Putting offer on - how long should it take owner to get back?

[Kael]

Hi all,

I'm currently in the negotiation stage of purchasing a first home - we put in an offer, which was outright rejected and then we made another offer. We were then told that the owner was open to negotiation and as such, we started negotiating.

We've put in another offer which we can't really go over now, and we have told the real estate agent about this and he's advised the owner of our offer.

My question is, how long does it normally take an owner to make up their mind about an offer? I know it depends on the property, owners and the price, but it's been almost a week.

We have other properties which we are going to look at and we have another property we might make an offer on too.

Any thoughts are appreciated

 

[DaveM]

Call the agent tomorrow and tell them you saw something else this weekend, and if the vendor has not accepted then you will be pursuing another property. Try to get a yes/no.

The property I just bought was a week to accept and a month to exchange after offer due to a horribly slack vendor.

 

[JWR]

The paranoia involved in not knowing what's going on can be very hard to take - especially if its your first property.

Luckily on my first property (for my paranoia's state) I had no idea what I was doing so after my offer was accepted and I didn't sign the contract until finance was pre-approved (around 3 weeks later since I had to sort lots of paperwork) - the agent must've thought I was the one looking for better deals but I thought if I signed and finance failed I would still have to buy the house (which agent informed me wasn't the case - I was just ignorant)

If there are lots of properties you like make low offers on all of them. Then it becomes less emotional and more likely you will not go up by heaps and pay over the odds.

But after its been accepted its not until you have the signed contract from the vendor when you truly can let your guard down.

I had a property accepted 2 weeks ago after a couple of days negotiating (for a really good price) but then it took 11 days for me to receive the vendor's signed contract. I was convinced there was another offer/s since the accepted one from me was so low (and I couldn't believe I got it for that price either.)

So there is no time limit unless you make one (i.e. 48 hours) - but then you risk ******* off the agent/vendor so I don't do that generally.

I have been screwed many times by agents where my offer has been accepted but someone else comes along before the vendor signs the contract. And I haven't yet found a solution to get the process completed faster - except to keep on pestering the agent - but its really up to the vendor who could take a while to think about it or take a while in the hope of higher offers.

Look for others and make low offers on them as a back up plan!
Hope that helps

 

[Rolf Latham]

We've put in another offer which we can't really go over now, and we have told the real estate agent about this and he's advised the owner of our offer.

You would hope thats the case...................

More and more Im seeing clear evidence that owners arent being passed on offers that dont support the listing agents views within the first 1 to 4 weeks of the campaign, the outright rejections arent from the owner, they are grunting noises made by the agent.

If you really want to have some fun, find a way to get around the agent to the seller and see if the agent is in fact doing what they say they are doing

t
arolf

 

[twobobsworth]

May depend on the state it's in but I've never waited longer than 24 hours.

 

[Rolf Latham]

So there is no time limit unless you make one (i.e. 48 hours) - but then you risk ******* off the agent/vendor so I don't do that generally.

depending on the state, and the form of offer, this can lead you into strife.

Id always condition an offer with a sunset.

ta
rolf

 

[Kael]

Thanks everyone for telling me all this! I greatly appreciate it!

The property's been on the market since Mid December, this is also the second agent it's with... But it's an empty property, so I don't know if the owner has any holding costs. But I guess we'll see what happens :/

 

[DaveM]

Is it a home for yourself or an investment?

 

[Kael]

Is it a home for yourself or an investment?

Myself - sorry, should have mentioned that. I already have an investment property in Melbourne, but this will be my first home that I will live in

 

[Aaron_C]

Thanks everyone for telling me all this! I greatly appreciate it!

The property's been on the market since Mid December, this is also the second agent it's with... But it's an empty property, so I don't know if the owner has any holding costs. But I guess we'll see what happens :/

Kael - the 'holding costs' are ignored by vendors all the time. They are more focused on the sale price - regardless of how long it takes to achieve that. Keep that in mind when you are negotiating.

 

[Terryw]

It should take from 5 min to an hour if there is one owner. If more than 1 then they have to have a conference and think about it but even then 24hrs should be enough. Email then and reduce your offer by $1000 and say it is an offer open unit 5pm tomorrow.

 

[vaughan]

It should take from 5 min to an hour if there is one owner. If more than 1 then they have to have a conference and think about it but even then 24hrs should be enough. Email then and reduce your offer by $1000 and say it is an offer open unit 5pm tomorrow.

I've got an offer on a property that is deceased estate and it takes over a week to get an answer. I know the agent is trying hard but I think the estate is being fought over.

 

[Kael]

Owner still hasn't made a decision apparently... Thinking that if I don't get a response soon that I may make an offer on a different property. I can do that, can't I?

 

[Peterw]

It should take from 5 min to an hour if there is one owner. If more than 1 then they have to have a conference and think about it but even then 24hrs should be enough. Email then and reduce your offer by $1000 and say it is an offer open unit 5pm tomorrow.

Yes, I think I can see how that will work to get an outcome ....

 

[Jen_PFR]

Owner still hasn't made a decision apparently... Thinking that if I don't get a response soon that I may make an offer on a different property. I can do that, can't I?

Can you not communicate with the agent in writing (email maybe?) and state that you formally rescind your offer given you have had no response and wish to pursue other properties? Not sure whether this is ok in your state - locals may wish to chip in here!
I must admit once we get to the point of formally negotiating back and forth on price, we start to put timeframes on our subsequent offers of 24 - 48 hours depending on stuff like weekends, etc. It just gives us that certainty. We're also quite happy to tell the agent that the reason we do this is because we're looking at another property. Sometimes it's true, sometimes it isn't.

 

[pennyk]

Owner still hasn't made a decision apparently... Thinking that if I don't get a response soon that I may make an offer on a different property. I can do that, can't I?

Absolutely.. you are under no obligation until you sign a contract.....

But I would also be letting the agent know that you have a timeframe.. you need to put some pressure on them

 

[Jacque]

My question is, how long does it normally take an owner to make up their mind about an offer? I know it depends on the property, owners and the price, but it's been almost a week.

We have other properties which we are going to look at and we have another property we might make an offer on too.

Any thoughts are appreciated

Hi Kael

You answered your own question with the words IT DEPENDS. The best advice I can give is to gather as much information as possible about the vendors situation, in order to understand and strategise here.

Vendors range from highly motivated "sell it tomorrow as I desperately need the money to settle on my recent interstate OTP purchase/divorce/business/gambling debts etc" through to a vendor who is "testing the market" to see if they can reel in an emotionally (and stupid) buyer for a ridiculous above-market price. Some vendors are quick to make up their mind whilst others take their sweet time

Having dealt with a myriad of vendors and various "motivations" over the last 20-odd years I can tell you there is no "one method" that works when it comes to offers. You need to work with the facts you can glean, come up with a strategy that suits based on your needs, budget and motivation and go from there. Sometimes trying to "play the game" or be too "smart" results in heartbreak and disillusionment with the entire purchasing process.

The other tip I can provide is not to make it personal. Remember that the agent, as nice or as nasty as they can be, is simply a conduit between you and the property. Don't make the mistake (which many buyers and sellers do) of allowing personal comments, feelings and actions get in the way of how you eventually secure the sale. If a particular agent is being uncooperative or unresponsive there is nothing to say you can't approach the vendor directly (we usually do this via their solicitor or conveyancer) if you believe this will assist.

Best of luck with it all

 

[Kael]

I'm loving how much help I'm getting here - thank you so much everyone!

Jacque, how do I contact them directly though? :s Like, how do I find out who owns the property and their details?

 

[Jacque]

I'm loving how much help I'm getting here - thank you so much everyone!

Jacque, how do I contact them directly though? :s Like, how do I find out who owns the property and their details?

Get a copy of the contract- all details on the front page.
Any property you are ever interested in, even before you submit an offer, ask for a copy. The large majority of agents can email these to you asap.

 

[Kael]

Get a copy of the contract- all details on the front page.
Any property you are ever interested in, even before you submit an offer, ask for a copy. The large majority of agents can email these to you asap.

Greatly appreciated! Thank you so much!