Bottle of Penfolds Grange to sweeten an offer at tender

Discussion in 'The Buying & Selling Process' started by Jobeki, 27th Jan, 2020.

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  1. Jobeki

    Jobeki Active Member

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    Ok... so we are in the process of buying our final family home. We really like a place that is up for tender. We will put in our best offer but are concerned it may not be good enough (marginally). We thought to differentiate our offer we would
    1. Write a letter with a photo of our family trying to connect common interests
    2. Included in the special terms offer them a bottle of 2008 grange (or something like that?) - because we know the sellers like wine.

    To the property chat community.
    1. Is this ridiculous
    2. If you loved wine and were (presumably) very financially comfortable would this sway you over and above the purchase price of the wine since with the letter and the bottle of wine we are trying to make a personal connection. Would this (Hopefully) emotional connection potentially sway you to the tune of 15-20k knowing we clearly love the house and have tried to connect with them emotionally (to put this in perspective the property is in the 1.5-2m price range) less even if there was a higher offer. We are also looking at going in unconditional (the sellers have already had a building and pest and we are comfortable with it, we will have pre-approval) and potentially looking at waiving our cooling off period

    Are these things reasonable or crazy? We also know this will make us look desperate and like the RE agent can squeeze more money out of us but we are at our financial limit so we will just walk away knowing we physically can’t go higher (and being ok with that) if the agent is trying to bait us higher due to our emotional connection to the house. We are also early days in looking so while we love this house we know there are plenty of others out there. Just looking at options here
    Thanks for your thoughts!
     
    Last edited by a moderator: 29th Jan, 2020
  2. Trainee

    Trainee Well-Known Member

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    IF the seller were persuaded by that sort of thing, the family photo might help. The wine they can buy themselves.

    the unconditional offer with the sellers desired settlement period would be your best bet because thats worth money (but unlike the wine its subjective value, so it might be worth more to the seller).

    at the same time, if you have a limit you need to be willing to walk away.
     
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  3. TMNT

    TMNT Well-Known Member

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    I guess youve got nothing to lose.....
    If I received an offer with a bottle of wine, id just workout the $ value and add it to the offer

    but sentiment can be quite powerful, so who knows
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    The vendors will (if they accepted the offer) be able to regale their friends with a story that they sold the house for a bottle of Grange, without having to disclose the price.
     
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  5. TMNT

    TMNT Well-Known Member

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    ill take the cash thanks! ;)

    unless its a original james bond Aston Martin
     
  6. willair

    willair Well-Known Member Premium Member

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    Penfolds Grange from a auction house would be between $400-550, from a hotel outlet maybe $900.00 plus ..
    The vendors if they cellar wine would know this..

    If this is in the 1--5 too 2 mill range and has been held for 15 years ,and as you are already sold on the house don't use the wine or photos and don't play this game..

    By the sounds of this both the title holders ,and the Agent will play you like a deck of cards..

    Don't ever go unconditional, turn the tables on the vendors and the agent -- make one offer on a 24 hours turnaround and tell the agent make it work if not walk away ..

    BTW in that price range as you have not stated the area ,what has the Banks valued the property at?,what happens if the value comes in at 1--2 mill ?..

    imho..
     
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  7. Jobeki

    Jobeki Active Member

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    It’s for sale by tender. I should have made that clearer in the body but did mention it in the title... no offers can be considered beforehand- one chance, best offer. Comparative houses very close in value to this on the same street sold mid last year but I agree valuation is something I need to try and mitigate against but given the area I would be surprised if it was a problem. Not keen to mention the suburb as you never know who is lurking out there but suffice to say it is close for home to you willair ;)
     
    Last edited: 27th Jan, 2020
  8. willair

    willair Well-Known Member Premium Member

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    Quote..
    we will have pre-approval)

    To me the worry would be the price range you quoted 1-5 mill up too 2 mill..

    500k is serious money and i understand the tender system and the trap-doors that are pre-set,the cost to value this property would be less then 500 bucks that's the starting point once you know that range then you can side-step the tender system ..Property in that range is not flying out the real estate doors that quickly in Brisbane some i have watched from west end 5 klm's out have just sat there for over 12 months through several re sales companies ..You may think i'm blunt but you make a mistake on the value and are led up the garden path then it may well take years to recover while the agent vendor only want the ink to dry on the contract does not matter 0000.0001 %..good luck..
     
  9. Jobeki

    Jobeki Active Member

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    It’s all good mate. I value your input and it is a concern for me too. I would be interested in your input but can’t PM you. If you are interested PM me and I will send you the link
     
  10. willair

    willair Well-Known Member Premium Member

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    I,m unsure how the email system works ,but as you stated it's close too one our houses then as i just had a quick look in the 1-5 mill range within 3 klms and there is only maybe 7 out of those 7 as some are in the pre-auction tender stage maybe just wait till they till it goes to auction ,i have a good idea the property as only a few have wine cellars once one scopes down..like i said good luck at the auction..
     
  11. Jobeki

    Jobeki Active Member

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    I was talking generally re. Brisbane but it is tender only not tender pre-auction
     
  12. wylie

    wylie Moderator Staff Member

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    I couldn't imagine many vendors being swayed by an expensive bottle of wine to accept a tender that is lower than the next one. You mention you know what was paid for the house, but that really has no bearing on what it will sell for, or what the vendor will accept.

    I say put your best offer on the table, and good luck. I dislike tenders. You don't know if you will miss out by $5k or overpay by $500k.

    Urghhhh!!!!
     
  13. Jobeki

    Jobeki Active Member

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    It is the missing out by 5k we are concerned about and where these things MAY come in depending on the sellers. We really don’t know but thought they were worth a try. There are 2 comparable sales same street mid last year for ball park what we would offer. We won’t be overpaying by 500k but I agree 100k would be possible
     
  14. TMNT

    TMNT Well-Known Member

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    these are absolutely the worst as a buyer in my experience

    you submit too high, you overpay and regret
    you submit too low, you dont get it and regret
    you dont find out how much it sold for, you regret
    play hardball, you regret
    play the sucker, you regret
     
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  15. Trainee

    Trainee Well-Known Member

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    but its ppor... if you love it and can afford it.....
     
  16. Jobeki

    Jobeki Active Member

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    That’s kind of the way I figure trainee.