This property was listed as 570-620 last week. Went to the inspection on sat and online price changed to 650. Talked to the agent and he said he got 3 written offers from 600-620 and vendor is definitely selling. I really like this home but can't afford anything over 630. Should I just submit my offer at 630 and put a deadline on?
What to do?
- Thread starter candyinvest
- Start date
candyinvest,
You don't get what you don't ask for.
If you make an offer the three possible outcomes are that it will be accepted, it won't be accepted or they will want to negotiate terms with you.
If you submit an offer at a price with terms that you are happy with the worst case scenario is that it is not accepted. The agent could be talking up the interest to procure a higher offer from you but stick to your guns and eventually you'll get a deal.
You don't get what you don't ask for.
If you make an offer the three possible outcomes are that it will be accepted, it won't be accepted or they will want to negotiate terms with you.
If you submit an offer at a price with terms that you are happy with the worst case scenario is that it is not accepted. The agent could be talking up the interest to procure a higher offer from you but stick to your guns and eventually you'll get a deal.
This will be my investment
Do the sums still add up for you at 630k?
If so put that forth, if not find another house. Don't be attached. Has to be a pure numbers game.
OK, on the basis you have done your numbers and $630k is a good investment and not what you are have to pay, do this:
- make a written offer
- attach a letter form your broker bank stating you have the funds pre approved
- consider waiving building inspection and subject to finance clauses and if you can sign the contract
- in your offer, state: you are a professional investor (i,e, not emotional purchase just and investment) and have others IPS you are looking at, so your offer stands for 48hrs only, so close of business Tuesday or Wednesday?
This strategy removes doubt and puts PPOR buyers under pressure to act the same and they usually are not ready or comfortable doing so.
It also suits a vendor who has bought elsewhere and wants the money secured. It really is "bird in the hand" of $630k or a potential "two birds in the bush"$650k subject to finance, inspections, etc....
If you are serious you have got nothing to lose and if they don't come back, walk away and find two others you like as well that you can quote to the agent as the other ones (but not all) you are considering.
A mate of mine does this all the time, he now has 17 IPS.
If works as the Agent, in the end, wants a sale and may not really care about $650 versus $630 commission wise. He can use your statements above to build your case and offer security.
BUT... you must be ready to walk away and giver that impression. My mate has made some low ball offers, told to "stuff off", walked away and been called back 4 months later saying, is the offer still available?
Peter 14.7
