Sick of making "rubber" offers

[CAD Guy]

Hi all.

We've been trying to buy an IP for a while now, but it seems that every time we find the "perfect" IP and place an offer, the agents bounce our offer off several other interested parties (then bounce their higher offers off us), resulting in a mini-auction and us missing out on the sale. On at least one instance I know (through friends of the vendor) that if the agent had of taken our offer to the vendor instead of the other buyers the price would have been accepted.

How can I stop this happening? What methods do you more seasoned investors use?

 

[Bill.L]

Hi all,

When we have made offers on property, because we are looking and prepared to buy other than the perfect one, we put in a time limit on our offer(ie. I need an answer by tomorrow lunchtime as I'm after this other property if this one doesn't work out). Of course you have to be genuine and if the REA says that it is not possible to have an answer by then, without even trying, then just say don't worry about it to the REA and walk away.

Last year while purchasing in Brissy, a negotiation occurred while the vendor was on holiday in Ireland!!! and there was never more than 24 hours between the bid and counter offer.

Out of curiosity, which area are you looking in?

bye

 

[Jakk]

G'Day CAD Guy,

While inspecting the property, if the vendor is present, speak in a loudish voice and say to the Agent "Let's get back to your office and get this down on paper, I am real keen to business on this house/unit/flat/property"
You can bet your sweet bippy that the vendor will be calling the agent within the hour to find out what your offer is, if not sooner.

In one case where I did this, there was a message from the vendor for the Agent to call him, left at his office during the time it took us to get back there.
While I was still at the Agents office, both the vendors rolled up and were waiting in the waiting area to see the agent.
Using my great powers of deduction, I figured there was a real motivation to sell.

Creating this sort of situation puts the pressure on the Agent to "deliver the goods" QUICKLY...........therefore takes away from the Agent, the luxury of time to contact every man and his dog that has shown even a slight interest in the property in order to get a few more dollars.

regards

 

[Kristine..]

G'day CAD guy

A friend of mine, wanting to buy a house to live in, found their 'dream home' which was at the absolute top of their purchasing range.

Naturally, she told the agent that her offer was all she could afford, and he told her that there had been two other interested parties. She put the offer in writing, again stressing that it was her best offer.

When the property was sold to another buyer, she remonstrated with the agent, saying 'Well, I would have paid that, but you didn't give me the chance to increase my offer".

Well, hello! Hadn't she just told him that was her best offer? He took her at her word.

When negotiating, we must be aware that whatever we say can, and will, be used in evidence against us.

If we say that the offer is our 'best', then complain later that our 'best' was more, we cannot blame the agent who is, after all, working to get the best result for the vendor.

There is no easy answer in the negotiating process. Perhaps buying at auction is the most reliable way for you to purchase, as it is sold to you on the fall of the hammer.

If properties do not usually go to auction in your area, and you have to deal with the private sale / private auction process / sealed envelope highest offer one chance only process, you will need to revisit how you want to buy.

By 'how', I mean if you only want to buy at a bargain price, you are going to get gazumped particularly is stock is in short supply in you area / in your price range.

I have missed out on various properties over the years, some which, with hindsight, I was very glad to have missed out on.

Keep trying, the deal of a lifetime comes around every Tuesday. Sometimes the compromise property can turn out to be a diamond in disguise.

Good luck

Kristine

 

[Splinter Wood]

Hi CAD guy,

Some good advice above.

Another thing you can do is to ask to go back with the REA and ask if you can sit with him while he calls the Vendor.

Spend some time with the REA and let them know you are serious without becoming a PITA (pain in the A.@#&%$) of course.

Ask what they think would buy the place, ask how quickly they want to sell and settle, ask why they are selling.

Time limits sometimes work well too especially if you really do have another one ready to sign.

Also be ready to move another inv\ce as it's usually worth it in the end.

Good luck.

SW