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Time Pressure

Discussion in 'The Buying & Selling Process' started by Leo2413, 24th Aug, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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    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.


     
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  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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

    It's worked well.
     
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  3. juzzy

    juzzy Well-Known Member

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

    God damn sellers market! :p
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    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.
     
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  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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

    Esh Well-Known Member

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    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 :)
     
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  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    I agree. Great point @Esh !
     
  8. Esh

    Esh Well-Known Member

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    Oh thank you
     
  9. Bryan Loughnan

    Bryan Loughnan Well-Known Member

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    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.
     
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    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.
     
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  11. Esh

    Esh Well-Known Member

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    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)
     
  12. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @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.
     
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  13. LMD

    LMD Well-Known Member

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  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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  15. Scott No Mates

    Scott No Mates Well-Known Member

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

    Bird in the hand vs 2 in the bush.
     
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  16. chylld

    chylld Well-Known Member

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  17. Esh

    Esh Well-Known Member

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    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.
     
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  18. Leo2413

    Leo2413 Well-Known Member Premium Member

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    66q sounds interesting :D:p
     
  19. chylld

    chylld Well-Known Member

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    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?)
     
  20. Esh

    Esh Well-Known Member

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    Lol whoops typo!
     
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