Upping your offer?

[TMNT]

so having a chat with one of my buddies over dinner, and we were talking about negotaiton strategies, he says I did it wrong, I reckon I did it right, whats everyones opinion,

fairly new property on the market,

I put in an offer for $240k 30 days, no conditions, which is pretty much land value give or take $10k (agents all have different ideas of what the land value is ), house is declapid, termites, strucutral damage, internally needs gutting, house is falling apart

however, agent has got back to me, and said there is an offer of $250k+ with 21 days, igot the vibe its around teh $255k markish, however vendor wants more

im prepared to pay up to $250k max,

so I said to the agent, I have a bit more room to move, give me a call in two weeks if its not sold,

now that to me gives the agent an understanding that $240k is not the highest I go, yes he could be bluffing, but who knows

my friend on the other hand says, you should have been firm and said no more then $240k, call me in two weeks if its not sold

what does everyone think>

 

[gottabespotless]

For mine, your friend is right. I would have offered the $240 000, given them 24 hours to make a decision and then moved on to make offers on other properties.

 

[TMNT]

For mine, your friend is right. I would have offered the $240 000, given them 24 hours to make a decision and then moved on to make offers on other properties.

well, the thing is teh agent did tell me prior that the vendor works in a mine and is hard to get in contact with,

this property is just one of many that im looking at so its not an emotional buy for me, but my main concern was excluding myself out of the 'race' from teh agents perpective,

it happened to me on my first ever offer in all those years ago,
I told teh agent I had no more money left, and offered $280k, got accepted verbally, ended up selling getting gazumped for $281k at the next day open!!when I was prepared to go up to $285k,

and uponsaying to the agent "why didnt you let me know?" he said "oh you said you had no more left"

my first lesson in property it was

 

[cmason]

My first offer would normally have a little bit of wiggle room for a 2nd and final offer to their counter.

In your case there was no counter offer just the agent saying there was another offer of $X which was rejected. For me in that case I would leave it at that if they are bluffing they will get back to you with a counter. Especially since you have no emotionally connection let the agent do all the work.

 

[allsuccess]

I have done the same (so I agree with you) and has been successful; given a low amount but given the impression to the agent that I can move up.

 

[TMNT]

My first offer would normally have a little bit of wiggle room for a 2nd and final offer to their counter.

agree!

For me in that case I would leave it at that if they are bluffing they will get back to you with a counter. Especially since you have no emotionally connection let the agent do all the work.

or unless, both our offers are no where near the ball park figure
interesting thing is my offer is $10k less then what the guy paid 3 weeks ago, and the other offer is pretty much the same as what he paid......yes 3 weeks ago! apparently a divorce

 

[cmason]

or unless, both our offers are no where near the ball park figure
interesting thing is my offer is $10k less then what the guy paid 3 weeks ago, and the other offer is pretty much the same as what he paid......yes 3 weeks ago! apparently a divorce

then sounds like unrealistic vendor expectations, in which case I would let it go and when they come back down(unless they get an unrealistic offer) they'll field the realistic offers

 

[TMNT]

then sounds like unrealistic vendor expectations, in which case I would let it go and when they come back down(unless they get an unrealistic offer) they'll field the realistic offers

oh yes I agree, since its been on teh market for about 5 days so far,

putting the shoe on teh other hand, the vendor could have got a screaming bargain teh first time around, and hence asking say $280k might be reasonable,
however, he does have to pay stamp duty and selling costs, of anywhere between $10-$15k, so I dont blame him for putting up for $30k-$40k more then what he paid for it