Opinions on offer, please.

[Jake D]

Hey guys,

Just looking for opinions on an offer.
4x2 house on 600ish sq.m
asking price recently dropped from $385k to $370k

The house is good enough, but i really like the location. Looking to move in in about 12 months, but like the idea of locking it down right now, current tenants happy to stay.

I'd be happy to pay $350-$360k, but if i buy now and rent it out, it will cost me about $10k in holding costs. (Cash - NOT allowing for tax deductions)

How receptive should I assume the vendors would be to a $340k offer? I could settle at their convenience.
Is it worth making the offer, or should i just be patient and spend the next 12 months continuing to monitor the market and looking for something closer to my price, or closer to my time frame?

 

[Jake D]

I should add -
Their revised asking price of $370k is not out of line with others in the suburb, just slightly out of line with my (self imposed) serviceability and my desire to get a bargain.

Also, If I was more in love with the house itself, I could afford the higher price and the $10k holding cost.

 

[Ergophobia]

In the current market, I would be holding out for a real bargain.

Pitch your offer at a price your be stoked to get it for and keep looking

remember, youll probably get one shot at the current market... make it a good one

 

[laurieload]

Why don't you make the low offer and see how you go? You can but try..who knows the vendors circumstances for selling?

 

[JWR]

Offer $300k

 

[Propertunity]

How receptive should I assume the vendors would be to a $340k offer? I could settle at their convenience.

You should NEVER assume anything. Why don't you find out what they want, where they're going, what T&Cs they want etc BEFORE even thinking about making an offer?

At least then you have some chance of a win-win and not some vague stab in the dark and see if you kill something.

 

[Pa1nter]

I agree with Propertunity,
Lets hope you haven't ruined your chance to get it 80k cheaper by being to keen


First I would get a property report and find out how much they paid for it,they may not be able to sell it cheap.

They might own ten other properties and not need to sell?

But they might only have a 290K mortage and then a 300k offer is one to start with.You can always go up in 10k increments and then settle around 350K

This information is so powerful, you can determine just by it, if it is possible to get a bargain.

 

[Jake D]

I agree with Propertunity,
Lets hope you haven't ruined your chance to get it 80k cheaper by being to keen


First I would get a property report and find out how much they paid for it,they may not be able to sell it cheap.

They might own ten other properties and not need to sell?

But they might only have a 290K mortage and then a 300k offer is one to start with.You can always go up in 10k increments and then settle around 350K

This information is so powerful, you can determine just by it, if it is possible to get a bargain.

Thanks for all the responses so far.

At this stage the only contact I've had is a reasonably vague email to the RE agent and an anonymous walk through at an open. So no chances ruined.

 

[Jake D]

First I would get a property report and find out how much they paid for it...

Like from onthehouse.com.au? What if it's not listed? Does that mean there isn't sales history? or I have to try somewhere else.

 

[JWR]

onthehouse should have it

If not RP Data - go to loans.com.au and request a free RP Data report - you will have to speak to a mortgage rep but its better than paying $50!

 

[Jas]

I would have a chat with the real estate agent. You can find out a lot of the information by asking.

"If I were to get a building report on this place, what is it likely to tell me?"
"How'd you arrive at this figure as the house's value"

And so on.

It's in their interest to give you informative answers to your questions - the agent wants a buyer for the property and will work to get one.

Jas