What's the REA's strategy now?

[Happiness]

I have my eye on a place for my first PPOR. it has been on the market for 8 weeks now. The seller knocked back my offer, so now playing the waiting game. I note now the open house viewings are not occurring and viewings are by Appt only. The address is also not advertised now. I also note that the contract has auction clauses in it. My question is do you think the REA has not had enough viewings or do you think the REA is preparing now for an Auction and is this typical of REA'S in NSW? I am thinking of putting in another offer but I'm not going to if they are about to go auction.

Your comments would be greatly appreciated.

 

[thepeoplesagent]

Hi Happy,
Beware… Playing the “waiting game” can end up with you playing the “missing out” game. And no one likes being a part of that game. If you’re prepared to pay more and you like the property I suggest you do so.

As for taking it to auction, every agent is different in their strategy. Personally I think the vendor has missed the boat. If you’re going to auction a property, it usually works better to start with the auction campaign, not promote the property for 8 weeks then go to auction. I would be surprised if it gets put to auction now. But stranger things have happened.

More than likely, the agent got sick of sitting around for 30 minutes every Saturday and having no one turn up; subsequently cancelled the open home.
Make your next offer, tell the agent you are prepared to sign a contract with a cooling off period and pay a .25% deposit. That can sometimes motivate both agent and vendor.

Good luck!!

 

[Happiness]

Thanks the Peoplesagent for your valuable comments, what about if I reoffered my original offer, I still believe its worth that. Is it odd for a buyer to reoffer an offer. I made the offer three weeks ago.

 

[wobbycarly]

Thanks the Peoplesagent for your valuable comments, what about if I reoffered my original offer, I still believe its worth that. Is it odd for a buyer to reoffer an offer. I made the offer three weeks ago.

Put in another offer, but drop the price this time!

"I see the property is still on the market. I am still interested. I am prepared to offer [new price = original price, less some] with [xxx] conditions."

 

[westminster]

With a 48 hr expiry

 

[Happiness]

Thank you everyone, your comments are really appreciated.

 

[DaveM]

Put in another offer, but drop the price this time!

"I see the property is still on the market. I am still interested. I am prepared to offer [new price = original price, less some] with [xxx] conditions."

To quote the Old Man from Pawn Stars...

"You go up, I go down"

 

[westminster]

How much under asking price was your original offer?

 

[Scott No Mates]

As above throw in a few grand less with a sunset clause. If they come back you can always offer your original amount and have the agents feel good that they've got you up.

 

[Happiness]

My last offer was 650,000. The vendor now wants 750,000 (after reducing the advertised price from 770,000).

A really good comparable -double garage and an extra bedroom sold for $700,000 recently.

Do you think I should offer 650 again???

 

[matto_]

nice when it is a buyers market (except if you are selling).

 

[westminster]

That is a fairly serious disconnect on prices. Why does REA think its worth $100k more than a 'comparable' property.
Why do you think it's worth $100k less.
Have you considered paying to get a valuation on it? It will give you an independent unbiased idea of what it's worth and work out where the disconnect is.
I'm not surprised they refused your offer and I suspect they will again as they want $750k not $650k

 

[wobbycarly]

My last offer was 650,000. The vendor now wants 750,000 (after reducing the advertised price from 770,000).

A really good comparable -double garage and an extra bedroom sold for $700,000 recently.

Do you think I should offer 650 again???

Maybe 670-690. If the comparable is indeed comparable, and if prices are not noticeably moving (either way), and if you really the place, then this would still be a bit 'under market'. A few "ifs" in that though!

 

[Rolf Latham]

My last offer was 650,000. The vendor now wants 750,000 (after reducing the advertised price from 770,000).

A really good comparable -double garage and an extra bedroom sold for $700,000 recently.

Do you think I should offer 650 again???

50k gap on the comp is a fair bit, especially if this is an area like the Hills where there is little stock

ta
rolf

 

[Brady]

50k gap on the comp is a fair bit, especially if this is an area like the Hills where there is little stock

ta
rolf

Yes maybe $50k is a fair bit, but OP said that he found a comparable property thats $700k and he still offered $650k??? Maybe they will accept $700k... $50k less

 

[Happiness]

Thanks everyone for your comments

 

[oneguy]

My last offer was 650,000. The vendor now wants 750,000 (after reducing the advertised price from 770,000).

A really good comparable -double garage and an extra bedroom sold for $700,000 recently.

Do you think I should offer 650 again???

Just so I understand correctly. Is the - there meant to indicate a 'minus'?

As in the comparable doesnt have a double garage nor an extra bedroom

Or is it, the comparable has a double garage and an extra bedroom and prop you're interested in has no garage or a single garage?

In answer to your question, you can always go up, so at the risk of offending vendor (if u care about things like that), just say, my original offer stands (but not for much longer), and see what the response is, if they counter then you can then counter and go up then.