Making multiple offers for same property and where to start negotiating?

Discussion in 'The Buying & Selling Process' started by couq, 25th Apr, 2017.

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  1. couq

    couq Well-Known Member

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    Hi all,

    I have heard that making multiple offers can make it more enticing for the vendor to accept but would like to know a value for a 'condition' in this example days and B&P

    Eg.
    offer 1 $520,000 unconditional no conditions 30 days
    offer 2 $530,000 B+P and 60 day settlement

    The vendors are looking to move, property in Melbourne and after negotiation I am happy to buy up to $550,000. The property is week 3 in an auction campaign
    In Melbourne's hot market are people starting their initial bids at 5-10% below where you want to end up?

    ie bid $500000 to $525000 to end up at $550000 or is it best and last offer?
    Thanks
     
  2. Gockie

    Gockie Life is good ☺️ Premium Member

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    This is what would happen in NSW and I suspect elsewhere would be similar....

    If it's going to auction in a week's time I think any pre auction offer you make would have to be unconditional (excepting the P&B).

    Talk to the agent, agree to a price (they may talk you up... you need to know if it's a bluff or not), if you have agreement do the P&B. You can negotiate the length of settlement though, but choose what works for you. Does it make a difference to you if it's 30 days, 60 days or 90 days?

    If you don't agree to a price and you are still interested in it, let it go to auction.
    Include the modifed length of settlement term in your contract, get that acknowledged by the vendors solicitor, do the P&B. Turn up to auction day and hope you are the highest bidder.
     
    Last edited: 25th Apr, 2017
    couq likes this.
  3. neK

    neK Well-Known Member

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    Not sure about Melbourne, but in most of Sydney if you offer a "subject to" you're pretty much asking to be ignored.
     
  4. RedHat

    RedHat Well-Known Member

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    What does unconditional/conditional offer mean?
     
  5. Joynz

    Joynz Well-Known Member

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    Just make an offer and see what they come back with.

    I'd be surprised if they don't insist on going to auction, though.

    Let us know how you go.
     
    Invest_noob likes this.
  6. Gockie

    Gockie Life is good ☺️ Premium Member

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    Often people will sign a contract but make it subject to clauses.
    Eg. 1. Purchase on condition of finance approved,
    2. Pest and building acceptable to buyer,
    3. On condition of sale of buyers existing property....

    If these conditions are not satisfied, there is no sale. Vendors do not want any of these clauses, because the sale can fall through. Different markets have different "normal" clauses. Eg. Subject to finance isn't generally tolerated in Sydney but is fairly common in Brisbane.
     
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  7. housechopper2

    housechopper2 Well-Known Member

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    Do you think there is significant interest in the property?

    If so, I doubt they would accept a conditional offer in week 3 of the campaign. - Why would they when they can wait a week and get an unconditional auction sale?

    Also need to consider the vendors circumstances. E.g. if its a deceased estate with multiple beneficiaries, its unlikely to sell outside of an auction situation
     
  8. supersam80

    supersam80 Well-Known Member

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    Melbourne is much the same
     
  9. MTR

    MTR Well-Known Member

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    Hot market = cash offer, unconditional
     
  10. Propertunity

    Propertunity Well-Known Member

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    You're not going to have a conditional offer accepted during a 3 week auction campaign unless the market is really slow and there are almost no buyers around.
     
    Brady likes this.
  11. Marg4000

    Marg4000 Well-Known Member

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    Put yourself in the vendor's shoes. Why accept a conditional contract a week or so it of an auction when hopefully there is other interest? To have any chance, you will probably have to offer under auction terms, I,e, no conditions.
    Marg
     
  12. couq

    couq Well-Known Member

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    Thanks guys! I am doing my own comparables of sold properties and will put in a unconditional offer in soon! Do you all think its best to offer best and last offer or offer 5-10% discount with room to negotiate?
     
  13. Gockie

    Gockie Life is good ☺️ Premium Member

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    I'd go 5-10% off my best offer
     
  14. neK

    neK Well-Known Member

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    Whichever price is going to result in no regrets - and the driver of that is how hot the market is.

    Best offer vs discount is how well you get along with the agent.
    End of the day, its a transaction and pay cheque for the agent.
    Agent is a after a quick no fuss sale where everyone is happy.
     
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  15. Wendy Chamberlain

    Wendy Chamberlain Well-Known Member

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    In Melbourne, every real estate agent and agency is different as to how they handle offers. Some want best and final, others let you negotiate (or more to the point, are easier to negotiate with).

    That said, if you are 1 week out from the auction, unless your offer is going to knock the socks off the vendor or there has been dismal genuine interest in the property, in this market, why would the vendor consider your offer or why would you expect the agent to entertain it? At the very least, the vendor can wait until Saturday and hope for a totally unconditional sale, under the hammer.

    Right now, Melbourne is a sellers market. Whilst we're often able to buy properties prior to auction, it is very rare to be able to do so with any sort of condition attached to it. We always try to line up the ducks beforehand (building/pest etc) to submit a clean offer for our clients.

    Do you have reason to believe that they'd look at an offer with conditions on it, 3 days out from the auction?
     
    Propertunity likes this.

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