We're looking at buying a new home, however over here in Perth most of the homes we are interested in are overpriced and have been on the market 6 months plus. Why do vendors believe that even though their property has been on the market for a long time someone will come along and pay full price. We have tried to put in some offers and the agents won't even write them up!! At what point do vendors realise that any offer is better than no offer.
Unrealistic vendors
- Thread starter hip hip horay
- Start date
People who have their houses on the market for these sorts of lengths of time are clearly not in a hurry to sell, and won't give the house away.
Maybe offer closer to their price with a short settlement, or move on.
There is a bloke who lives in the next court below us; almost exactly in line with our house.
Good bayviews, low side of the court (backyard privacy) etc...he has been putting his house on the market every year in spring for several years now.
Still hasn't sold, he doesn't care - just goes fishing for a bunny every spring - and the price keeps going up every year. Eventually he'll go to a nursing home and the kids will sell it in a week.
Maybe offer closer to their price with a short settlement, or move on.
There is a bloke who lives in the next court below us; almost exactly in line with our house.
Good bayviews, low side of the court (backyard privacy) etc...he has been putting his house on the market every year in spring for several years now.
Still hasn't sold, he doesn't care - just goes fishing for a bunny every spring - and the price keeps going up every year. Eventually he'll go to a nursing home and the kids will sell it in a week.
For who? They owe you nothing.
If they have instructions by the vendor to disregard offers under $x, then the agent can ignore those offers and not pass them on.
You could get the owner's name from the title and send them the offer direct.
try an add Cashed Up Buyer -- Ready To Sign Now !
That's only if you're a cash buyer.
Where are you buying? In the areas I've bought for clients the last couple of months, the opposite is true.
If the property has been sitting on the market a couple of months with no price adjustments, I would say MOVE ON! It is not worth wasting your time when there is so much more other good stock!
In terms of negotiating with a realistic vendor, I have used a few of the following strategies (and i have many more):
- Never use round numbers, (i.e. $500,000) that is just a starting price, I always offer strange numbers $501,288 - it looks like i have an 'exact' value.
- Don't be afraid to use the words "firm" or "best possible offer" or anything else you can think of after the price (i.e. $501,288 FIRM).
- Multiple offers, so write up one offer with a particular price and terms and then another offer with a particular set of terms. (i.e. Offer A $501,288 with finance clause, building inspection, long settlement etc. Offer B $481,397 cash buyer, short settlement and will take the property as is etc.)
- Don't be afraid to ask what they WANT. So i always ask, "besides price, what would make this offer more attractive?" Sometimes I get, "well it would be great if we could lease back from the buyer for 6 months." This can be a great negotiation tool.
Anyway, I hope that helps, I could spend all day on negotiation.
Where are you buying? In the areas I've bought for clients the last couple of months, the opposite is true.
If the property has been sitting on the market a couple of months with no price adjustments, I would say MOVE ON! It is not worth wasting your time when there is so much more other good stock!
In terms of negotiating with a realistic vendor, I have used a few of the following strategies (and i have many more):
- Never use round numbers, (i.e. $500,000) that is just a starting price, I always offer strange numbers $501,288 - it looks like i have an 'exact' value.
- Don't be afraid to use the words "firm" or "best possible offer" or anything else you can think of after the price (i.e. $501,288 FIRM).
- Multiple offers, so write up one offer with a particular price and terms and then another offer with a particular set of terms. (i.e. Offer A $501,288 with finance clause, building inspection, long settlement etc. Offer B $481,397 cash buyer, short settlement and will take the property as is etc.)
- Don't be afraid to ask what they WANT. So i always ask, "besides price, what would make this offer more attractive?" Sometimes I get, "well it would be great if we could lease back from the buyer for 6 months." This can be a great negotiation tool.
Anyway, I hope that helps, I could spend all day on negotiation.
interesting points.
I would see straight thru this odd number thing tho. If it was $503,000 it would be ok, but really $501,288? Is the guy trying to say he threw in his kids pocket money? is he of substance?
Good advice Kent Cliffe all round however i disagree with one point, the odd numbers. I had someone offer a seller that before- response i got back was "tell the buyer to stop being a ******** and start being serious."
Vendor took it as an insult that he thought a buyer was playing games with something that to him was a serious property. Buyer ended up buying it for $45,000 more than his first offer. ended on a nice round number at $740,000.
Agree with offers like $503,000, but when you get into EXACT dollars, you just look like a tool.
Vendor took it as an insult that he thought a buyer was playing games with something that to him was a serious property. Buyer ended up buying it for $45,000 more than his first offer. ended on a nice round number at $740,000.
Agree with offers like $503,000, but when you get into EXACT dollars, you just look like a tool.
I disagree. An unrealistic bargain basement offer is just the same as no offer at all. The vendor isn't going to sell in either instance.
I agree that some vendors can be unrealistic, but I found when we were trying to sell a house recently, that buyers can be equally as unrealistic.
Look for a nice house at a good price, rather than trying to spot a bargain. If you go looking for a 'bargain', you won't by anything. Because in the majority of cases, the vendor will tell you to sod off.
I totally agree ... I personally hate odd numbers and even detest ads stating (ie)$499,900 ... just say you want $500,000 and stop mucking around!
I would want to see every offer no matter what or how silly. Some vendors get really shirty when they get a low offer. My attitude is to look at a low offer as starting point and an opportunity to negotiate up.
I think hip hip hooray is long gone. What is with these posters who post once and then run disappear
Well a lot of people don't visit this site that often so they tend to forget they've even asked the question and/or which site they posted on.
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