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I've put an offer in for a property.....

Discussion in 'The Buying & Selling Process' started by JK200SX, 4th Aug, 2015.

  1. JK200SX

    JK200SX Well-Known Member

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    Earlier this evening wife and I put in an offer for a Property and filled in and REIV standard contract of sale.

    The location is in a suburb of Melbourne and we submitted an offer ~15K below the lower range that the agent indicated (and was on the online listing).

    Our terms were 60 day settlement, 10% deposit at14 days, with subject to finance approval, and building and pest inspection.

    The agent said he will discuss with the vendors tomorrow and get back to me.

    So, in the meantime, is there any tips/tricks anyone can offer me to help with the further negotiation that may happen tomorrow?

    Thanks in advance.
     
  2. Coota9

    Coota9 Well-Known Member Premium Member

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    @JK200SX
    Do you know why the vendor is selling?
     
  3. JK200SX

    JK200SX Well-Known Member

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    Owners are 3 brothers, 1 is getting married and think they want cash. BTW, house is leased.

    I also heard on a separate occasion that they want to sell this property to go onto a bigger development?
     
  4. Coota9

    Coota9 Well-Known Member Premium Member

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    IMO this makes the negotiations much tougher as you are dealing with 3 parties rather than only one.
     
  5. xornr89

    xornr89 Member

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    IMO wait fo pest and building inspection reports to come back then you can be the real critic and negotiate if there is ny valid reasons for the vendors to sell to you at a lower price. I negotiate up until the last moment for my property which was in the final inspection phase, where i found minor details to bring the price down e.g. minor tile cracks, bathroom fans, cleaning costs etc...
     
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  6. Be Developer

    Be Developer Property Developer Business Member

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    Seat back, relax and wait:)

    Not much you can do,until you hear back from agent!

    Needless to say, keep looking other properties till you go unconditional on this!
     
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  7. JK200SX

    JK200SX Well-Known Member

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    Just from my observations, everything looks pretty much in order so there may not be anything to negotiate? (BTW the hose is only 3 years old).

    Also, in terms of B&P, I should only order once the vendors sign?
     
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I dont do B&P until vendor signs. Puts you in a stronger position. Dont appear to eager with the agent when he phones back. Always let them think (and you really should) that you are looking at multiple properties and your not pressured at all. A lot of it is a psychological game. If they sense weakness they will attack your offer and terms much harder.
     
  9. JK200SX

    JK200SX Well-Known Member

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    Also, the agent said "...someone is putting in an offer tomorrow...". I find this strange as there was no open for the house for the last couple of weeks as there was a medical condition with the tennants child.

    Also, When does the 3 day cooling off period start?
    Is it the date I sign, or the date that the vendor signs?
     
  10. wylie

    wylie Moderator Staff Member

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    Three brother with one needing cash might be a good thing. If (for example) they were hoping for $15K more than your offer, they each as only "losing" $5K whereas a single vendor would feel it was a "loss" of $15K on the hoped for price. Sit tight.

    Cooling off starts once all signatures are on. Until then it is not a contract.
     
  11. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Whether it's true or not he's messing with you. Personally I'd up the ante too,letting him know I'm also looking at another contract for a place that's even more within my budget.
     
  12. S.T

    S.T Well-Known Member

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    May want to look at adding an offer expiry date with your offer for the next property. 48 hour period should get the agent moving quickly so you can drop this place and look for another if they don't respond.
     
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  13. JK200SX

    JK200SX Well-Known Member

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    Just to put the topic into perspective, the property is in Mernda. Going by online data, the land was purchased in 2011 for $205,000, and a house was built in 2012 for $152,000 (this was shown in S32). My offer was in alignment with these 2 figures.
     
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  14. wylie

    wylie Moderator Staff Member

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    Adding up the land price and the build price doesn't give you a "what is it worth now" price.

    I'm guessing you've done more homework that that, and have priced it according to similar properties in the area?
     
  15. JK200SX

    JK200SX Well-Known Member

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    The agent has just come back to me saying that the vendors are not happy with the terms and conditions, and they have come back with a counteroffer at 395K (ie at the top end of their band). I gave the agent my email address and asked him to email back rheir counteroffer.

    What tactic next?
     
  16. wylie

    wylie Moderator Staff Member

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    You offered $15K below the low end of their range. They've counter offered at the top of their range. What is the lower figure of their range?

    What do you think it is worth compared to similar properties?
     
  17. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    And you can only do this in a slow market , wish we could do it in Sydney or NSW Central Coast but agents wint budge.
     
  18. JK200SX

    JK200SX Well-Known Member

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    Their lower figure in the range is 365K

    I would tend to think its worth based on looking at other properties.
     
  19. The Y-man

    The Y-man Moderator Staff Member

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    @JK200SX

    You have basically 2 options.
    1. Wait for their next move. Tell them you are looking at other properties.
    2. Up your bid.

    NOTE: Just to let you know, any agent who is doing their job should be calling every other party that came through the opens saying 1. a genuine offer has been received 2. that the vendors have named a price

    The Y-man
     
  20. The Y-man

    The Y-man Moderator Staff Member

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    FYI the standard REIV contract form has a 3 business day expiry of offer.

    The Y-man
     
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