A tip for Negotiating - Practice making Low Ball Offers

Hopefully we`ll see these times again in Melbourne and Sydney ;-)

 

Good point and worthwhile looking for .

Cliff

 

@paulF - would appreciate if you could elaborate this a bit more -
- were you a registered bidder at all?
- sounds like the property was passed in at auction, but the vendor HAD to sell on the same day - if that’s the case, didn’t the highest bidder get the first chance to negotiate after it was passed in? I mean why would the vendor not negotiate with the highest bidder as they’ve made a bid closest to the vendors expectations - how did it end up with you getting a chance to negotiate even though you weren’t the highest bidder?

What I am wondering is - if I go to an auction, but don’t register to bid, but let the agent know that I am very interested in the property, and let’s assume it gets passed in, and I am still hanging around ... do I stand any chance of negotiating at all? If I somehow do, then obviously my offer would absolutely have to be higher than the highest bid made earlier - isn’t it?

thanks

 

What I've noticed in the Adelaide market is the quoted price range is reasonably accurate most of the time or a lot of the time. When I'm in the west it's more of a subtle trick to get you thinking that true value is around the lower end of the quoted range or so but a bit of research can show you that it's often 20-30k above realistic market value or even more!

Most people don't do a lot of research I'd say?

 

I would put this into the same basket as cold selling - also if you could master it you could become very rich - developing a thick skin in any game especially sales could lead to enormous wealth, think about it, one of the keys to becoming wealthy is having a small a downside as possible compared to a huge amount of upside on any type of profitable transaction and repeating it over and over again....if your only downside is feeling embarrassed about what you ask for or are trying to sell then you could do very well

 

A bit like the bloke I saw standing at the exit to a subway station in San Francisco many years ago asking desirable young ladies for sex. Amazing gall - low success rate - but who knows if it worked.

 

Deceased estate .

Cliff

 

The owner had the weight of the world upon them.

 

I love out of area agents.

 

and lazy agents

 

Unfortunately not all OOA are lazy, otherwise it'd be too easy.

 

Yes!

 

That's a very good point, however I have had a very good outcome a couple of times from OOA's.

 

Yesterday I made a lowball offer on a property I am keen on. It's in a coastal area where properties are generally selling fast and stock is limited. The agent said she would take the offer to the vendor and she gave me the impressiin she would get back to me yesterday but i havent heard anything. I'm not sure how to play it now....Trying to be cool....whilst secretly very keen...

 

Chances are the agent is using your written offer to secure a higher price from other interested parties if you haven’t put down an expiry date and time for your offer.

 

Nothing wrong with making lowball offers, but your timing is well off. It appears to be a seller's market in the area you are looking at and if the above is correct, there's no incentive for the vendor to accept a lowball.

 

That's generally a standard response from most agents. She probably hasn't even told the owner about it if it's well under the price they discussed especially in a hot market. If you are really keen you might want to make your best offer known to the agent before you miss out!

 

It was a verbal offer but, yep, I think you were right....

 

So apparently, according to the agent, the property looks as though it might sell above asking! And here I am, going in with my low offer...

 

Remember that it's a courtesy by agents to offer the first right of negotiation to the highest bidder, but there's no legal obligation to do so. If a property passes in, anyone can negotiate (non-registered bidders included) We've attended many auctions where we've become involved post and not even put in a bid. Much depends on the quality of the underbidder, the motivation and situation of the vendor as well as the relationships you have with the selling agents.