Making a Killer Offer

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

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  1. Raydar

    Raydar Well-Known Member

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    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?
     
    Raydar, 12th Jul, 2015
    #1
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  2. datto

    datto Well-Known Member

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    Brandish a weapon and make an offer that the vendor simply cannot refuse.
     
    datto, 12th Jul, 2015
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  3. Heinz57

    Heinz57 Well-Known Member

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    Quick settlement, minimum of conditions
     
    Heinz57, 12th Jul, 2015
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  4. Kesse

    Kesse Well-Known Member

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    People sell for different reasons so find out what is motivating the vendor and make an offer to suit.
     
    Kesse, 12th Jul, 2015
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  5. wylie

    wylie Moderator Staff Member

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    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!
     
    wylie, 12th Jul, 2015
    #5
  6. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    In NSW the cash unconditional offer rules supreme and the cooling off can be waived.
     
    BuyersAgent, 12th Jul, 2015
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  7. Raydar

    Raydar Well-Known Member

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    These are all great ideas! What about the settlement period? What is a standard time frame? Can it be negotiated?
     
    Raydar, 12th Jul, 2015
    #7
  8. Raydar

    Raydar Well-Known Member

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    Care to elaborate on definition of 'cash unconditional'?
     
    Raydar, 12th Jul, 2015
    #8
  9. Gvs

    Gvs Member

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    Offer with no conditions (e.g. subject to finance, building inspection etc.)
     
    Gvs, 12th Jul, 2015
    #9
  10. Hodor

    Hodor Well-Known Member

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    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.
     
    Hodor, 12th Jul, 2015
    #10
  11. Steven Ryan

    Steven Ryan Well-Known Member

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    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.
     
    Steven Ryan, 12th Jul, 2015
    #11
  12. Big Will

    Big Will Well-Known Member

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    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.
     
    Big Will, 13th Jul, 2015
    #12
  13. vtt

    vtt Well-Known Member

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    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
     
    vtt, 13th Jul, 2015
    #13
  14. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    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.
     
    BuyersAgent, 14th Jul, 2015
    #14