Reasons given for selling

[dwyerfam]

From: Danny Dwyer


Just to follow up on that "Beating those Sneaky Real Estate Agents", can anyone give me hints/quotes on some of the reasons given for the vendors who are selling their houses and do you believe them to be "truthful" reasons?

I get a bit sus when real agents gives me some sort "broad or bullish reason the vendor is selling". e.g. "oh, he over committed and he has other IP's for sale too", or "he's just separated from his wife" etc.

On the other hand, the agents can only pass on what the vendors have told them. So it could be the vendors who 'mislead' the agents, who in turn tell us. I guess this is where "due dillicent" comes in and that you need to verify as much as one can about your purchase.

Danny D.

 

[Steve Navra]

Reply: 1
From: Steve Navra


Hi Danny,

Who can ever know what goes on in the mind of others?

Truthful or otherwise, it is probably best to act on the facts. I think you correctly summed it up when you said 'due diligence' comes in to it.

Irrespective of agents 'value opinions' or reflected market sentiment, check out the achievable rent against the yield in the area and base your value judgement on that.

That is if the 'rental value' is less than the asking price it might be a valid purchase.

Regards,

Steve

 

[asy]

Reply: 1.1
From: Asy .


OK, I give up, I gotta comment, )

I always thought this was one of the most interesting things about selling RE. In probably 90% of cases the prospective purchasers asked, "Why are they selling". My stock standard answer was "Because they no longer require the property".

I never knew of a purchaser who backed out of a deal because the vendor was moving house, rather than getting a divorce.

I know about the D's (Death, Divorce, Debank) but I ask you, will your offer differ appreciably because the vendors are selling simply because they want to, not because they have to?

Yes, I can hear you all yelling "But they are more motivated if the D's are involved!!!". This is not necesarilly true.

Sometimes they are more motivated if they simply want to move... Emotionally they may be attached to another property already. The agent may know this, but if he tells you that you can make a low offer because the vendors are already committed elsewhere, he is breaching his professional conduct regulations, and also possibly losing a listing from you. (I know I wouldn't deal with such an agent). Sometimes when the D's are involved they have time to get their price. (Granny dies and leaves them with an unencumbered property... do you think they are gonna sell to you just because they fall into the "desperate" category, by definition?)

Anyway, that's my ramble. Perhaps I will think of more and post another, but that'll do for now...

asy

"Diplomacy is saying "nice doggy" until you find a rock"