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

I wouldn't be taking any notice of what the agent says it all.
Tell him take it or leave I,it is what it is.

He'll get back to you in a month or 2 when the vendors expectations have been made forcibly more realistic.

 

You can definitely try to negotiate a discount after Pest and Building, it may not change the contract price but it may be put through as an adjustment.

I suggest after getting the contract and the P&B put your requested discount in writing citing the specific pest and building issues with a costing of how much it would cost to rectify each issue. The seller is unlikely to want to lose you as a buyer. Note they may decide to meet you midway or not at all then you have to decide if their offer is acceptable to you.

 

Completely agree.

Its good strategy/business

And its perfectly reasonable imo.

 

Hi Gockie,

Thanks for the post ...

This sounds good. However, my understanding is that after signing the Contract of Sale, the Purchaser becomes legally bind to go with it and can't pull out due to minor issues reported in Building Inspection report (as long as nothing major structurually or termites).

I tried requesting that the Builder fix the minor issues, but the vendor's conveyancer replied saying the vendor is not legally required to fix minor issues and not going to do it.

Now, if I try asking for a discount/ adjustment to fix the issues, they would say the same thing again, and I guess I have no option because the contract has been signed and I guess I can't threaten to pull out?

I can negotiate but on what grounds... I can't say that I would not go ahead with the purchase if no compensation is offered...

Please suggest...

Thanks

 

@AusMover Did you put subject to a satisfactory/acceptable pest and building clause in the contract?

(Satisfactory/Acceptable being "to your satisfaction")

 

Yep as Gockie said, hope you had a B&P clause and "to your satisfaction".

 

Hi Gockie,

Very unfortuante and naive on my part .... the key words "satisfactory/acceptable" are not available in the Clause...

The Clause only says " This contract is subject to the Purchaser obtaining a building inspection report and/or a termite inspection report." ..... Later then says, "...... and in the event that either or both of the said inspection report any major structural defects or termites, then:" ....

Hard luck .... even the Conveyancer didn't suggest putting "satisfactory/acceptable" ....

Lesson hard learned...

Thanks a lot for your reponse and for pointing this out....

Best Regards

 

Thank you Leo .... Just replied ....

Hard luck on my end

 

Your solicitor is absolutely terrible imo.

Lesson learned though.

 

sorry mate.. hmmm your only thing you might be able to do is bluff.

Ask them to at least refund X amount, or you will find it very hard to continue with purchase (try to create doubt in their mind that you might actually be stupid enough to pull out). I know you have no legs to stand on here cos they can just keep the 0.25% but in the odd chance they don't want to go through all this nonsense again they just MIGHT offer something back... if they still refuse... your bluff is over and you just have to eat it . sorry buddy.

 

I agree with Leo.... and yes, you didn't make a good choice in your solicitor/conveyancer.... Sorry to say that.

 

Thank you Leo & Gockie! ... Will think about it....

 

np. Best thing you can do for the future is to learn as much as you can. I have come across in a few books how B&P should be termed to protect the investor. Anyway lesson learned mate, we all make them.

Good luck! and let us know what happened.

 

Out of the 10 properties that I've bought, I've bought two IPs below the lower end of the price range that was given and my initial offer for my PPOR was below the "offers over" price. I ended up paying just over that figure in the end, but would probably have paid more if I hadn't made a lower offer before.

There's nothing wrong with a cheeky offer. I don't make insulting offers though as I find them to be counterproductive.

 

So if a vendor was asking say... 575k for a property, does anyone consider offering 550k as 'lowballing'?

 

Asking for a 4% discount is not lowballing!

 

Definitely not. A vendor would be happy to get an offer of 550k on a property asking 575k imo. Solid starting point for negotiations for the vendor.

 

I once offered 630k on a property asking 690-730k plus and got it for 640k. I'm sure that would be considered low balling then.. I mean offering 550k would have just been ridiculous I agree.

Edit: Having said that, I have seen some people make offers 20% below asking and get accepted, but that was in slump market times. some of my favourite times.

 

That can work both ways,,first of all with 550k on 575k you have to go up from 550k then you would be looking over the shoulders of more experienced investors who know the value,there has been 2 sets of real estate agents walking the street in the last few days young 20 something well dressed people ,some with 2 pages of recent data on sales time what I paid 27 years ago telling me what they can get in dollars terms today so many hungry just for a simple listing..people have to be willing to adapt,rather then focusing on the unfairness of it all..

 

It really depends on the market and the vendors motivation for selling.

If the market is flat and you have a motivated vendor for 1 reason or another, then history has shown me that almost anything is possible. You would think in flat or average moving markets, all the savvy investors would be there buying creating a ton of competition... just not the case. Not enough of those type of investors to make much competition in flat/negative times, imo.