First Home buyer : No Price guide and Tricky Agent

Not sure. He sent me a property vaulation report from CBA. I had requested reports for few properties and other properties sold in the range mentioned in report. Couple of properties had valuation of 850- 880 and those sold for 860k. So they seems accurate.

 

oh wow. thats a super cool list.
There were not much crowd. I mean it is not a super duper location nor any thing special. But suits us well since near to school. A bus stop at doorstep means no parking infront of house.
Its been in market for a week.
Comparables are in different street and hence values may differ. I am not sure about how many contracts are issued. No pest building inspection reports.
I offered a 30 day settlement period. Thats the only plus.

 

why is that a plus? If the vendor is still looking for a place to move to......

A week is pretty short. Vendors are unlikely to take the first offer especially when it's well below the asking range.

 

The property is vacant and agent was saying it is ready to move in.

 

I had another round of inspection and raised my offer to 810k. He said 840k initially, he was positive, but I haven't heard from him yet. He hasn't cancelled the open house for tomorrow as well.
Is there something I am doing wrong ?

 

Why would they cancel the open? Even if you exchanged contracts today they should still have an open. Your contract would be in cooling off and you might withdraw. And the agent gets more phone numbers.

Without knowing anything about the vendor, one likely scenario is that your offer is lower than they want, and they are waiting to see how tomorrow's open goes. If anyone shows interest they can tell them there is an offer on the table and see if they can flush out higher offers.

This is why you should make offers that expire before the next open. It may force them to negotiate, but if it's too low they just ignore you.

You need to think about this from the agent's, and vendor's perspective.

 

My offer expiry date is today. In a market like this, I am not sure whether agent takes offer expiry date seriously.
It is not too low. I have seen houses which was asking 850k and later sold in 800k-810k ranges.
I have also had couple of instances recently where Agents said they have 850k offer already and then sold for 805k.

So 810k is not too low to ignore I guess, but at the same time agents seem like newbies to realestate and area.
Do you think I should message agent again and ask update? Will that sound like we are desperate?

 

You think your offer is realistic? Stick to it. Doesn't help you with an unrealistic vendor. Those just get withdrawn from sale. The fact that there is no price guide may suggest it's not a serious seller.

The most powerful weapon a buyer has is the ability to walk away.

 

Sure we have decided that we are not going to offer more in any case. What happens after the offer expiry date. If vendor comes back on monday, should I honor the offer or agian negotiate to lower offer?

 

Do you understand what an expiry date means?

After Friday everything is a new negotiation.

 

To be honest no. I only learnt from expiry dates in offer from this forum.

 

Then you will have regrets no matter what happens.

If 810 is the highest you'll go for this:
If the vendor comes back next week to accept your offer at 810, sign it. And feel bad because you think you should have offered less.

If the vendor comes back with a counter, offer 810 again.
Walk away if they don't agree. Regret if it sells higher than 810 especially when Sydney rises again in the future. Regret it even more if it sells at less than 810.
If they agree to 810 feel bad because you think you should have offered less.

Regret if you buy it because the next week there will be another you like better.

The regret is your issue. Learn to walk away. Always a new deal next week. If you do eventually buy.

 

True. Noted that point and sounds correct. Thank you.

 

The property hasn't gone under offer nor the Agent has come back to me. So it seems like an unrealistic vendor as you mentioned earlier.