Opinions please - how would you approach?

[Stella]

Hi
Am looking at 2 prospective PPOR's with different methods of pricing eg. - 1 which is listed as 'offers over $XYZk' & the other as 'high $XYZk buyers' and is listed in only 1 price range which makes me think they expect it to sell within that $100k range?.

There isnt any reason I shouldnt offer under $XYZk on the first place is there if I think that is what it is worth?
Similarly they would almost expect a 'low $XYZk' offer on the second listing wouldnt they?
My main problem is that my offer will be accompanied by a 'subject to the sale of current ppor' clause which takes awy some bargaining power I guess?

Cheers
Stella

 

[Jacque]

Hi Stella

Forget the asking prices. Based on your research and knowledge of the likely values of the properties, present your offers around this. Best of luck- however, I don't like your chances with a subject to sale clause as part of the deal. Think of it from the vendor's point of view. If you're not going to put a time limit on it in terms of settlement then it's not an attractive offer. Far better to at least have your property on the market, and seek properties that will accept longer than normal settlement periods.

 

[Stella]

Hi Stella

however, I don't like your chances with a subject to sale clause as part of the deal. Think of it from the vendor's point of view. If you're not going to put a time limit on it in terms of settlement then it's not an attractive offer. Far better to at least have your property on the market, and seek properties that will accept longer than normal settlement periods.

I figured we would have to nominate a time frame for this to occur in - something like 'subject to unconditional contract by ?? date or is that too risky for us too?

Also thought that we would list our current place with the agent who has the new place (as they will be roughly in the same area) - give them an additional incentive to get a contract on our place asap? Or again is there something I am missing thinking this way?

Cheers
Stella

 

[Jacque]

I figured we would have to nominate a time frame for this to occur in - something like 'subject to unconditional contract by ?? date or is that too risky for us too?

Also thought that we would list our current place with the agent who has the new place (as they will be roughly in the same area) - give them an additional incentive to get a contract on our place asap? Or again is there something I am missing thinking this way?

Cheers
Stella

Hi Stella

It's not a matter of risk - it's more an issue of whether or not any vendor will accept your terms. If you put a particular date on your terms, and you don't sell, it's up to you whether or not you proceed with the sale but at what cost to the vendor? Depending on which state you're purchasing in, some sellers will be more flexible due to the acceptable longer cooling off periods (eg Qld) but others will be reluctant to string it out past the normal 5 business days.
It's really a matter of asking. You never know what they'll say

As for using the same agent who's selling the place you want, that's great for the agent but it's not up to him to accept your terms- only the vendor can decide.

Best of luck with it all

 

[Stella]

Thanks Jacque

Looks like we will be making na offer today. According to the agent, the vendor is open to a subject to sale clause as the vendor hasnt found their next place yet so it may give us a bit of time. Oh well worst they can do is say no in which case we get ours sold asap & finding something else asap.

Cheers
Stella

 

[Perp]

Good on you, Stella. It really depends on the vendor's circumstances, and as you say, in this situation, a "subject to sale" clause doesn't unduly inconvenience them.

I agree with your thinking about using the same agent to sell your property, provided you think they're a good agent (obviously!), and that they are active in the area in which you're selling.

A suggestion: you sound a bit like you're entering these negotiations with the attitude that you're being "difficult" asking for a "subject to sale" clause, and "hope" that the vendors will accept your offer. You need to submit your offer with confidence, and with the conviction that your offer is a good one for the vendor, and that you're sure they'll want to accept it. But if they don't, that's OK, you have plenty of other properties in mind. Your demeanour will greatly influence the advice that the agent gives the vendor, as to whether or not to try and squeeze a better offer out of you.

Good luck!

 

[Stella]

Bit of an update ; met the agent at the house today & threw a (low) verbal offer into the mix.

We discussed subject to sale & sunset clauses (from his point) and I tossed in mention of all of the larger houses across the other side of the main road that are listed at around $50k less than this place. Also threw in how we would have to spend $40k on the place anyway to modernise it - using all the examples he had already given us (tiles & paint etc which we quite liked anyway that he reckoned would need replacing) plus a few more points.

Agent is coming to look at our place Wednesday morning & we are happy to list with him & let him convince/negotiate with the vendor that he can sell our place quickly (30 days and for our price).

Roll on Wednesday!

Thanks for the words of wisdom & encouragement.

Cheers
Stella