when to dig in and hold your ground

want to buy a place..been on the market for ages

no other buyers

we gave a fair offer....owner says it not enough

tactics from here?? we feel like we should dig in

would be good to hear others experiences

 

If they want to sell it and there are no other offers.... let them stew.

 

Yeah, let them keep it if they want, if it were me and I really liked the place, I would not burn the bridges, just say you will look for something else but if the vendor has a change of mind to get back to you to see if still interested.

There are plenty of places I see that the agents or vendors had a very inflated expectation, some will not budge.

 

All I can say is, the property deal of the decade is always around the corner.

If you're confident it's a fair price and there aren't any other possible people around then just stay put.

I usually try to have a frank discussion with the agent and show you're serious and your offer is what it'll take. You should be able to gauge if they're going to tell you to beat it or if they might come around.

Did they give you a counter offer?

 

no counter offer....it has been on the market for 6plus months

they have bought elsewhere so need to move too

 

I have found the approach of:

1. Making a cash offer;
2. No other conditions;
3. Short settlement date, 14-21 days;

generally focuses the vendors mind. If they are still not keen to sell, ask them to justify their asking price.

 

I guess they arent too desperate to sell then... low interest rates mean even if they hold two properties both not contributing rent, the mortgages are not killing them

 

If all else fails you could try scaring them out. Without doing anything illegal of course.

Try renting a neighbouring house. Join a bikie gang lol.

Or do something far-fetched like offering more money for the place.

 

More money? Hahaha
That's absurd

 

I said it was far-fetched

 

That is pretty whacky.
What does dig in mean? Just not offer any more and wait?
I would move on. If you get a call, you get a call. But I wouldn't count on it.

 

Sounds like the vendor is unrealistic if not coming back with a counter offer. If of course your offer is fair. Try taking it away from them. Sometimes that can work. You know the old addage you don't know what you have until it's gone!

 

Ask for a counter offer. You have made the first move, they have said "not enough". Then you should ask what is enough? is it the exact ask or are you prepared to negotiate?

Try and also find their motives for selling and how urgent they need the money. Some vendors wont budge at all, some other take time to budge.

It also comes down to the agent and his/her attitude. Some are open to build a relationship with and leverage from, others not so much.

Right now you are taking a swing in the dark. If you really like the property then go a bit higher. If it was me, I would consider other options in parallel.

 

There are so many variables, the market, how many other buyers there are etc...
I've had agents not come back with a counter offer and just say they're looking for something closer to the asking price.
Next.

 

we have made conditions very attractive....

21 day full settlement
200k upfront deposit
7 day building and pest

and are paying a very fair price

they have bought elsewhere, and need to sell

there has been NO counter offers...infact they have increased their price

they have had 2 sniffs in 6 months plus

i suspect they are forking out quite a bit per week

 

What was their purchase price on this property?

 

they

they bought it as land 8 years ago

 

You really only have two options.

Offer more or walk away.
Marg

 

It is hard to comment not knowing how you have dealt with the agent.

In any case what sounds reasonable to do (in parallel with each other) is this:

Firstly find alternative options. Never, ever put all your eggs in one basket when buying property unless if you are prepared to cough up good money. Find yourself a few other options.

Secondly, start building a relationship with the agent. If there are no other buyers and the property has been around for that long, the agent is probably more frustrated than you are. So make friends with the agent and start getting more information out of them in terms of other motivations that may be at play. It can be because they have paid a lot to get the other property and are trying to get it out of you. You can also use this relationship with the agent to up your offer a little bit while saying you are not prepared to pay the full price because...... which the agent can take to the vendor as a case because it is coming from you (the buyer) and not him.

In any case you have cornered yourself by just focusing on one option.

 

You aiming to buy this property as a PPOR or an IP? You haven't told us - my approach is dependant on your answer.

You have advised us twice that the vendor 'needs to move', 'needs to sell' but you haven't advised us when. If it is 30 days, then yes the vendor will be under increasing time pressure. BUT, if there is no deadline or may be it is another 6 months away, then they have all the time in the world. So, once you have advised us the seller's deadline, then we can offer some options. Vendors under time pressure are a lot more flexible than those who aren't.

You have advised us twice that you have offered a fair price. The seller obviously doesn't think so. In negotiating, when someone says to you "You have to do better than that". You immediate response must always be "How much better?". I am not sure from your posts whether you have asked that.

You mentioned that you offered 21 days settlement which you considered to be attractive. Why do you say this? Maybe the seller would prefer a 3-month settlement or 6-month settlement. Have you asked the seller what their preferred settlement period is?

As @Tenex suggested, get closer to the agent. I know a lot of buyers see the agent as 'the enemy' as they work for the seller but I take a different approach. I always let agents know that I know they are working for the seller and it is the seller who is paying them BUT I remind the agent that I am the one providing the money. In other words, it is in the agent's interest, my interest and the seller's interest that we all work together. Win:Win:Win. This doesn't mean I trust the agent, nor does it mean that I believe every word they say nor does it mean that I disclose anything that would be detrimental to me getting the property at the lowest price I can. It just sets everyone's attitude, their tone of voice, etc.

Finally, like others, I feel you have reduced the negotiations down to one thing, price. It is very hard to have a win:win:win when all everyone is focussed on is price. I could be wrong and you might have already done this but I feel you need to open up the negotiations by asking questions about deadlines, about settlement periods, does the vendor need to rent somewhere, about the seller having the stress of doing double moves, about deposits, etc, etc.

Get some wins on the board for the seller that are acceptable to you, work with the agent, remind the agent of your flexibility, consume time so that the seller is put under increasing time pressure, work with the agent, manoeuvre the agent/seller to become more flexible on price, etc, etc.

I am not trying to tell you how to negotiate (maybe I am ) but, to me, there is a lot of information missing (I have alluded to some of this) if you want us to really help you (which we do).