Is this too lowball?

An old mate of mine once put in a low ball offer that I laughed at.

Split 3 bedroom 2 bathroom unit in Parramatta. He got it for something like $270k. Rents the top floor as a 2 bedroom unit and the bottom as a 1 bedroom unit.

Long story short, you don't know the vendors circumstances, offer what you feel is right/what you can afford, you may surprise yourself. I would have offered $20k less for my first purchase if I knew what I knew now, buyers agent was quit convincing in telling me I was being silly offering so low.

 

I feel the same way about my IP1!

 

So @Dirk90 how did it go?

 

Nothing so far, I doubt he will come back to me but who knows. Although I do know the owner wants to be out by January so there is still the possibility the owner might become desperate. But in the meantime I will continue looking.

But if something does happen I'll let you know.

Just treating this as experience, I'm hopeless at negotiating .. This is only the 3rd time I have put an offer on a property. Only 1 out of the 3 agents actually took my offer to the owner. On all 3 I started roughly 30k below what I perceived as market value. All 3 are still listed, but to be fair the last one hasn't been listed long.

 

Well you know your weakness so get working on fixing it! This should help- http://www.amazon.com/gp/offer-listing/0205609996/ref=tmm_pap_used_olp_0?ie=UTF8&condition=used but plenty of free articles online of course. Try and find out the vendors motivation for selling and then look for a win/win outcome.

Keep lowballing and move on to the next one, plenty of stories of agents coming back and accepting the original offer.

 

I don't want to hijack this thread but there is a townhouse for sale on the Gold Coast that I just put an offer on. First listed at $335k then dropped to $315k and now $310k...

I have put an offer in of $288k. Is this too low? my max price is $300k for it.

Is this too low ball?

 

Each property is its own deal. Don't just try and lowball for the sake of it, especially in this market. Although if its dropped by that much there might be more issues with it?

 

Maybe offer a shorter settlement if you've got finance and a good conveyancer ready to go. Sounds like they are keen to see it go.

 

Probably something only the seller can answer.

 

As TDK above suggested maybe try and sweeten your offer by offering a quicker settlement (if possible).

Second property I purchased I wasn't even planning on, I was actually driving to another property to put an offer in. However drove past one in same suburb but better location where auction had just completed. Saw agent who I knew and asked how much it sold for. She said it got passed in and told me the price which was a bargain. I told her I'd match the offer but with 1 month settlement instead of 3 months. Vendor accepted it and I picked it up.

 

Yep, I need this! .. haha, much to learn I have

The agent said the owner would most likely sell at 225k. He emailed me with a list of items he wanted me to complete + my offer so he could quickly do up a contract to present to the owner. So obviously he thought he had a sale at 225. But I hadn't even made an offer at this point. But anyway eventually I first offered 200k, then quickly came up to 210k. But the agent still wouldn't budge. He made it clear he wanted 225k before taking it to the owner. He asked me to sleep on it, which ****** me off. So I came back with 205k and said that was it.

True. I sometimes think I could potentially be screwing myself over a good deal for the sake of trying to lowball and get a little extra out of it.

 

Sometimes, the seller may ask the agent to not pass on or reject offers under a certain amount, but that is not what he is saying here from your account.

Also, would depend on market, if it is at the start and rising, you would look back and shrug, if it is at the top, you may be glad you got the discount. I know someone who pulled out over 5k on a 300k deal, fast forward 2 years and it has increased to a point where 5k looks like a silly figure to argue over.

So just have to work out what is going on, then decide, if you will not live in it and plenty on the market, no drama to walk to next one, if you have the time.

 

It's already come down 8% and you have offered 7% under current asking.

May have a shot.

 

Offer them $250k and a short settlement and tell them to take ir or leave it.
Read between the lines, they've had no interest.

 

Hey all,

Thanks for the feedback. I ended up getting the property for $295k.

The one next door sold for $349k last year and had a cosmetic reno.

I ended up offering a 10% deposit and flexible settlement date.

Cheers

Cash Flows

 

That's pretty good, from the original advertisement of $335k.
Nice one.