Join Australia's most dynamic and respected property investment community

Making a Killer Offer

Discussion in 'The Buying & Selling Process' started by Raydar, 12th Jul, 2015.

  1. Raydar

    Raydar Well-Known Member

    Joined:
    6th Jul, 2015
    Posts:
    306
    Location:
    Newcastle NSW
    Does anyone have any ideas about how to make 'a killer offer'? One where it's not just the highest price gets excepted. Are there other ways to 'add value' to the offer to make it more attractive over rival bids?
     
    Fungus likes this.
  2. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,392
    Location:
    Mt Druuiitt
    Brandish a weapon and make an offer that the vendor simply cannot refuse.
     
    Raydar likes this.
  3. Heinz57

    Heinz57 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    493
    Location:
    Brisbane
    Quick settlement, minimum of conditions
     
  4. Kinnon Bell

    Kinnon Bell Finance Broker

    Joined:
    14th Jun, 2015
    Posts:
    477
    Location:
    Cairns
    People sell for different reasons so find out what is motivating the vendor and make an offer to suit.
     
    Kevin Lam, Kael and Be Developer like this.
  5. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    2,940
    Location:
    Brisbane
    I like cash unconditional offers. Before the cooling off period was introduced it was powerful. Still is but cooling off period makes it less so (but still better than an offer with building and pest and finance clauses).

    I need to feel comfortable though - no safety net!
     
  6. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    19th Jun, 2015
    Posts:
    436
    Location:
    Oz
    In NSW the cash unconditional offer rules supreme and the cooling off can be waived.
     
    MTR and Raydar like this.
  7. Raydar

    Raydar Well-Known Member

    Joined:
    6th Jul, 2015
    Posts:
    306
    Location:
    Newcastle NSW
    These are all great ideas! What about the settlement period? What is a standard time frame? Can it be negotiated?
     
  8. Raydar

    Raydar Well-Known Member

    Joined:
    6th Jul, 2015
    Posts:
    306
    Location:
    Newcastle NSW
    Care to elaborate on definition of 'cash unconditional'?
     
  9. Gvs

    Gvs Member

    Joined:
    6th Jul, 2015
    Posts:
    14
    Location:
    Adelaide
    Offer with no conditions (e.g. subject to finance, building inspection etc.)
     
  10. Hodor

    Hodor Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    742
    Location:
    Homeless
    Once contracts are exchanged you are obligated to buy the property, no cooling off. Hence vendors like it as there is no chance of you changing your mind.

    If you can't get finance, or can't settle for any reason you are in deep doo doo.

    Different settlement time frames, lease back options, bigger deposits can all "add value" to your offer. It is about finding what the vendor wants and is willing to give in return, each situation may be slightly different.
     
  11. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    This. Ask the agent. Find out if things like a short settlement, rentback etc are of interest to the vendor ad offer accordingly.

    And of course, in NSW a strong unconditional won't go astray.
     
  12. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,562
    Location:
    Melbourne, Australia
    Find out what the vendor is after and make your contract to suit them.

    If they want long settlement as they are still looking for a property 10% deposit with 120 days settlement. If they have bought and settle in 45 days, put settlement in 45 days.

    make is unco and if you do this then you should beat someone on the same price (or slightly better) however if they meet the vendor needs more then you wont win.

    Put yourself in the vendors shoes, if you have two offers one is 500k unco and the other is 501k STF B&P etc which would you pick? Probably the 500k as there is less risk. How about at 502k, 503k? 510k? 550?

    I would have to assume at 550k even with all the clauses you wont win as it is 50k (10%) more.
     
  13. vtt

    vtt Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    254
    Location:
    Inner West, Sydney
    Make it as easy as possible for the seller. No changes to the conditions of the contract, nothing complicated. If it's a family home then write a touching letter to the owners about how you want to raise your family there and how you will care for and cherish the home. This is very common practice in the USA, and often sellers won't accept the highest price but the best letter.

    Find out what is the motivator (as others have said) and appeal to that. Failing that, throw money at it. That often works.

    vtt
    :D
     
  14. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    19th Jun, 2015
    Posts:
    436
    Location:
    Oz
    Totally it can be negotiated(sometimes). I have had owners desperate for short settlements and others wanting long. Both can make a great outcome if you take the time to listen to their needs and can help them out.