Negotiating after B&P results

Discussion in 'The Buying & Selling Process' started by Taku Ekanayake, 11th Nov, 2015.

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  1. Jacque

    Jacque Jacque Parker Premium Member

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    So @Taku Ekanayake how did you go with this? Did you get the discount you were hoping for?
    Would love an update :)
     
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  2. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hi @Simbo,

    You should certainly be able to negotiate a few K off if it is as bad as it may sound.
    Further to @Steven Ryan's comment, if you're going to negotiate a lower PP, I would do this at the eleventh hour before going unconditional. This means they are more invested in the deal to close because the vendor would just want to get the deal over the line (including the REA), even ask for a couple of extensions to let the vendor sweat it out, then negotiate further. As a result, the vendor becomes heavily invested (time wise) in you. I hope this makes sense?

    Hi @Jacque,
    An update on this purchase, I negotiated $6,500 off purchase price of $238K. I did this buy drafting a list of everything that needed repair/replacement and adding a $ value next to each. I didn't get quotes, but it certainly wouldn't hurt to get one. I had three contract extensions and then I asked for the reduction on the last day before going unconditional.
     
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  3. Jacque

    Jacque Jacque Parker Premium Member

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    Well done then @Taku Ekanayake on your persistence. You must be pleased!
     
  4. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Thank you @Jacque. Very pleased with the outcome. Undergoing renos this week and next. Will get revaluation thereafter.
     
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  5. Steven Ryan

    Steven Ryan Well-Known Member

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    Yep, agreed.
     
  6. Simbo

    Simbo New Member

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    Thanks,

    I'll advise the REA there are issues and work on getting a structural engineer in and extending settlement. I'll let ya know how I go...... :)
     
  7. Azazel

    Azazel Well-Known Member

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    If you get some quotes it can help.
    They might give you the option of fixing it themselves.
     
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  8. Nicho32

    Nicho32 Member

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    Those of you who have successfully negotiated a discount, how many offers and counter offers did you make and reject. On a current purchase after the B&P made a request for a price reduction and received a counter offer which I'm not happy with. I'm countering their offer but want to know if this back and forth is typical.
     
  9. eng

    eng Well-Known Member

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    Hey Taku, how did the revaluation go, also any before/after pictures :)
    Congrats on the great buy!
     
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  10. Azazel

    Azazel Well-Known Member

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    Yeah I'm keen to know too, how did you go?
     
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  11. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hey @eng and @Azazel

    Haven't go photos yet, should be getting them tomorrow. Apparently the reno looks great according to my PM.
    Regarding the reval, I have to wait till I get my first payslip from my new job, which I should receive in 23 days (not that anyones counting lol!)

    I will post photos and reval once I have all the details. Sorry of the hold up :)
     
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  12. Azazel

    Azazel Well-Known Member

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    Good stuff.
    Looking forward to seeing the pics.
     
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  13. happychappy89

    happychappy89 Member

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    Just wanted to add my experience. Current deal I'm about to go unconditional on. 3 bed highset house in Slacks Creek, Logan, QLD.

    List price 309k. Offer of 300,350 accepted after another purchaser wanted their contract extended for 30 days due to finance and vendor said no (wants quick settlement). Had B&P done in first 2 days, found relatively minor termite repairs needed to house, no live nests etc. Got another builder out the next day to quote everything that would need fixing (nothing urgent suggested). Quote was 11k. I instructed my solicitor to request 15k price reduction, emailed copies of the B&P reports, along with an itemised list of each thing that needed doing. They countered with 12k. I countered with final purchase price of 286k if agreed today. They agreed. Successfully negotiated 14,650 off for B&P conditions (nearly 5% of my first contract price).

    Now just waiting to tick off final finance clause in the next week and done deal. There's always room to renegotiate. I wouldn't have attempted if it were things I could have spotted myself (layman) and I was already allowing for the pretty rough state of the rental property and minor issues on a 40 year old home when I made my first and final offer.

    The biggest shocks for me in this process (I'm still a newby) was at the second building inspection, without prompting the agent says "I've already spoken with the vendor about your concerns. The vendor is willing to concede to a price reduction in order to proceed with the sale. With the house sitting vacant, and 3 weeks out from Christmas and holiday shut downs..."
     
  14. Shawn

    Shawn Well-Known Member

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    @happychappy89 Mind if I ask if this was on the North or South side of Slacks Creek?
     
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  15. Luca

    Luca Well-Known Member

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    Good read, as usual "buying the problem" is what makes the difference ;-)