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finding out Auction passed in price

Discussion in 'The Buying & Selling Process' started by xactly, 1st Aug, 2016.

  1. xactly

    xactly Member

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    Ive seen a duplex for sale in my neighbourhood.
    selling the 2 separately (separate titles) and both were passed in on the auction over the weekend.

    I would be interested in buying both.
    Would the Agent tell me how much they were passed in by?

    How would you proceed from here?
     
  2. Agent30yrs.

    Agent30yrs. Well-Known Member

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    I'm sure he would - It's public information It's also reasonable for you to also ask what the reserve was. Assess your options from there.
     
  3. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Should add. Confirm if they were vendor bids or not .
     
  4. xactly

    xactly Member

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    Thanks
    Good to know, I thought so.
    this gives a good range
    vendor wants - market pays = price difference to negotiate
     
  5. Big Will

    Big Will Well-Known Member

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    vendor wants - market pays + vendor accepts - purchaser wants to pay x how many people are also putting in offers.

    Play your own game, what a property passed in at has little relevance to the end game.

    If the property had a bid at 300k and vendor bid at 450k and no further bids and the vendor wants 500k you are not going to secure the property for 400k.. Not without a lot of things happening including a load of time being on the market.

    Look at comparable sales and start below where you wish to pay and try not to destroy your good will.
     
  6. xactly

    xactly Member

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    Thanks Big Will

    What destroys good will?

    How do I negotiate fairly, keep good will and not short change myself?
     
  7. willair

    willair Well-Known Member Premium Member

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    Maybe just a simple title search to start with,to see who control what..
    Once you know who the title holders are,and depending if you were at the auction,a simple phone call too the title holders would find out their asking price real quick..
     
  8. Big Will

    Big Will Well-Known Member

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    Don't be stupid with you opening offer.

    If the place is worth 500k and you start at 380k you will put the vendor's and REA noses out and will not enjoy being with you.

    You also need to work out first to you want to get it for the cheapest price and you are willing to lose the property or do you want the property and you want to secure it for the right price. The harder you go the less likely you will get the deal.

    Take the agent out for a coffee (or better yet ask them to take you out for a coffee). Work through all the other parts of the contract (settlement date, conditions, if the vendor wants lease back), get agreement on everything else besides price first and put as many of the items in the vendors favour that you can. E.g. if they want a 120 day settlement and you need 30/60 day settlement your offer isn't going to be as good.

    Once you have an agreement on everything else throughout that time probe for the vendors lowest price (pay little attention though). When it comes to price you should have done your DD and know what the property (in this case properties are worth). If the vendor is wanting 300k per building you can ask what discount you can get for buying both. If they lower it to 275k per unit you have just saved 50k (in theory) however you can say things like would the vendor be open to 2#0k per unit (this I cannot give as I don't have any information on the properties or the market). If REA says they will take it to the vendor great however if they say no you have the option to increase from where you are (again reiterating you are trying to solve 2 problems and working to everything in favour for the vendor) or if you believe you price is 'fair' and 'reasonable' (e.g. 275k p/u vendor price and you are at 250k p/u and you are willing to go max 260k p/u) then you might slowly start to stand up and pretend to walk away see if the REA budges. If they don't then you might say look I would hate to get this close and not get an outcome for all but lets put another 5k per unit (255k p/u) if that then gets him to put it to paper.

    Time is a valuable tool in trying to secure a property for less and if you are prepared to walk away the power of negotiating is with you. However if you walk away and then come back you put yourself in a weaker negotiating position. If you do walk away always leave the door open and say I will leave my offer (e.g. 250k p/u) on the table and if the vendors change their mind let me know but I am going to look at other options for now.

    Finally enjoy the dance, I enjoy this part the most of buying property.
     
    Gockie, Brady and willair like this.
  9. xactly

    xactly Member

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    great tips Big Will!
    However shouldnt have worried about destroying estate agents good will! She destroyed mine!

    Night before I turned up to inspect i was at a dinner party. One of those freak co-incidences, there was a developer sitting next to me.
    His mate bid on it and just missed out and was told there was a conditional contract on the property ... no more bids.

    what is she doing trying to sell it to me then?

    went to the open house.
    casually talking, acording to her it was passed in a a lower price than the dinner party gossip.
    Odd,
    wouldnt you talk up the sale price so I am aware I have to match it?

    there was a phone call about the property while I was looking around. (I eavesdropped) clearly the realtor was stalling the bidder.
    "have to check with the vendor" 'he isnt sure about the contract conditions"

    She was adamant the whole time it was just price that was the stalling piont

    After having a look, I decided it had a lot of benefits to me and so rang my solicitor and since its a heating up market decided to instruct solicitor to move today.

    I decided to match the asking price, I want it. it was over her stated auction result and over the rumoured bid price.
    its a little high but I will use one as a PPOR.

    the solicitor called me and sounded baffled. He asked me ? does she really want to sell this? Ive never met such resistance to a sale!

    anyway, put the offer in. minimal conditions, quick settlement. and as we parted she said
    its not as high as some offers

    what the??
    why would she not tell me at least the bar i have to jump????
     
  10. Scott No Mates

    Scott No Mates Well-Known Member

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    @xactly - it may have been passed in at a lower amount but the highest bidder is the first party to negotiate with the vendor's agent. They may have raised the offer but not enough to secure the property.

    Sounds like it's a related party offer - friend/associate of the agent and clouding the responsibility to the vendor with their own interests.

    As a vendor, I won't disclose anything to a prospect. If I am paying a monkey to do a dance I'd expect the monkey to dance. Thw vendor would refer you to the monkey ao they can enjoy the dance.
     
    Last edited: 5th Aug, 2016
  11. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Can't see why they wouldn't - it's not like it's a secret. If you had of been at the auction you would have found out - so no issue with giving them a buzz and asking.

    Cheers

    Jamie
     
  12. xactly

    xactly Member

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    sooo
    got a phone call yesterday from the agent saying Ive been accepted. The overseas vendor picked my offer to accept
    congrats to me. backslaps all round.

    But...
    where is the contract?
    she has texted today 24hours later saying she hasn't got it yet.
    I would have thought a "yes, accepted" means the contract is signed and countersigned
     
  13. Marg4000

    Marg4000 Well-Known Member

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    Odd.

    Is the property in Qld?
    Usual practice is for the buyer to sign first then the vendor.
    Marg
     
  14. xactly

    xactly Member

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    correct
    did sign
    was waiting for vendor counter sign.

    told yes... so where is the finished contract?
     
  15. Big Will

    Big Will Well-Known Member

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    Could be with your solicitors...

    If it has been a couple of hours why not just call the REA and find out where (or when) will you see the contract. If you have got conditions on it (e.g. finance) say you need the contract to get the ball rolling.