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Which offer would you choose?

Discussion in 'The Buying & Selling Process' started by Tillie, 5th Sep, 2015.

  1. Tillie

    Tillie Well-Known Member

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    A friend is selling her house and received two offers. One with a price tag of $1.525m unconditional 90 days or another one on $1.58m but with weird conditions. The second offer is subject to the purchaser being able to secure council approval for childcare centre to his block of land by the end of October. She has tried to sell her place over 2 months now and these are only offers.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Unconditional every time
     
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  3. S.T

    S.T Well-Known Member

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    1st one, no brainer
     
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  4. Tillie

    Tillie Well-Known Member

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    By the way have you ever heard about an offer with so weird conditions than the second offer?
     
  5. S.T

    S.T Well-Known Member

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    Sure, I wouldn't call it weird - sounds pretty intelligent!
     
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  6. OC1

    OC1 Well-Known Member

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    Not weird at all, but you should expect more money in return for those conditions. In this case i would take the first offer and start to mentally spend the money :)
     
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  7. wylie

    wylie Moderator Staff Member

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    Unconditional offer... no brainer if I was selling.
     
  8. bythebay

    bythebay Well-Known Member

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    Does the first offer meet your friends expectation?

    The buyer expects your friend to take the first offer over the second.

    The second offer is to make your friend think the first offer is a better offer than if it was made on its own.
     
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  9. Chilliblue

    Chilliblue Well-Known Member

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    As the saying bird in the hand. 1st one.
     
  10. wylie

    wylie Moderator Staff Member

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    Are you suggesting the agent has made up the second offer? If they were going to do that why complicate it so much? What if vendor accepts the made up offer? I doubt an agent would take such a risk.
     
  11. Bayview

    Bayview Well-Known Member

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    Only two offers in 2 months....

    Unconditional.

    The saving on the interest on her loan alone would possibly cover most of the mucking around time with offer no.2.
     
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  12. Esh

    Esh Well-Known Member

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    @Tillie i would be curious to check for council dcp conditions for child care. If you want I can do some research for you(pm the address)
     
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  13. Agent99

    Agent99 Well-Known Member

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    And if the council wont approve a child care centre and the conditional offer is no longer ???
     
  14. CU@THETOP

    CU@THETOP Well-Known Member

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    First offer but make sure you get a decent deposit. I would also confirm with the agent they won't charge commission if the contract falls over and you forfeit the deposit from the buyer.
     
  15. bythebay

    bythebay Well-Known Member

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    Of course that's not what I'm suggesting. Why would any agent make up an offer and assume such an unnecessary risk.

    The two offers are genuine offers from the buyer. As someone who has made multiple offers on properties in the past I just wanted to share that when buyers make multiple offers sometimes they have a preference on which one they would like the vendor to take and the buyers can structure their offers in a way to steer the vendor towards accepting their preferred offer. In this case I'm fairly certain the buyer wants the vendor to take the lower price hence why he has attached conditions to the higher offer creating uncertainties the vendor may not wish to deal with. By throwing In the higher offer it makes buyer look more generous than they are as it creates the perception that they are prepared to pay more but the vendor has chosen to take the lower offer out of own volition.
     
  16. Esh

    Esh Well-Known Member

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    From my understanding I thought it was two seperate buyers
     
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  17. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Unconditional - simple.

    That's a lot of risk in sitting off market for odd conditions.
     
  18. bythebay

    bythebay Well-Known Member

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    Oh I see. I misunderstood. Thought the offers came from the same buyer. That explains wylies comment. I was at cross purposes.
    Apologies if I confused anyone.
     
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  19. Tillie

    Tillie Well-Known Member

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    I had a similar reaction than you guys. Of course she should take the first unconditional offer. But maybe it is easier to say than it is not your own money. The difference is as much as $50k, which is a lot of money to her. o_O

    Also getting the approval for childcare centre is not under her control or influence. The offer was subject that a purchaser receives approval for the childcare centre for the completely separate block of land that he owns and is in the process of selling. I assume that his contract of selling his land is subject the council approval for childcare centre.

    I feel that I can not say to her to take the 1st one, even if she is pressuring me to tell my opinion. I am not comfortable to take responsibility her to loose $50k and maybe regret it later. My only advise to her so far has been to assist her by making a list of pros and cons. with her and the list might help her with her decision.

    Esh, I'll send you a private e-mail about the address for the proposed childcare centre. Thanks for the offer to check council requirements.

    And yes, the offers are two separate ones from the different people. Sorry if my original message was confusing.
     
  20. jas

    jas Member

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    $50k difference on $1.5M?

    Not worth the bother I think. Possibly go back to the 2nd buyer and see if they will raise it for her to take on that risk. Otherwise, I'd be taking the first offer.

    If she's pressuring you for an opinion, she obviously values it. And you seem to have some accord from the replies.
     
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