OK, I'm gonna make an offer
- Thread starter Queen Bee
- Start date
can only try - worse that can happen is being rejected and having to come back with a higher offer.
we're putting in an offer tomorrow for half orginal asking price.
without us even putting in an offer, vendor dropped their orginal price by 30% - only because we were sniffing around and pointed out the flaws. we'll try to get the other 20% off with even more logic.
good luck.
we're putting in an offer tomorrow for half orginal asking price.
without us even putting in an offer, vendor dropped their orginal price by 30% - only because we were sniffing around and pointed out the flaws. we'll try to get the other 20% off with even more logic.
good luck.
They dropped the price from $495k, hasn't been able to sell, because obviously it was too high, or else it would have sold by now. Seems potential buyers can't see past the mess, and it doesn't actually need that much work done to it. The REA warned me before I went that it's pretty bad, we didn't think so, seen much worse. But I played on the fact to the REA that it needed soooo much done to it, justifying my place hopefully. Put in offer last night, doubt Vendor will take it, but we will know today.
good luck with it
although I have never purchased a property.... it must be exciting that you are going to get a bargain if they say YES!
although I have never purchased a property.... it must be exciting that you are going to get a bargain if they say YES!
What was the counter-offer?
well, whats the counter offer?!?!?!?
original price of $495, dropped to $419,
your counter offer $365 ,
new offer is $409,
why not take in between $387 or $390.....
Ill bet they will seriously consider $390...
I think it said in another thread, "be prepared to walk way" to get the best price!
your counter offer $365 ,
new offer is $409,
why not take in between $387 or $390.....
Ill bet they will seriously consider $390...
I think it said in another thread, "be prepared to walk way" to get the best price!
If you are serious and have finance ready to go, do this.
Put an offer in writing as your last and final offer of say $375k. or $365k, its up to you.
Then you have to tell them why you are making such a low offer. You have to sell them on your offer. You need the agent to go into bat for you. A written offer is very powerful to an agent as he/she can take it and show the vendor "this is what the market is saying blah blah" they love that vendor conditioning power.
Write "my offer is made on the basis of":
Current market conditions.......explain how crap they are.
Comparable sales, if they are really bad, list them.
Condition of property...pick on anything you can think about the house, the street, the area....etc
You get the idea...build your case for such a low offer and the agent will present it to the vendor and go into bat for it.
Also, make it time sensitive. eg: "this offer is valid for 48 hours" or whatever.
Tell them you are also looking at other properties and will make a decision very soon.
This has worked for me lots of times and should be good for you in this current market.
Its much better then just ringing the agent and saying "$365k is my offer"
If they knock you back, you can always come back later. As you say, it probably wont sell in the meantime (what ever you do, don't believe there is another offer in this market) and as you say, you have other properties to look at.
Put an offer in writing as your last and final offer of say $375k. or $365k, its up to you.
Then you have to tell them why you are making such a low offer. You have to sell them on your offer. You need the agent to go into bat for you. A written offer is very powerful to an agent as he/she can take it and show the vendor "this is what the market is saying blah blah" they love that vendor conditioning power.
Write "my offer is made on the basis of":
Current market conditions.......explain how crap they are.
Comparable sales, if they are really bad, list them.
Condition of property...pick on anything you can think about the house, the street, the area....etc
You get the idea...build your case for such a low offer and the agent will present it to the vendor and go into bat for it.
Also, make it time sensitive. eg: "this offer is valid for 48 hours" or whatever.
Tell them you are also looking at other properties and will make a decision very soon.
This has worked for me lots of times and should be good for you in this current market.
Its much better then just ringing the agent and saying "$365k is my offer"
If they knock you back, you can always come back later. As you say, it probably wont sell in the meantime (what ever you do, don't believe there is another offer in this market) and as you say, you have other properties to look at.
The REA's that I've spoken to up to know on the Gold Coast, seem to think that this area is going to be immune from the market falling. But I have been watching it for about 6 months and it has fallen quite alot. I have no actual stats, just that I'm on realestate and domain quite alot everyday. I said to the Agent that I'm not going to get much capital gain out of this house for quite a while, and he said that I will, because the other houses in the street are worth over $500k. I didn't think it was a particularly great street, it's OK, close to shops, schools etc, but none of the houses were that flash.
Where can I get some stats from, he keeps going on about how large the bedrooms are compared to other houses he is selling in surrounding suburbs going for the same price, and how it's such a good deal.
I told him I will walk away if I don't get it for the price I'm prepared to pay, and gave him some examples of similar houses in the area, although not comparing apples with apples, are similar.
Where can I get some stats from, he keeps going on about how large the bedrooms are compared to other houses he is selling in surrounding suburbs going for the same price, and how it's such a good deal.
I told him I will walk away if I don't get it for the price I'm prepared to pay, and gave him some examples of similar houses in the area, although not comparing apples with apples, are similar.
Don't rush, let it sink in with the vendor
The process to get to the right number takes a bit of time. I wouldn't rush it. If you are genuine, then slow it down. My rationale is there has obviously been little or no interest in the property at the prices they have advertised.
Let them see you are interested, go in with the low offers as you have, but let them stew over it. Give them a day ot two to think about it. They need to get to a point where they have rationalised this price reduction. This doesn't happen in an afternoon. The longer you stay in touch the better chance you have of a getting the absolute minimum price they are wanting.
They are needing to sell for a reason (and at a substnatial discount at least in their percpetion). They need to be comfortable with it.
Personally, whilst evan's approach may have some merit, I would simply state price, settlement & any conditions, although if you are low-baliing, an unconditional offer does strengthen your position. That's it, no more. The REA would have heard all these things before.
If you want to get the REA really batting for you, then say this....I need to get it at the right purchase price, to do some renovations/improvements, and in 12(?) months time, I will look at putting at back on the market to sell and I need to make a profit. Given them the hook of another future listing.
As for your question, about someone else, well, yes, anyone can come in and and they can negotiate with them.
The process to get to the right number takes a bit of time. I wouldn't rush it. If you are genuine, then slow it down. My rationale is there has obviously been little or no interest in the property at the prices they have advertised.
Let them see you are interested, go in with the low offers as you have, but let them stew over it. Give them a day ot two to think about it. They need to get to a point where they have rationalised this price reduction. This doesn't happen in an afternoon. The longer you stay in touch the better chance you have of a getting the absolute minimum price they are wanting.
They are needing to sell for a reason (and at a substnatial discount at least in their percpetion). They need to be comfortable with it.
Personally, whilst evan's approach may have some merit, I would simply state price, settlement & any conditions, although if you are low-baliing, an unconditional offer does strengthen your position. That's it, no more. The REA would have heard all these things before.
If you want to get the REA really batting for you, then say this....I need to get it at the right purchase price, to do some renovations/improvements, and in 12(?) months time, I will look at putting at back on the market to sell and I need to make a profit. Given them the hook of another future listing.
As for your question, about someone else, well, yes, anyone can come in and and they can negotiate with them.
Aimjoy,
You get pretty old results on that site. Not real good for comparables.
Buzz,
I only wrote the pricing part of the offer letter. If you have any conditions etc, you can add them as well. But as you stated, its hard to go for a low ball price with conditions attached.
The main point is the offer in writing is a powerful incentive to an agent. He knows you're serious and he wants his comm.
You get pretty old results on that site. Not real good for comparables.
Buzz,
I only wrote the pricing part of the offer letter. If you have any conditions etc, you can add them as well. But as you stated, its hard to go for a low ball price with conditions attached.
The main point is the offer in writing is a powerful incentive to an agent. He knows you're serious and he wants his comm.
OK thanks. It's been on the market since last year. There were some other people looking when we went, but they didn't stay long. I don't think people can see past the condition it's in. It's just mess, untidy gardens etc, can all be fixed with a bit of hard labour and not much cost.
I'll try what you suggest, the Vendor is an investor who has got himself in the sh*t from what the REA has told us.
I'll try what you suggest, the Vendor is an investor who has got himself in the sh*t from what the REA has told us.
No-one can possibly answer that because no-one other than yourself has done any due diligence on the individual title deed in question.
Forget the seller's asking price - as the potential purchaser, what is your due diligence telling you it is worth ??
Unless of course you are intending it to be a PPoR, and then money goes right out the window and becomes irrelevant and you enter the realm of "feelings".
If that's true, that's good info from the REA. The REA may also want to get it off his books quickly otherwise they will lose interest as well and the property gets stale (if it hasn't already).
I guess without knowing any more about the vendors circumstances, you don't know his LVR and what he needs to clear his debt on this property, so that might be something you can try and ask the REA. They might know.
Good luck with it...
....might be the 495K they originally asked for....but surely that has no bearing on anything does it ??
Similar threads
