Let's negotiate, how should I play this.

Game time ladies and gents. Found something we like and ready to negotiate. Have been unsuccessful on the last 3 houses and only just missed out on 2 of them.
This is a private sale and in need of a full renovation. From my research a fully renovated house with all the fruit(massive sheds/move right in and enjoy) should sell for 840-880k. Currently lack of stock on the market and heaps of peeps at the first open.
Asking 700k. A full Reno will be at least 80-100k, shed 40-50k to get it up to standards of others that have sold at top dollar.
So do we go in strong or go low and work up?

 

If it's in a hot market you may need to go hard to pull it off the market..

 

Go strong, efficient and fast.

 

Yes I hear you, never seen so many people at an open inspection in this area.

 

Would you pay above asking price with a time frame? Say 24hrs or offer what's been asked and leave it open?
The last 2 times I put a time frame on didn't work at all, although made me feel better knowing that they got back to me before my offer expired.

 

I'd put in $730 (being 880-100-50 & 4.3% higher than their asking for lack of stock) unconditional with 48 hrs if I REALLY like it
Good luck!!

 

So go in strong and above asking price. The time limit of 48hrs kinda back fires doesn't it? What happens afternoon the 48hours if not accepted? Was thinking subject to placing another offer on another home or which ever comes back first? Which is almost true.

So cash offer, no finance required.
Subject to building and pest
Offer more than asking price slightly, if I really want it.
Settlement to favour vendors, what ever they need within reason.
What else could be done or said to make it as strong as possible?

 

Unless you prepare to pay more than market, otherwise it doesn't matter, there will always be houses for sale, stick to the budget & numbers.
Unless this is a PPOR

 

Yep ppor, looks like I'll be paying more than market. Cheers

 

Making a low ball time conditional offer in a hot market is like bringing a wet lettuce leaf to a knife fight.

 

I'd go in strong at asking of 700. It won't go for less and even consider going 710 or 720 as that still sounds good value.

 

705 unconditional?

 

Is the agent underquoting ?? more competition, I am assuming its Melb/hot market you don't make the rules, the seller does

unconditional/Cash.... above asking price, but still needs to make sense


$710K
$42600 stamp duty?
$50,000 reno

$802,000

Full reno
$832,000

Question to ask yourself is

1. how do the rents stack up, interest rates on the rise?

2. if its Melb, how long will it take to renovate and holding costs during this period? and are you close to peak?

This is not FHB terriority making it higher risk proposition IMO

just my 2 cents worth

 

You always have a way with words. Crack me up

 

Thinking a little higher, but it has to be subject to building and pest. Could have a lot of unforeseen expenses that I would like to walk away if found or renegotiate.

 

I like your 2 cents. Ppor so not an issue, have another place to stay if need be whilst renos take place. Never renovated before so at this stage it seems like a lot of work and out of my comfort zone but I have quoted up some prices through my buddies and happy to try so we get it the way we want it.

Underquoting. This suburb and surrounds are usually renowned for over quoting by 50-100k I've found, the good agents are always spot on with pricing and they sell instantly. This agency is one of the good ones, except there's so much competition in the price bracket 650-750k, I think it might achieve much more than what they have quoted as there's no stock on market with this acreage currenty.

So I've worked backwards here...
100k Reno done properly. 60k done very cheaply, or good if a builder/carpenter/handyman buys it.
10k veranda
Shed 40k
Total 150k.

840-880k gets you something pretty good all done but takes time to come to market. So to me this place doesn't make sense over 720k Max, but to others it might as they may do a cheapo reno or leave it as it. I've never seen that many people at an open before that far from the city, this town is booming. Took me 10 minutes waiting to converse with the agent as people kept asking 100 questions, which was great as I just listened and am using what I heard. Fun times

 

OK, its a primary residence, that changes everything and its dependent on how much you want the property.

Put your best foot forward and if you want it you need to shoot the competition out of the water. Which probably means paying over asking price. Competition will always push prices up, you only need one other person who wants it for this to happen.

Cash offer/unconditional and timeframe the seller wants.

 

Yep will do. Building and pest though?

 

Do you know a builder who can view the property

If it went to auction it would have to be unconditional right?

 

I have a building and pest guy ready to go. Needs 24-48hr notice.
But if I don't put that into my offer then there's no get out clause or renegotiation if structural issues are found.
Private sale.