in endless back-and-forth. We can offer a little more but we're not sure whether it's going to be enough. Please ask the vendor what figure would make them happy to sign a contract with us and take this property off the market, and we'll see whether we can stretch that far." (Note you're still not committing to paying that figure; you're just putting the ball back in their court.
)Bear in mind that this is just my preferred style; I'm not a negotiating expert. Others may have totally different strategies! But I think that it's important to be confident and decisive, yet unemotional. Never make threats (ie "final offer") that you're not willing to carry through. Never lie.
Good luck!
It sounds like the vendors were genuine.
My daughter recently bought a house. They put an offer in, which was accepted. Then they received another slightly higher offer. But the owners (an elderly couple) decided to sell it to my daughter and her hubby because they were nicer than the other couple and they wanted a nice family in their home.
They even rang my daughter half way through the settlement period and asked if they needed any furniture. They were moving to a retirement place. My daughter went around and picked out a few things they would like. The vendor left them a fridge, dining table and a few other things. Hubby was wrapped as they left all the tools in the garage and even the lawnmower.
Some people are old fashioned. Sometimes it works in your favour, sometimes not.
Good luck next time.
My daughter recently bought a house. They put an offer in, which was accepted. Then they received another slightly higher offer. But the owners (an elderly couple) decided to sell it to my daughter and her hubby because they were nicer than the other couple and they wanted a nice family in their home.
They even rang my daughter half way through the settlement period and asked if they needed any furniture. They were moving to a retirement place. My daughter went around and picked out a few things they would like. The vendor left them a fridge, dining table and a few other things. Hubby was wrapped as they left all the tools in the garage and even the lawnmower.
Some people are old fashioned. Sometimes it works in your favour, sometimes not.
Good luck next time.
Thanks ozperp, you've made really good points. I'll try your approach next time.
Y-Man: Wouldn't signing the contract with a holding deposit have the same effect, ie. shows that I'm serious? What if some other person who didn't do a P&B report first makes a better offer than me? After all, it is a sellers' market atm
Well, I'd been beating myself up over the $5K which in hindsight I should've just agreed to. However, I have 3 more inspections lined up this Saturday for properties which are in better locations, albeit more expensive but well within our budget, but I think the long-term CG will be better than this one I lost.
Wish me luck!!!
Y-Man: Wouldn't signing the contract with a holding deposit have the same effect, ie. shows that I'm serious? What if some other person who didn't do a P&B report first makes a better offer than me? After all, it is a sellers' market atm
Well, I'd been beating myself up over the $5K which in hindsight I should've just agreed to. However, I have 3 more inspections lined up this Saturday for properties which are in better locations, albeit more expensive but well within our budget, but I think the long-term CG will be better than this one I lost.
Wish me luck!!!
ALWAYS put yourself in the seller's shoes.
You have 2 buyers, same $ offer:
One is subject to P&B inspection 10% Deposit
One is UNCONDITIONAL 5% Deposit (because they have already done inspection and have finacne sorted out)
Which would you accept?
Cheers,
The Y-man
I partly agree with EP. I'd still give a deadline, for your own protection (I do this in any market), but I think you need to make yourselves come across as a bit more savvy and serious:
1) Don't make an unusual offer as an opening bid, at least not down to hundreds! Over $500K, I would make an initial offer that's rounded to at least a $5K increment. There's no reason why an unusual figure isn't any good as an offer, except that it makes them wonder what you're up to, and whether you're playing games (or going to play games). I wouldn't be surprised if this strategy cost you this deal; many vendors just don't want to deal with people who don't appear straightforward.
2) Do NOT say you're making a final offer unless you absolutely mean it.
3) Be decisive by making confident bids - eg reasonable size increases. It doesn't make you look desperate; it makes you look like you know what you're doing! Just because you throw in $5K more quite willingly, doesn't mean that you're desperate, it means you're still in the game and you know how it's played.
"Just our luck, another bidder! Tell the vendor that our bid's better because ...."
"I really hope they accept this offer"
etc - ie anything emotional
This sounds confident and serious:
"Look, we're obviously close to an agreement, so in order to try and close this deal, we're willing to offer $5K more, but that's our final offer. We believe that we're approaching the point of offering more than the property is worth and we really can't go any higher." (May I stress again that you should only say this if you absolutely mean it!)
Or if you're not ready to commit to a final offer:
"We want to purchase this property, but we don't wish to engage in endless back-and-forth. We can offer a little more but we're not sure whether it's going to be enough. Please ask the vendor what figure would make them happy to sign a contract with us and take this property off the market, and we'll see whether we can stretch that far." (Note you're still not committing to paying that figure; you're just putting the ball back in their court.
Bear in mind that this is just my preferred style; I'm not a negotiating expert. Others may have totally different strategies! But I think that it's important to be confident and decisive, yet unemotional. Never make threats (ie "final offer") that you're not willing to carry through. Never lie.
Good luck!
Ozperp,
Some very good points, and great ideas on how to handle yourself during negotiations. Kudos!
I especially agree with "never lie" as liars always get found out in the end, usually at the most inopportune time! Honesty is always the best policy, that's what I tell my girls anyway!
I would like to add to this though, in saying that during negotiations, you should never volunteer any extra information that you need to. (different from lying, in my opinion)
Boods
Not really. They can't bank the deposit until you've agreed terms and signed a contract, and can't actually access that deposit until settlement. And if you legitimately withdraw from the contract, you get your deposit back anyway.
If you've had a B&P done, you already have money irrevocably invested in this property.
Well guess what guys?
Just got a call from the REA's assistant (now why didn't he call me himself?) - the property's now back on the market. They wouldn't tell me why though.
During the past week, I've already put a holding deposit and signed the contract on another property.
What to do now?
Just got a call from the REA's assistant (now why didn't he call me himself?
) - the property's now back on the market. They wouldn't tell me why though.During the past week, I've already put a holding deposit and signed the contract on another property.
What to do now?
Well guess what guys?
Just got a call from the REA's assistant (now why didn't he call me himself?
During the past week, I've already put a holding deposit and signed the contract on another property.
What to do now?
What would you do if you were back to square one and had not made an offer on either property? I would try and let logic rule over emotion and go with the best financial decision. This is of course if you have a clause allowing you to terminate the current contract without penalty.
It could be that there was no genuine buyer or there are issues with it.Well guess what guys?
Just got a call from the REA's assistant (now why didn't he call me himself?
During the past week, I've already put a holding deposit and signed the contract on another property.
What to do now?
Try to find out what hapenned.
Did you have a good look at the property?
Go for another look and if you really like the place.
offer them less than before and subject to passing pest & building inspection + finance approval
