What to offer?

[Non65]

Hi everyone, I am currently looking at putting an offer on a unit. It is listed for $309K but the RE said they will look at offers over $279K now. I believe through my own research it has a value of approx. $285K, however I would like to pay below value.
Do you think it is wise to offer below $279K and how much below would you go?
I would really value peoples opinion on this as I am relatively new to this.
Cheers

 

[DaveM]

$268k 30 day settlement, see what they come back with

 

[JWR]

250k unconditional 14 day settlement (if u can buy that quick and uncon)

 

[HotRod]

250k unconditional 14 day settlement (if u can buy that quick and uncon)

Add in a nice big juicy deposit equal to the agent's fee (that will sit in the agent's trust account and be baiting the agent to release to himslef in a hurry) will make the agent work hard for you, not the seller.

 

[DaveM]

250k unconditional 14 day settlement (if u can buy that quick and uncon)

And once the agent gets up from the floor laughing, he will probably hang up on you. Theres lowballing, then theres stupidity.

Still, worth a try I guess

 

[Aaron_C]

250k unconditional 14 day settlement (if u can buy that quick and uncon)

Only if you have the cash in your bank account

 

[Non65]

Thank you all for your suggestions. I was thinking maybe around $270K so it gives me the confidence to do so, maybe I will try $268K as $250K maybe a bit low seen I don't want to go unconditional. The PM has told me they are very motivated because of divorce settlement.

 

[locko24]

And once the agent gets up from the floor laughing, he will probably hang up on you. Theres lowballing, then theres stupidity.

Still, worth a try I guess

How is that lowballing?
Depends on the market. Sounds pretty slow if it started at 309k. Try 15-20% off. They can only say no. Then you can try another offer.
If they counteroffer on your lowball, you're in!

 

[laurieload]

I would leave some room to negotiate up after they have refused your initial offer. Eg, they prob want 279k, you want to buy low - so you put in 265k, they put in 280k, then you say you'll meet them halfway at 272.5 which shows good will on your behalf, who knows they might actually just go for it

(incidentally don't forget that deposit cheque and to put a set time line on your offer, as Mr real estate agent you are busy looking at other properties too )

 

[HotRod]

Thank you all for your suggestions. I was thinking maybe around $270K so it gives me the confidence to do so, maybe I will try $268K as $250K maybe a bit low seen I don't want to go unconditional. The PM has told me they are very motivated because of divorce settlement.

Then lowball with a maximum (hopefully agent fee equalling) deposit and the shortest possible settlement time you can get.

If you have finance lined up first you can then almost make an unconditional offer (maybe subject to a val by the bank) and then go for a 28 day settlement maybe 21 at a squeeze.

 

[locko24]

Thank you all for your suggestions. I was thinking maybe around $270K so it gives me the confidence to do so, maybe I will try $268K as $250K maybe a bit low seen I don't want to go unconditional. The PM has told me they are very motivated because of divorce settlement.

You're alot more likely to get a cheapie if you go unconditional. Just sayin...

 

[HotRod]

You're alot more likely to get a cheapie if you go unconditional. Just sayin...

if he has his finance preapproved then that might be an option.

If he has done his research and the val won't be less than his offer then go for it with a 14 day unconditional. Just need to make sure all his ducks are lined up in a row.

 

[DaveM]

Yep, divorce settlement is music to a buyers ears. Good opportunity to buy something low when the sellers are working against each other and not against you

Knowing now that its a divorcee sale, I would reduce the offer to $260k. Its high enough to be considered, but not so low that it would be dismissed without consideration like $250k might be.

I have bought a couple of divorcee sales, and both were a low offer then a small increase of 5-10k take it or leave it. Was taken in each instance.

 

[7smurfs]

Be wary of others who may also be in your position and making offers.

If you managed a sneak peek at the REA sheet of enquiries and gauged that you have a bit of competition I would then not go too low and start at ~270k.

Otherwise, go as low as 260k if there seems to be no other interests! Goodluck!

 

[Non65]

As far as I know there is no one else really interested at the moment. It is still listed at $309K until this weekend when they relist at offers above $279K so I probably need to act before then.

 

[MKP]

I have seen a SOLD price that is lower than the minimum asking price. In this case, the a house was advertised for offer above $320 K; and it was sold for $318 K. The 'offer above' $X is very common these days. I think the buyer should just ignore it and make an offer of what do you think the fair price is for a given area at a given time in the cycle. The value is whatever a buyer and a seller agree at the time of transaction. And that is not always in terms of $. But for an IP your $ value is critical.
MKP

Hi everyone, I am currently looking at putting an offer on a unit. It is listed for $309K but the RE said they will look at offers over $279K now. I believe through my own research it has a value of approx. $285K, however I would like to pay below value.
Do you think it is wise to offer below $279K and how much below would you go?
I would really value peoples opinion on this as I am relatively new to this.
Cheers

 

[JWR]

If its only worth 285 by your admission and u want BMV then 250 is the most I would want to pay - I don't think 250 is lowballing at all.

 

[willb]

I've seen a few go below the offers over value. I'd go about 10k below and the increase by 5K after that

 

[Ed Barton]

I've seen a few go below the offers over value. I'd go about 10k below and the increase by 5K after that

in the past it was mostly the case of putting a price on a property and negotiation would be down.

a hot market created vendors who would list their minimum price as 'plus' and then a silent bidding war would occur.

more recently vendors have listed as 'plus' to take advantage of buyers still living in the past.

(this is Brisbane). offers from or plus prices mean very little in the current market.