Time Pressure

Its common sense but I really like to try to employ this in negotiations, especially in stronger buyer markets. This guys books are really good imo.

 

I've put time pressure on the vendor in most of my negotiations.

It's worked well.

 

I'm trying to do this right now, but it's failing miserably.

God damn sellers market!

 

The thing with time pressure is you have to be prepared to walk away. ie this offer expires on Thursday 27/08/15 at 4 pm. You let it lapse, then they do the chasing (or counter). Timeframe has to be realistic ie can't be the same day as you do not know the circumstances of the vendor (yes they may be desperate to sell but not at any price or may be interstate/overseas/out of range/attending to probate/grieving/trying to extricate themselves from an Ashley Maddison created issue etc.

 

haha - there will be a few of these sales occurring right now.

 

Good video. Just came across an owner today who just put an offer on a property last night and needs to sell his Property to move forward. In this occasion time pressure could be used against him. I have seen that the highest offer does not necessarily mean it will get accepted. Conditions are so important aswell. Let's use this owner for example.

1) one offer comes at $600,000, extended settlement
2) second best offer $590,000, shorter settlement.

Owner would pick second because that would be the best scenario for them. Just one thing to think about

 

I agree. Great point @Esh !

 

Oh thank you

 

Completely agree @Esh - there are certain situations in which time pressure or 'playing hardball' will be the best strategy, but there are plenty of times which this isn't the best strategy. The more you know about the vendors situation and circumstances, the better you can select the right tactics to use for that property.

 

I know of one recently which went the same way under similar circumstances, $2.4 with deadline vs $2.55 reasonable price difference however the sticking point was the higher one was subject to P&B and certificate for building over sewer. money wasn't the object for the higher bidder. The lower offer got it.

 

Yeah, it's the uncertainty that owners don't want to accept. The lower offer is more secure because it's a done deal (pretty much)

 

@Scott No Mates I have seen this happen quite a few times when an offer of 66W was made against a higher dollar amount offer. 66W won on many occasions. Its a powerful offer if your able to use it, safely.

 

What is a 66W? @Leo2413

 

http://www.nexuslawyers.com.au/2014/what-is-a-s66w-certificate/

 

I have used 66w a few times (after legal advice).

Bird in the hand vs 2 in the bush.

 

You can still exchange subject to finance with a 66W right? (except for at auction of course.) The article doesn't make mention of that...

 

I

If you do 66w there is no cooling off. If your finance doesn't go through then you loose your 10% deposit. Only put in 66q if you have your finance sorted and building and pest if needed.

 

66q sounds interesting

 

That's what I thought, but I was corrected. As Leo2413 said above, the 66W only waives the cooling off period. The contract can still be subject to conditions like finance (b&p as well maybe?)

 

Lol whoops typo!