Request advice on this situation

Discussion in 'The Buying & Selling Process' started by property_noob, 1st Oct, 2019.

Join Australia's most dynamic and respected property investment community
  1. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    Hi people. Would appreciate some thoughts or advice on this situation.

    Looking to buy a PPOR for the first time.

    REA introduced us to a property which was not advertised for sale. Asking price was 785K.

    Liked the property and made an offer of 770K. Similar properties have sold in the area around this price range.Offer was rejected.

    Made second offer of 780K and was rejected and REA said vendor will list the property for sale next year with a higher price.

    We inspected the property 3 times and was under the impression that the vendor was looking to sell. But from what it looks like, the vendor had no intention to sell now and was doing an exercise to see how much offers they would get. It does not even look like they would sell for the asking price of 785k if we offered.

    At this stage, anything we should do? Or just move on?
     
  2. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    If you want it, maybe offer what they are asking? Or walk away and see if you can get it cheaper once it is listed officially.

    If you think it is overpriced and worth about $770k then maybe walk away anyway.
     
    Rugrat and Dan Wood like this.
  3. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    I would think that the vendor wants to sell for higher than 785k as they intend to list it higher than 785k next year.
     
  4. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    Then, you pay what they are asking now and see if they will take the asking price, or walk away and wait. Just because they want $785k+ doesn't mean they will get it.

    Do you think it is worth only $770k?
     
    Rugrat and Archaon like this.
  5. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    I am going by what other similar properties have sold for in that area recently and my own research which is around 770k-775k.
     
  6. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Sounds like the seller is just testing the market. Got a 780 offer easy so figures itll sell for more when actually on the market. They will want more than 785, since the 5k difference isnt worth the marketing fees.

    Might be right, might not be. If you see it list and not sell for a while, your offer might be accepted then. Or the seller decides they dont actually want to sell after all.
     
    Rugrat, wylie and Archaon like this.
  7. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia
    Will you be kicking yourself in 5 years time if you missed it by $10-15k?

    Where do you see it placed in 6 months if it comes to market?
     
    Rugrat and Dan Wood like this.
  8. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    Did they come back with a counteroffer? If not, theyre not that serious about selling.
     
    TMNT, wylie and Archaon like this.
  9. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    You make one more offer only of their asking price of $785K. (If they accept you don't have to proceed, unless you want to, as it's only an offer). If they accept you know they're serious. If it gets rejected as you & I both suspect, then you were just being used, it was never for sale at the price quoted. Move on, fast!
     
    Rugrat, luckyone, TMNT and 4 others like this.
  10. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    Only counter offer we got was that the vendor was seeking something close to the asking price which we offered.

    Perhaps.

    I am not sure about this.
     
  11. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    If you really love it offer the max. If you have seen similar houses anyway, wait to see if it becomes available. Best to have a list of possibles.
     
  12. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    Thanks for your advice. Very much appreciated.

    The corelogic report for this property says it was listed for 785K at the beginning of this year with a different REA. It was on the market for 150 days before it was taken off the market.

    Would it be a bad idea to talk to the previous agent about this property to see his thoughts on the vendor and the situation?
     
  13. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,130
    Location:
    03 9877 3000
    This tells me that they don't have to sell, so they're waiting for the price they want. Eventually they may start considering low offers but they don't have anything driving them to this yet.

    Also keep in mind you can't simply rely on the RP Data report's figure. You've observed the rest of the market which is great and this is the real indicator of comparable value.

    Honestly for $15k, if I really loved the property and could afford it, It wouldn't bother me if it were a PPOR.
     
    Rugrat, Jacque, TMNT and 3 others like this.
  14. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    I occasionally do that if its an agent I know. No harm in asking. Just know that there's nothing in it for the agent and he/she may try to switch you over to one of their listings.
     
  15. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia
    There are four tyres on a car, the first tyre that you kick may not be ideal.
     
    Codie likes this.
  16. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    just because you think its worth $x, it doesnt mean it is worth that much or less, nor does it have any reflection on what the owner thinks

    you got to stop taking rejections personally
     
  17. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    I am not taking it personally.

    If the owner is not going to sell at the asking price, I would like to get an indication from the REA on the price the vendor is looking for.

    So far the REA said vendor was looking somewhere around the asking price which we have offered and got rejected and they came back with putting it back on the market next year with a higher price without any indication how much the vendor is looking for.
     
  18. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    10,256
    Location:
    Australia
    If the vendor doesnt have to sell, the agent might not know.

    So what? When the property is actually on the market, with more sunk costs, the vendor might be more open to offers.

    One possibility is that the owner wants some unrealistic price. So it goes to market and never sells. But the owner doesnt need to sell. See those a lot too.

    Offer what you are comfortable with and move on.
     
    Rugrat likes this.
  19. property_noob

    property_noob Well-Known Member

    Joined:
    25th Jul, 2019
    Posts:
    65
    Location:
    Sydney
    Made an offer for the asking price. Got rejected. Agent said vendor seems a bit warmed up with the last offering and if we can go a bit higher.

    Told the agent that we already gave multiple offers and not going to go any further. Vendor can counter offer.
     
    Marg4000, Propertunity and wylie like this.
  20. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    @property_noob

    Reverse the order on them.

    If you still want the property and willing to pay full asking, get the 'seller' to sign a contract at their full price and present it to you for '24 hours consideration'. Leaves you a little room without appearing totally desperate. Then you can sign if you want and no risk of them using you anymore.

    If they refuse to hand you a signed contract at their full asking, forget it and walk away. They're not ready to sell.