Join Australia's most dynamic and respected property investment community

Offer on private sale

Discussion in 'General Property Chat' started by SRD16, 25th Jul, 2016.

  1. SRD16

    SRD16 Member

    Joined:
    5th Jun, 2016
    Posts:
    6
    Location:
    Melbourne
    Hi

    I've made an offer on a private sale today, for exactly the listed sale price.

    REA won't take the offer to vendor today, but wants to meet tomorrow to sign a contract tomorrow and present that. I'm fine with that. But he also has insisted that the process will take until Thursday as there are other offers coming in?

    Is this playing out as an auction in reality and is this normal? Now regretting making an offer first thing Monday morn but was genuinely ready to buy today and leave deposit.

    Cheers
     
  2. HD_ACE

    HD_ACE Game-Changer Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    449
    Location:
    Perth
    Put an expiry date on it, ie 5pm same day. That should limit their time to shop it around.
     
    wylie likes this.
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    It is the selling agent's responsibility to obtain the highest price possible for the vendor. That's his job.

    The mistake you made was not finding out of the seller was genuinely ready to sell today by accepting your full price offer. The agent's strategy was something different than yours. Next time, ask, "What is the vendor's and your selling process for this property here?" ......different plans & process for each agent, vendor and property will exist. You need to find out the rules of the game before you run onto the field and start kicking the ball around. ;)
     
    r3ckless and Big Will like this.
  4. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,546
    Location:
    Melbourne, Australia
    He likely hasn't done his follow up from the weekend.

    Without knowing anything about the property in question things about negotiating. Time is a very valuable tool that most people do not use (which to me you clearly haven't used). What if the property has just hit the market, it could be a very good offer but the hardest thing for a REA to do is convince a vendor of a good offer on the first week. Why? Because the vendor's price expectations go up.

    Put yourself in the vendor's shoes price expectation is 500k before open they have 20 groups through and one person says I will pay 500k but 4 others are interested, do you think your property is now worth 500k? Unlikely, do you think it is worth 480k, very doubtful, do they think the property is now worth 520-550k - I think this is probable. The only way to reduce the price expectation is to have less people interested or interested at a lower level, all of which takes time.

    Putting your offer valid until 5:00pm that today is unrealistic as the vendor might work if you put COB the next day it is more flexible (again you are not using time to your advantage). Also why do you want 5:00 that day, what compelling reason besides 'I don't want you to shop', the agent is working for the vendor and if that is your reason then your offer is still going to be good the next day. What if the REA calls you back at 10:00pm saying your offer has been accepted then what? What if they need to think about it over night? If you say 5:00pm or I will be putting an offer on another property then the agent has a real reason, however what if you are not successful? What are you going to do? Resubmit your offer for 5:00pm that day?

    Don't close doors shut unless you are prepared to walk away as soon as you reopen the door (resubmit an offer) and you give the same stance it is only valid today, there comes a point of the boy who cries wolf.

    If you submit with 5:00pm time bomb on it and they come back with a no and you walk away then fine do it because when they come back to you, you will be in a strong negotiating position.
     
    Ted Varrick likes this.
  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,098
    Location:
    Sydney & Adelaide
    Why is there an agent on a private sale?
     
    Phase2 likes this.
  6. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,546
    Location:
    Melbourne, Australia
    Private as in private treaty, not for sale by owner (FSBO).
     
    Perthguy likes this.
  7. Ted Varrick

    Ted Varrick Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    563
    Location:
    No Mans Land
    It sounds like the agent is playing games. It also sounds like you are serious.

    Roll in to their office tomorrow at 3pm with a cheque for 100% of the sale price and tell them this is valid until 5pm.

    The agent will understand immediately both how serious you actually are and also how they don't have enough time to "do the other offers" ring around.

    I have previously missed out on a property with this very scenario...
     
    Perthguy likes this.