Request advice on this situation

Vendor has come up with a counter offer of 805k which is 20k higher than the initial asking price.

After doing a bit of research found out that the adjacent property which is the exact same design as the one we are looking at and from the same vendor sold about 770k few months ago.

 

Tell the agent $770K is as high as you will go, as value has been established by previous sale.

Then don’t contact agent again. High chance agent will get back to you in a week or two.

 

I did ask the REA how the other property sold at 770k. Their answer was that some tenants did damage to it which the vendor did not want to fix and sold it for 770k. So about 35k worth of damage. Of-course there is no way to verify that.

I don't understand why they even said the asking price was 785K to begin with.

 

You have to make a choice. Do you like it so much that you are willing to pay more than market? If not, either counteroffer, or just leave it and see what happens. You might end up not getting it.

otoh, if you think this will rise over the long term..... ask whether people who bought before the boom think they should have paid another 10 or 20k.

 

Got you to come knocking, didnt it?

Also, the vendor was probably being unreasonable, but agents know some real offers might change there mind.

 

An update:

Vendor finally agreed to a price which was lower than their counter offer. We were fine with that.

We paid the 0.25% and signed the sales contract and waited for the vendor to sign.

Vendor is now unwilling to sign and increased their price by 25K. RE Agent says this has come as a shock to them. I doubt it. But they will refund the 0.25% as their is no exchange of contract.

We withdraw our offer to purchase at the agreed price in writing and running away as fast as we can.

 

Dont run away so fast. Keep an eye on it. Flaky vendors are also prone to panic. You might get it after all if there are no other offers.

Look at it objectively. You dont have to like the vendor.

 

Sounds to me like the agent thought a signed contract and deposit may sway the vendor to sign.
I doubt the agent was shocked when the vendor failed to fall for the ploy.

 

I wouldn't be spending any more time on this property. It's 4 weeks later!

 

You dont have to run away.
Dont take it personally.
The vendor being a dick doesnt change the value or the physical house

You just got to play your game and their game