Owner with morals sinking a good deal

[belvoir]

Hi everyone

I am at the end of the line dealing with this owner who is selling their property privately and need some help on how to proceed. Overall nice guy but due to a lack of communication (from his end) it looks like I will miss out on the property even though I am offering more...

The owner placed the property for sale with an asking price of $1,350,000. After inspecting and having a nice long chat about recent sales I put in a formal offer (signed contract 10% deposit) for $1,250,000 with favourable settlement conditions as he had to purchase else where. He called the next day to reject and say there was another offer closer to the asking price that was presented to him. During the phone call he also mentioned the 149 Certificate had expired and that his solicitor had to order a new one. I told him that we are interested at the asking price but will wait for the new 149 Certificate before giving a formal offer. I told him to call me once the new 149 had arrived so I can give him the new offer.

Anyways, the next day he calls to say he accepted the other offer and that was the end of it. There has yet to be an exchange as the 149 hasn't arrived but he informed to say that it was over. I told him that I would pay $1,400,000 and he still rejected it saying he didn't want to gazzump the other purchaser. After the phone call I ran down to his solicitors and presented the new contract for $1,400,000 with a 10% deposit. That was Thursday (today's Monday) and he has not returned my phone calls or texts. His solicitor also won't return my phone calls.

I am offering at the least $50,000 more and he still won't entertain the offer.

I really want this property, what do you guys think I should do as a next step to secure this property.

 

[westminster]

You can't force him to sell to you.

If he decided to accept that offer and not yours then I really think there is nothing much you can do.

If they aren't returning your texts/calls then they really don't want to.

 

[depreciator]

It's not always about the money.
12 years ago when I sold my previous PPOR I had lots of interest. A bloke made a low offer that I rejected, and then another buyer made an offer close to the asking price which I accepted.
The first bloke came and knocked on my door that night and told me he would pay more than the other buyer and that I could easily weasel out of my commitment.
I told him I couldn't do that sort of thing. He told me I was crazy. I told him he and I were obviously very different. The conversation went downhill then.

 

[DaveM]

Sorry but you chose to play the $100k under asking card and got outbid. The owner is happy with the other party.

 

[pinkboy]

How dare the vendor have morals!

I really want this property, what do you guys think I should do as a next step to secure this property.

Given the breakdown in communication with the vendor, this might not work, but can you get the details of the current purchaser? You might be able to offer them $1.5mil and they might see the $100k as a quick way to make some cash without paying the SD etc (a flip I guess?). That is, if they haven't emotionally set themselves on the property.


pinkboy

 

[belvoir]

I guess you can close this thread. Just got word that the owner exchanged using the old 149 certificate....

There were two owners on this property and one was dealing with the sale, my guess is the one dealing with the sale was getting something on side from the new purchasers.

 

[Kinnon Bell]

my guess is the one dealing with the sale was getting something on side from the new purchasers.

Or, like you said, they have morals and are honouring their word.

 

[nhg]

The thread title could read:

"Owner with morals, one step closer to a better tomorrow."



For some constructive comments:
As previously mentioned, find out who the new owners to be are and offer them the increased amount.

 

[Propertunity]

I guess you can close this thread. Just got word that the owner exchanged using the old 149 certificate...

You can't exchange using the old 149 certificate, it won't be a valid contract.

That aside, there was something else going on here, that you are just starting to see. It's not always about the money. Keep looking - there are always more houses to buy.

 

[marg4000]

After inspecting and having a nice long chat about recent sales I put in a formal offer (signed contract 10% deposit) for $1,250,000 with favourable settlement conditions as he had to purchase else where. He called the next day to reject and say there was another offer closer to the asking price that was presented to him.

Could be that his asking price was extremely fair (very likely considering he sold at a price close to it) and your lower offer offended him.

Sometimes you only get the chance to make one offer.
Marg

 

[wategos]

Perhaps the other buyer offered extra cash on the side, so their offer was higher than you think. Reduces the owners capital gains tax bill as well.

 

[wylie]

As someone who has just experienced a lowball offer (and refused it), I would have sold it to just about anybody else.

The title of the thread suggests the owner is sinking a good deal, but perhaps he is happy with a price that is not quite as high as your "second" offer, and more happy not to deal with you. People do get offended by lowball offers, and it sounds like this has happened to you.

If I really, really loved a house, I wouldn't risk lowballing, just in case this exact scenario played out.

 

[Dazz]

asking price of $1,350,000....I put in a formal offer (signed contract 10% deposit) for $1,250,000

So you took an educated gamble that saving $ 100,000 off the asking price was worth the slight risk of losing the chance of owning the property.

Woops - looks like the risk came through.

I ran down to his solicitors and presented the new contract for $1,400,000 with a 10% deposit. I really want this property

No you didn't. Your actions speak waaay louder than your words. You were quite prepared to risk losing the deal to save 100 K.....and you did !!

what do you guys think I should do as a next step to secure this property.

Nothing. Forget about it.

Hopefully the Seller sticks to their word and sells to someone else.

The only thing I can suggest, which is what all real estate agents suggest, is put your highest and best offer in to start with.

With more advanced methods of sale like Offer to Purchase and EOI, the Buyer only gets one crack at the cherry, so you very quickly learn to analyse what it is worth to you, and then put your best foot forward.

You've tried to do some fancy two step shuffle and tripped over your own laces and landed flat on your face.....and hence your dance partner has turned around and started doing a tango with someone else.....and now you are asking the forum how can you can pick yourself up, dust yourself off and still try and look cool and try and attract the same dance partner back when you've got egg all over your face.

To suggest there is something wrong with your dance partner after you've inflicted self damage and come-a-cropper is the height of rudeness.

It ain't gonna happen Romeo. Forget about it. She's gone.

 

[pinkboy]

Dazz, do you take analogy requests?



pinkboy

 

[belvoir]

So you took an educated gamble that saving $ 100,000 off the asking price was worth the slight risk of losing the chance of owning the property.

Woops - looks like the risk came through.




No you didn't. Your actions speak waaay louder than your words. You were quite prepared to risk losing the deal to save 100 K.....and you did !!




Nothing. Forget about it.

Hopefully the Seller sticks to their word and sells to someone else.

The only thing I can suggest, which is what all real estate agents suggest, is put your highest and best offer in to start with.

With more advanced methods of sale like Offer to Purchase and EOI, the Buyer only gets one crack at the cherry, so you very quickly learn to analyse what it is worth to you, and then put your best foot forward.

You've tried to do some fancy two step shuffle and tripped over your own laces and landed flat on your face.....and hence your dance partner has turned around and started doing a tango with someone else.....and now you are asking the forum how can you can pick yourself up, dust yourself off and still try and look cool and try and attract the same dance partner back when you've got egg all over your face.

To suggest there is something wrong with your dance partner after you've inflicted self damage and come-a-cropper is the height of rudeness.

It ain't gonna happen Romeo. Forget about it. She's gone.

Way to go with the cherry pick, you forgot the detail about the 149 Certificate....

However, I enjoyed reading your post and there probably is some truth to it.

 

[Terry_w]

You can't exchange using the old 149 certificate, it won't be a valid contract.

That aside, there was something else going on here, that you are just starting to see. It's not always about the money. Keep looking - there are always more houses to buy.

I beleive it could still be a valid contract, but not binding on the purchaser. They could still pull out up to a certain time.

 

[A Jeremy]

There are always more properties.

Pretend it was never on the market and move on.


Jeremy