Making an offer

Discussion in 'The Buying & Selling Process' started by Anna5524, 14th Jul, 2017.

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  1. Anna5524

    Anna5524 Member

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    Hi all, we made an offer on a house recently at 20k under asking price (initially we went $30k under asking) of 'offers above'. It was knocked back but agent said was it ok if they 'came back to us if circumstances change' ie they don't get a better offer. I would assume that an offer only stands for a certain amount of time ? And as such we will likely then offer lower (back to original offer) if they do come back to us, possibly sensing desperate to sell if we hear back from the agent. Does this sound fair ?
     
  2. wylie

    wylie Moderator Staff Member

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    How will you feel if it sells for the bottom figure of "offers over"?

    When we recently listed for "offers over" we didn't bother even replying to those who offered under that figure. It will depend on what it is worth, how much interest there is in the property and if you are really annoying the vendor by offering $30k UNDER their lowest figure. I'd refuse to deal with you. But that doesn't mean you might not snag a real bargain if the vendor is desperate. I wouldn't feel comfortable offering that low (assuming the "offers over" figure is realistic).

    Edit: Plenty will disagree with me but I'm not comfortable getting a steal at the expense of someone who is in financial trouble. That's just me though.
     
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  3. Skydome

    Skydome Well-Known Member

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    I don't think there's anything wrong with offering 20k+ under on "Offers over" houses, but maybe put the property on a list and note the date and see how long it stays up for if it's still on after say 6 months or more then maybe have a crack at been cheeky.,
     
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  4. Anna5524

    Anna5524 Member

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    I should add it sold 5-6 months ago for $50k under what they put as 'offers over'. There is no way in hell the market has moved that much in 6 months (we only live close by ... it's a ppor purchase). They have put in new blinds throughout but that is not $50k worth. They did seem to get a pretty good deal though as it sold within a week of sign going up in January this year. We were to slow to act then !!
     
  5. Anna5524

    Anna5524 Member

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    I was upfront with the agent about knowing that they had paid $50k under current Asking price, just 5 months ago before I looked through too
     
  6. Marg4000

    Marg4000 Well-Known Member

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    This really is irrelevant.

    Just because they got a bargain does not mean they have to re-sell for a bargain price!

    The criteria is how it compares to similar properties available for sale.
    Marg
     
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  7. pinewood

    pinewood Well-Known Member

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    I would offer what is reasonable for how much you want the place. Just because they come back to you at your offer does not mean you should offer less again, it's not like some recipe you follow, nor does it mean they are desperate, they are just willing to concede to a lower price than before. Yes it is kind of a game but I also see it as a fine balance between how much you want and love the place, what the market is showing and what you are willing to pay for it.
     
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  8. PandS

    PandS Well-Known Member

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    I do this all the time, I offer what I think it is worth and most it under over offer figure.
    If I don't get it I don't really care, plenty of other properties around and If they play ball then the process is quick and painless and I also let them know that if they agree to my offer
    finance won't be an issue and I can move quickly on it and can agree on whatever settlement period they want

    most of the time I get
     
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  9. PandS

    PandS Well-Known Member

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    In a slow market where sourcing finance can be tough and if you are in the position where you can move quickly and finance isn't an issue you let them know because in slow market vendor prefers to have a definite sell for less than an unsure sale.

    When I come to sell and if someone can offer me that assurance I can sell to them for less over one that has to go through the hoop to get the finance because opportunity cost is important to me

    I have seen so many vendors haggle over 10K to an unproven buyer and end up didn't get the sale and costing them hell of a lot more than 10K
     
  10. Skydome

    Skydome Well-Known Member

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    yeah i think it's a better system to use. I've already got like 15 properties on my list to look at for when i do have the money to buy and there's always more coming up.
     
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  11. Antoni0

    Antoni0 Well-Known Member

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    Just offer what you feel is right, if you miss the sale who cares and heaps of other properties out there for sale. If the property is really good it's obvious you're not going to make a deal offering a way under valued price but if it's an overpriced tarted up wreck it might be a different story.
     
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  12. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    I'll be completely honest. I've bought 4 houses that have said "offers over XXX" and I ended up buying them for considerably less than their "offers over" value.

    Depends on how good your negotiation skills are.
     
  13. the world is your oyster

    the world is your oyster Well-Known Member

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    I like add a sunset clause so they have a certain time and date for them to accepct it gives them more added benifet in taking ur offer or missing out :)
     
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