Submitting two offers at once

[RedCat]

Hubby and I can't decide between two IPs in the same area but apples and oranges in comparison. Last night we thought 'why not buy both'? We don't care either way if we get both or one or neither as something else will always come along. I figure this puts us in a reasonable negotiating position?

PROPERTY ONE
Has one written $182K and 2 verbal offers (amount unknown). Vendor wants $189K - was originally advertised for $205K. Has a good tenant until April 2010 who wants to stay. Have told REA we'll put in an offer on Monday. Thinking we should just offer the full asking price of $189K to increase chance of securing the deal, considering other offers are verbal only. Thoughts? If we offer full asking we won't be negotiating further if REA tries to get above asking price.

PROPERTY TWO
Owner-occupied. Was renovated and vendor originally over-estimated price at $269K. Price then reduced to $249K. We put in verbal offer at $220K on Friday and were told "we are lucky as vendor will take it off the market at $239K". We could increase to $230K and that seems like the obvious halfway point but obviously I need to try get it for less. Again, we can take it or leave it as another will come along. DO we submit a final offer or keep beating around in negotiations?

Both REA know we are looking at 2 properties and neither know we can put in offers on both. Any and all advice greatly appreciated!

 

[JoshyBoi]

Sounds like your playing it right!
As many have in their tag lines 'there's the deal of the year, every day'
bargain hard and if it doesn't work out, wait for the next =)

 

[Bargain Hunter]

Make the offer's that you want, do not be swayed by the REA's. If as you say you want both and the offers are accepted then a job well done.

 

[RedCat]

Thanks all. Will let you know how it goes. No biggie either way as something better will inevitably come up if I miss out.

 

[WinstonWolfe]

1. Put sunset clauses on both.
2. Consider putting another clause on both saying "subject to acceptance of offer on other property"

Keep in mind this backfired on me once when I put offers in on two houses with the same REA. The prig thought I was only good for one and took someone else's offer for one of the houses to the vendor before he let me up my offer. I didn't use the second clause as I could buy both if accepted.

 

[RedCat]

I don't need the second clause either as we're happy to buy both if our offers are accepted and happy to have neither too.

I have requested in the offer, a reply within 24 hours (will be sent tomorrow) because I have an offer on another property.

Both are listed with different REAs so I figured they would move quickly, thinking we can only buy one of them and it also lets them know we're not desperate for their particular property. Not sure if that will help or not but I guess I'll find out soon enough!

 

[RedCat]

Missed out on both. Didn't even get the offers in. Both went for more than I was willing to pay. Note to self: move faster next time. Note to self: Don't feel bad and don't ever pay more than you think it is worth.

 

[JoshyBoi]

Ahh well, always next time!

 

[Player]

Next..................

Missed out on both. Didn't even get the offers in. Both went for more than I was willing to pay. Note to self: move faster next time. Note to self: Don't feel bad and don't ever pay more than you think it is worth.

Thanks for sharing your situation. As you've done, never go over your walk away price. As for the timeliness of your offers.........I always strike fast when all my diligence has been satisfied. I rarely (unless they are proven to be interstate or difficult to reach) give vendors more than several hours till the offer lapses. Create a little urgency and also make the rea work for the deal.

Next ..............

 

[RedCat]

Yes. I've definitely learnt that for next time. Do the DD BEFORE we see the property so we can offer on the spot. That was the mistake we made. I like the idea of giving only a few hours for the vendor to reply. Will create that 'urgency' next time for sure. Will report back too of course.