A mistake I made (multioffer situation)

Discussion in 'The Buying & Selling Process' started by monty, 7th Mar, 2016.

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  1. SmashedEconomy

    SmashedEconomy Active Member

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    Spot on, and you can see here most people dont get point 4. Who cares about guessing whether there is another offer or not? Have your best price worked out and stick to it. Talk about other offers should then not matter.
     
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  2. Sackie

    Sackie Well-Known Member

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    @SmashedEconomy I agree with you mate. Emotions must stay out of it imo. Personally, my approach is to play my game the best I can to get the best outcome possible. If/when I realise that is not on the cards, I just move on. I don't really care what game the REA plays or other offers that may be made or not made. Its all irrelevant to me as an investor.
     
  3. wylie

    wylie Moderator Staff Member

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    I'm glad we paid over the asking when we knew there were five offers going in. Asking $155K. Most offers would have been a few thousand less. We offered $156k. Value now $900k. Sometimes it pays to pay more than your limit.
     
    Last edited: 11th Mar, 2016
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  4. Azazel

    Azazel Well-Known Member

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    If you pay more than your limit, you just have a new limit ;)
     
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  5. wylie

    wylie Moderator Staff Member

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    That's what I'm trying to say. I don't have a limit. I tend to buy with my emotions. Someone else who set themselves a limit and didn't go over it would have happily walked away from this purchase. I'm just glad I didn't.
     
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  6. vbplease

    vbplease Well-Known Member

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    I recently heard a wise auctioneer say "the more you pay, the more it's worth" ;)
     
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  7. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    I think the best game plan in a multi-offer scenario is to run your own race. Provided you have done enough research and you are confident on the value you have placed on it, then submitting your final and best offer will in theory be a fair market offer with numbers that work for you. It's much easier for an investor at this stage as emotion shouldn't come into it. If you are beaten on your final and best, then so be it.

    When all is said and done, if you perceive it as though you are only "competing" with yourself then you can remove all the noise. This isn't to say you must ignore the market, but the latter stages of a negotiation can become emotional and frustrating even for the seasoned buyer. I always take the agent's word with a grain of salt and run my own race. I have missed out on properties but the most important thing is that using that strategy I have never overpaid either.

    We all learn as we go along! Crunch the numbers, set your values and take a bit of time with negotiating. Good luck with the next one!

    Andrew
     
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  8. Azazel

    Azazel Well-Known Member

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    That's true. And the more you can claim and reduce your tax!
     
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  9. SmashedEconomy

    SmashedEconomy Active Member

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    No one is saying exceptions dont occur. You got lucky, but no smart investor does what you do. It is a recipe for disaster.
     
  10. SmashedEconomy

    SmashedEconomy Active Member

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    lol spend more so your deductions increase. Brilliant logic right there. lololol ;) No wonder this country has the highest household debt int he world, 40% of all loans are interest only, and a spectacular housing bubble.
     
  11. wylie

    wylie Moderator Staff Member

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    No luck involved. It was a calculated chance we took on paying over the odds. Paying more than asking price is not something you see very often (depending on the state of the market). Am I smart? Who are you to decide?
     
  12. wylie

    wylie Moderator Staff Member

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    I think you'll find Azazel was using "humour". Might have been too subtle for you to pick up on?
     
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  13. Azazel

    Azazel Well-Known Member

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    Good to know you get me @wylie :)
    Save tax!
     
  14. dabbler

    dabbler Well-Known Member

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    When I offer, I put in my offer and that is it, I do not play the games many REAs will try and get you into.

    There will always be a % of REAs you simply cannot deal with, a lot of them are new to selling too, just move onto next one.
     
  15. Azazel

    Azazel Well-Known Member

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    What if they come back with a reasonable counter offer?
     
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  16. dabbler

    dabbler Well-Known Member

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    Well, that is hardly just a game as would be on contract :)

    It is when the agents are just stuffing you around, raising when no one else is actually offering more, this happens a lot.
     
  17. Azazel

    Azazel Well-Known Member

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    Not always on contract, you need to agree or put your counter offer - or walk away.
    But you are right, they can still be messing you around.
     
  18. Lizzie

    Lizzie Well-Known Member

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    One situation I learnt from the hard way early on in my investing was a property I made and offer on , another purchaser made a higher offer so I also went higher ... ended up paying around $15k more than I really wanted but got the property ... the other purchase then made an offer on a house two doors up for similar to what they had made on mine, only to have the contract fall through because they couldn't get finance!

    Could've saved myself $15k (a lot at that time)
     
  19. Lizzie

    Lizzie Well-Known Member

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    Been there with that early on as well ... bought a house via "silent auction" - put in your best bid on paper and at the end of the day the envelopes are opened and the vendor decides ... there were two agents in the office working the property and mine overhead the other whispering to their purchaser what price to put in ... my agent told me to put in $500 more ... and I got the property.

    I do like Cherie Barbers advice - put in multiple offers on the one property - ie - selling price $300,000

    Offer 1 - $270,000 with 14 day cash settlement no clauses
    Offer 2 - $280,000 with 30 day settlement P&B required
    Offer 3 - $290,000 with 30 day settlement P&B and access by tradies
    Offer 4 - $300,000 with 60 day settlement P&B and access by tradies
    Offer 5 - $310,000 with 60 day settlement P&B, access by tradies and permission to begin renovation after 30 days

    She said often people go "oh - yes please $310,000 cash 14 days" and she will point out the $310,000 has clauses attached - if they want cash 14 days then the offer is $270,000
     
  20. Azazel

    Azazel Well-Known Member

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    Hehe.
    It's good when you're on the right side of it.
    See, it all even out.