Vendor playing games

Hi
placed an offer on a proprety $328,000 apparently there have been a couple of other offers which fell over due to finance, buyers gone cold.

Bank valuation has previously come in at $330K. I was advised last Saturday that the vendors had accepted my offer this was to be faxed to me on Saturday. I find out today that the vendors have counter offered at $339K which is $9000 above bank valuation, the vendors are aware that I know this. Vendors are apparently in real estate game.

The property is in growth area and is positive cashflow which makes it attractive, but I do not want to pay above bank val, 330K. Have gone back with this, but I think they will be trying for some where between
330K-339K.

What would u do? I think I have pretty much made up my mind to give it a miss if I dont get it for $330K

Cheers, MTR
 
Hi MTR,

I think it depends on a couple of things:

1. Is this purely for investment or a potential PPOR?
2. What's the market like in the area? i.e. extremely competitive?
3. Will you have issues financing the extra 9k?

I have been looking for a PPOR within certain areas for the past 8 months, I have been bidding 50-80k above reserve prices and still missed out, so if I had an oppurtunity for a private sale and it was what I wanted, I think I would pay the extra 9k without blinking an eyelid.

BUT if the market in this area isnt so competitive, and you are looking purely for an investment, and you feel there are similar oppurtunities around (i.e the market isnt ridiculously competitive) then maybe you could find something of the like with vendors more keen to sell.

If you are in 2 minds about it (and ofcourse can afford to do so) maybe meet them half way - offer 334k as your final offer???
 
3 choices:
1. Walk away .....they might come running to you....or not
2. pay $9K more which is 2.65% more....geeze hopefully you'll pick that up in less than 6 months in CG
3. Counter offer, as has been mentioned

And just because a bank val says $330K does not make it so.

We just had a bank val for $400K on a unit we're buying and a different bank val on the same property for $430K
 
Hi

What would u do? I think I have pretty much made up my mind to give it a miss if I dont get it for $330K

Cheers, MTR

I would:

1. write up contract for $328k and hand deliver contract to the sellers agent. (That way, everybody knows you are not playing around)
2. Put in contract that the offer is recinded in 48 hours.
3. If it falls through, and you like it, get your other half to put a bid on it for a little bit more.:) (This helps if not married...might be able to put maiden name in???) I have done it the other way around in a kind of way.

Otherwise, if you really want it, put in more than $328k

Cheers,

F
 
As Propertunity mentioned, do not always be put off by a bank val. They are notoriously on the low end of the scale and a val within 9k is often pretty good.
 
thanks everyone, I think Propertyunity is probably correct.

I have decided not to pay anything over $330K not necessarily because of val but am looking at another deal and will just move on.

Cheers, MTR
 
Hi Boobs
Yes. This market will have good long term growth, however it is not currently rising so not prepared to chip in the extra $.

Hi PB
They rejected $330K and the RE agent is also fed up with the vendor as this is the 3rd contract. Apparently they also placed some stupid condition on the contract which the RE agent would not discuss.:confused:

This is getting bigger than Ben Hur, time to move on and find another.

Cheers, MTR
 
Hi Boobs
Yes. This market will have good long term growth, however it is not currently rising so not prepared to chip in the extra $.

Hi PB
They rejected $330K and the RE agent is also fed up with the vendor as this is the 3rd contract. Apparently they also placed some stupid condition on the contract which the RE agent would not discuss.:confused:

This is getting bigger than Ben Hur, time to move on and find another.

Cheers, MTR

Unfortunately it sounds like the vendors have wasted a lot of peoples time. Definitely sounds like time to move on!
 
Hi Boobs
Yes. This market will have good long term growth, however it is not currently rising so not prepared to chip in the extra $.

Hi PB
They rejected $330K and the RE agent is also fed up with the vendor as this is the 3rd contract. Apparently they also placed some stupid condition on the contract which the RE agent would not discuss.:confused:

This is getting bigger than Ben Hur, time to move on and find another.

Cheers, MTR

LOL! :D
I get that sometimes!

Boods
 
The valuer used past sales.

If the market is rising it is impossible for the valuer to be 100% accurate

If they valued the propety $330k in a rising market and then saw a contract on it at $339, then they should rubber stamp that sale price, provided the price is not significantly above the comparable sales evidence nor the property being at the top end of the market which I doubt it would be at that price.

I have a property on the market at the moment. I know what I would value it at for if it was for refinance for mortgage security purposes. The agent reckons he will get me well above that figure, probably 10% above it. Given the current market conditions I agree with him. The reserve will be at my valuation figure; I truly hope the agent makes me out to be out of touch with this rising market where demand far out strips supply. (Interestingly another agent valued the property below what I think the property is worth).

I am valuing a $1m plus property at the moment, for a purchaser, the property is due to go to auction and I think they want to put in a pre auction offer. I will value it based on as recent sales evidence as I can find. I expect it will sell above my valuation figure. However I cannot predict prices for a mortgage security valution, I can only use past sales evidence. I would highly doubt in the current market that the vendor will accept the offer at my valuation figure pre auction.

So the moral is thus .. when you are looking to buy in a rising market a pre purchase valuation can only be considered a guide not gospel.

cheers

RightValue
 
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