I was wanting to get some opinions on the rules of negotiation. Once you have submitted an offer when is it ok to contact the agent to get an update. Say I submitted an offer this morning and have not heard back from the agent is it ok to call them? In particular if you believe the property will sell quickly and there is a lot of interest would you call or would you wait?
rules of negotiation
- Thread starter karina
- Start date
If you have submitted an offer (in Queensland that would be a contract) then your agent should be keeping you updated with what is happening.
If not, I would be worried he is using your offer to get another offer up higher.
If you have not heard by tonight, or he doesn't have a good reason why the offer has been accepted or not, or countersigned at a higher figure (in which case you will need to consider whether or not to raise your offer), then I would keep on him. Perhaps the people are not able to be contacted during today, but he should be trying to get the offer presented, unless he is playing games.
If not, I would be worried he is using your offer to get another offer up higher.
If you have not heard by tonight, or he doesn't have a good reason why the offer has been accepted or not, or countersigned at a higher figure (in which case you will need to consider whether or not to raise your offer), then I would keep on him. Perhaps the people are not able to be contacted during today, but he should be trying to get the offer presented, unless he is playing games.
I would not contact them at all, unless you were really not willing to let the deal go.
I guess it totally depends on the strength of the market and whether or not you feel like missing that property means you've 'missed the boat' altogether or whether there's a similar deal just around the corner.
Silence is often an under-rated negotiation tool.
I guess it totally depends on the strength of the market and whether or not you feel like missing that property means you've 'missed the boat' altogether or whether there's a similar deal just around the corner.
Silence is often an under-rated negotiation tool.
If you contact them is makes you look a little too eager. You have to be prepared to walk away, or atl east make it look like you're prepared to.
When making an offer I also give odd amounts as it makes it look like you done some serious calculations. ie $220,400. instead of 220 flat.
When making an offer I also give odd amounts as it makes it look like you done some serious calculations. ie $220,400. instead of 220 flat.
Good point tbw, although if you go too far (i.e. $221,457.82) on your first offer, it might cause the vendor to think you're set on an exact figure and consequently ditch you completely instead of coming back with a counter-offer.
I do like the Queensland system where you put your signature on the contract, and the vendor either signs it (that day) or countersigns.
I understand about not wanting to appear anxious, but in Queensland, if I put my signature on a contract, I want to know that day whether I got it or missed it, or need to up my offer.
In NSW, do you put in a letter type offer and they agree or not? If so, and the vendor agrees to your price, what is to stop someone gazumping you before the actual contract is signed, or is the letter binding?
I understand about not wanting to appear anxious, but in Queensland, if I put my signature on a contract, I want to know that day whether I got it or missed it, or need to up my offer.
In NSW, do you put in a letter type offer and they agree or not? If so, and the vendor agrees to your price, what is to stop someone gazumping you before the actual contract is signed, or is the letter binding?
Even if the vendor (in NSW) agrees to your price he is not committed to your offer until you have exchanged contracts, in order to do so you risk 0.25% of the purchase price, so you have 2 options
1) pay the 0.25% of the purchase price and use your 5 day cooling off period to get pest , building and finance organised. 5 days is not long enough in my opinion for unconditional finance with most banks.
2) agree on a price and then start doing pest , building , finance, however you run the risk of another offer coming in and losing the property + all the money you have spent on inspections etc
3) I believe there is a 3rd option, if the agent and vendor agrees and that is to offer a "holding deposit" to effectively take the property off the market while you do your due diligence but of course you are relying on the goodwill of the agent and vendor, nothing stopping them from accepting another offer.
So basically NSW is tough for buyers. QLD and WA contracts are much easier for buyers as they enable you to take the property off the market but still have walkaway clauses without losing any money
1) pay the 0.25% of the purchase price and use your 5 day cooling off period to get pest , building and finance organised. 5 days is not long enough in my opinion for unconditional finance with most banks.
2) agree on a price and then start doing pest , building , finance, however you run the risk of another offer coming in and losing the property + all the money you have spent on inspections etc
3) I believe there is a 3rd option, if the agent and vendor agrees and that is to offer a "holding deposit" to effectively take the property off the market while you do your due diligence but of course you are relying on the goodwill of the agent and vendor, nothing stopping them from accepting another offer.
So basically NSW is tough for buyers. QLD and WA contracts are much easier for buyers as they enable you to take the property off the market but still have walkaway clauses without losing any money
In NSW there is no need for formal written offers, verbal are accepted and (should be) passed on. I prefer to email the agent......this way there is (dated) evidence of your offer. This should ensure you are in the picture as any agent that does not give all genuinely interested buyers a last bite prior to sale, would not be working on their vendors interest!
I do the same thing. I put an expiry date and time on all my offers, usually 24hours.... 48 hours if I am feeling generous.
Beat me to it.
I give 'em 2 days then the offer expires.
And don't chase them up as others have said.
