Urgent - FHB negotiating downwards from initial offer

[SYDB]

Hi,

Sorry to label urgent but this issue has come up pretty quickly and unexpectedly and I need to resolve by tomorrow.

I put an offer in on a property today (FHB), agent has informed it is within vendors expectations, and will call me tomorrow if nothing better comes in and we can sign.

I have had a look at another sale in the block in April '09, of a unit that looks to be 50% larger (80sqm vs 120sqm), and it sold for 5% less than what I have offered!

I am concerned about this as even given the market has moved maybe 10-15% since April '09 in this region, it still makes me question the relative value I am paying.

Anyway, I have emailed the agent to see if the vendor is open to negotiating a little less than my offer (and asked the agent to indicate their thoughts on relative value to help position negotiations).

Does anyone have any experience in situations like this. I should have done my research prior is lesson number one. But now that I am in this position, how do I negotiate a lower price than my original offer (which the agent said would be accepted if nothing better comes in).

Thanks for any assistance.

SYDB

 

[Rolf Latham]

Your offer is only just that, an offer

There has been no acceptance on either side.

As an aside, What suburb are we talking here please ?

12 mths in Sydney at the mo is a long time

ta
rolf

 

[SYDB]

Your offer is only just that, an offer

There has been no acceptance on either side.

As an aside, What suburb are we talking here please ?

12 mths in Sydney at the mo is a long time

ta
rolf

Thanks Rolf

Suburb is in inner west of Sydney

I agree 12 mths is a long time and have factored in some growth, but I am still concerned around the relativities

 

[JoshyBoi]

As ROlf said, it's just an offer...

are there any more recent comparable? or anything else listed?

remember also, the agent works for the seller...so don't really expect them to help you much with lowering your offer...

 

[SYDB]

As ROlf said, it's just an offer...

are there any more recent comparable? or anything else listed?

remember also, the agent works for the seller...so don't really expect them to help you much with lowering your offer...

yeah, i understand, but i got the impression they were pretty keen to sell quickly based on my convo with the agent

anyway, i guess you can only suggest that your offer is now X and you can sign today, you have finance/deposit etc......up to them to accept or otherwise I guess.......

 

[whatever123]

yeah, i understand, but i got the impression they were pretty keen to sell quickly based on my convo with the agent

anyway, i guess you can only suggest that your offer is now X and you can sign today, you have finance/deposit etc......up to them to accept or otherwise I guess.......

Can you call the agent and ask whether the offer has been accepted. If not, then you retract the offer pending further investigation, (or something).

If it the vendor has accepted, say it looks like you may not get the finance for that amount (blame interest rates or something) and that you might only be able to get $X , being the amount you are willing to pay.

Many vendors, if they are keen to sell and hearing that banks are knocking back finance will realise things are getting tight and will accept anyway.

 

[SYDB]

Can you call the agent and ask whether the offer has been accepted. If not, then you retract the offer pending further investigation, (or something).

If it the vendor has accepted, say it looks like you may not get the finance for that amount (blame interest rates or something) and that you might only be able to get $X , being the amount you are willing to pay.

Many vendors, if they are keen to sell and hearing that banks are knocking back finance will realise things are getting tight and will accept anyway.

Thanks very much, certainly some food for thought

I will continue negotiating, hopefully knock a little off

 

[Perp]

I have emailed the agent to see if the vendor is open to negotiating a little less than my offer (and asked the agent to indicate their thoughts on relative value to help position negotiations).

You can retract your offer at any time. Contracts for real estate are one of the few kinds of contract which cannot be made verbally in Australia; they have to be in writing or no contract exists, so until you've signed, you haven't even legally made an "offer", you've just indicated some interest.

Don't "ask" if you can offer less; of course the agent will say no (or at least strongly discourage you), because they work for the VENDOR. Simply advise that you've done some further research and believe you offered too much, and submit your revised offer. You can ask the real estate agent's opinion on relative value if you like, but keep firmly in mind that they work for the vendor, so their fiduciary duty lies with your contractual opponent.

If you can track down the agent who sold the other unit and they're still active in this market, their opinion would be more interesting. Or just ring any other local real estate agent and seek their opinion. Be honest and tell them the situation; most will be happy to shoot the breeze on values for a few minutes in exchange for goodwill... they know you're one day going to sell that unit.

I should have done my research prior is lesson number one.

You got it!

Can you call the agent and ask whether the offer has been accepted. If not, then you retract the offer pending further investigation, (or something).

You can retract your offer whether it's been verbally accepted or not.

I note that this is the second time in this thread people have referred to "asking" the vendor's agent whether the buyer may do something. Know your rights, and then be more assertive and tell the agent what you're doing!

 

[artlez]

The above also applies for written offers in NSW. I'm referring to offers and not contracts which are entirely different. I know some states might have it differently.

 

[SYDB]

I got owned in a Dutch Auction but got the place, felt like someone put me in a washing machine

Went 5K over my pre-determined limit, but in the scheme of things, Im really pleased - we have been looking for a while and missed out on a few, just happy to have a place

Negotiation is tough, the agents have all the info, you really are flying bind

Signed and exchanged, just hope everything goes smooth now

Thanks for all your advice people

SYDB