Letterbox Sale

Hey guys, i recently missed out on a property (flat) in the inner north western suburbs of Melbourne. The agent was a real prick, and only gave potential buyers one shot of bidding, as it was private sale. For example: if i bid 260,500 and someone else puts an on offer in at 261,000, the highest offer will be the purchaser, giving me no shot at a counter offer. Turns out i missed it buy $1,100 which im realy pissed off about.

Now its in a block of 12, and i love the floor plan layout, and everything about it. and am willinging to pay what its worth!! So im not looking for a bargain.

How can i approach the other people in the other flats (11). Can i draw up a flyer, and just pop it in there mail boxes.

Saying, Hello, i recently missed out on purchasing a flat in this block, and am willinging to pay X amount, please contact me on 04XX XXX XXX name is John Citizen etc...

What would be the best way to do this, and if they did contact me where do i go from here?

Cheers.guys.

???

Hi wealthyjvd

Firstly I am going to defend the Real Estate Agent.  He/She was not being a prick at all.  Often,  if there is a lot of interest in a property, REAs will tell people to make their best offer.  It is a very common practice in the industry.  You didn't make your best offer, especially if you now say that you would have paid more.  You should have made that offer in the first place.

As to doing a letterbox drop, I wouldn't tell people how much I would be paying.  Just say that you want to buy a flat in that particular block and give your contact details if they are interested in selling.

Cheers

K

Depending on the complex it may have a high number of renters, so if you place something into their letterbox then chances are the owner wont see it.

anyone else??

Thats a bit of a funny thing to say, as a property investor my job is to get the BEST PRICE possible.. so if the offer underneath mine is some $5,000, why should i be obliged to pay more. Its all about fair! And the best way to do this is via (boardroom auction) or the counter offer approach, that way the vendor gets what they were asking, and the buyer doesn't pay a premium.

Um, because getting the BEST PRICE possible means actually securing the property.  Yes, it is about being fair, but the vendor may not have wanted the hassle of offers and counter offers and negotiations.  If the vendor had wanted an auction, he/she would have taken the property to auction.

If the best offer apart from yours was $5,000 less, you would have had the highest offer.  Obviously that was not the case.  You are not obliged to pay more at all.  Unless you actually wanted to secure the property.

K

This process is called a sale by tender or EOI. I recently saw one with best offer over $700k. It went to negotiation with all of the parties who submitted an offer. Selling for $750k within a week.

I am opinionated. Take me at face value, read between the lines.

http://www.reao.com.au/forum/entry.php?80-How-bright-is-your-agent

i agree, however if someone had told me it went for 1,100 more, i would have paid 2k more, understand.

any one for the mailbox idea???

Hi,

I recently missed a property in much the same way. That old learning curve again!

For a place to call home, not an investment, I guess if your heart says "pay this much" you should do it.

As for the letter, think carefully about the content / structure / offer, and try it.

What is the worst someone can say, "No"

Best of luck : ))

TMR

did the agent act in the best interests of the vendor by getting the highest /best price.i dont think so .i only put real estate agents one step above politicians and used car salesmen.his commission on that extra $1100 WAS SAY 3% or $33 meaning the vendor was $1067 which could have paid conveyancing.put a flyer in peoples letter boxes asking if they want to sell.i have.tell them how much the real estate agents commission is and that you are prepared to pay X amount meaning they are  anywhere between 5000 to 7000 better off.make sure you know what the property is worth even tell people to contact a local agent and ask how much their commission is.try to make it a win win

never never never sell