Hi
This is my first post on here after reading the forums for a while and this is a great place with plenty of info but I need some more help please.
This is a LONG one, sorry.
I am a first home buyer looking to buy a home in SA. My friend spotted a maisonette for me as I am currently living in QLD but am moving back to SA in 2 weeks. Anyway this property was originally put up for sale about 3 1/2 months ago at $80,000 and the seller kept getting buyers wanting to extend their contracts and so he had enough and took it off the market. Recently he put it back on, I think beginning of last week and it a contract was put on at $73,000 but that fell through.
Along comes my friend (on my behalf) has a viewing by the agent who tells her all this while showing the place to her and says seller open to all offers. So my friend explains that I am in interstate so how would I go about putting in an offer. He said to ring him anytime day or night if I wanted to put in an offer. So, my friend rang him at night and gave him (verbally) an offer of $63,000 (mind you this is a basic maisonette no renos done) and the agent quickly said I’ve spoken to the seller just before and he said he is not taking any offers under $73,500. Huh?
Now, my friend said okay we will just leave it then (this was on Tuesday). So I think it was just a bit suss because he said before we made an offer that the seller had just bought another house to live in up the road and didn’t see the point in renting this one out so now he just wants to get rid of it and so that’s when he said “open to all offers seller wants to sell” so thats why I think it was a bit suss. He didn’t ring the seller to tell him of the offer but just told my friend straight away on the phone to her.
Here is where I need some help.
1. Should I put in another offer? Say $65,000 or $66,000? More? My fees on top of this will be just over $2000
2. Do I get my friend to go in to the office and personally get it in writing this time?
3. Other suggestions?
4 Get in touch with vendoe? Is that legal? Too sneaky maybe??
5 I have my finance already pre approved for a set amount.
6. What if the agent insist on a verbal only and will not give my friend a document to make an offer?I’m worried he is/will not give the verbal offers to the vendor or will make out he did. If I ask to make a written offer does he have to give me the document to do this (another RE for a different property wouldn’t do this, insisted on only verbal)
I’m really stuck on this. I’m hoping it hasn’t got another contract on it as the houses there don’t come up too often but I’m not paying over the top for an unrenovated plain jane maisonette when others in the area are all selling beautifully renovated but alas a much higher
price.Also my lender will only lend on ‘subject to valuation’ and approval of FHOG (I’ve never owned any property before).
Do I put theses clauses in the written verbal?p.s. Another note is I got a report on this place and the last “Capital Value” valuation was for $49,000 as of January 2004. (Bought in 1996 for $48,000).
Any quick help on this would be appreciated as I would like to make another offer tommorrow.
TIA
Not sure about SA but I thought if you made a written offer then it hasd to be presented in all states.
A verbal is worth what it’s written on, absolutley nothing.
Put it in writing and then everyone can see you’re serious. Either get the agent to write it up, fax it to you to sign and then send it back. You get you friend to do it with a pro forma and then you send it to the agent.
Maybe with the low offer yo can have a high non refundable deposit if you are certain with your finance and the property is otherwise sound.
I’ve heard stories with the market the way it is now, vendors have been going back to low ball offering buyers to get them to buy after all as there has been no better offers.
If you think you can you can, if you think you can’t you can’t.
Thanks for your reply!
Yes I will only put a written offer in this time.
Do you know if you can put in a written offer if there is a contract on it that has not been finalised yet?How would I give a cheque if I am interstate? Is the cheque refunded if the vendor rejects the offer and how do you know he won’t cash it in?
Hi Breej and welcome
You certainly can put in a written offer even if there is a prior contract but it will be subject to that contract terminating.
You can usually post a cheque with the signed contract (or incorporate a clause saying the deposit will be paid xxdays after execution) but I would hesiiate sending anything to the vendor directly. If there is no agent involved, ask the vendoe who his solicitor is. They would be stakeholder
markk
Happy Hunting
http://www.kentscollections.comHi Breej! Good luck in presenting your written offer; I have a pro forma which I would be happy to email you – my email address is [email protected] if you would like to email me, then I will send it to you.
I guess the important thing is to make sure it is professional – be professional in every dealing with the agent and/or the vendor, they are more likely to take you seriously! Use correct language (no slang!) and be in control – Hey, this is your new home! It’s a lot of money! Make sure they take you seriously!
I’m from Victoria, so not sure what goes on in SA, but in Vic every offer has to be presented, regardless of how ludicrous it sounds! It sounds like the agent is playing games, or perhaps your friend did not ask enough questions at the start.
Good luck!
Cheers,
[biggrin]Jodie B.
Thanks for your replies!
What exactly is a pro forma? I have looked on the net but didn’t find much.
So do any of you think I should just do the negotiations myself through the phone and fax?
Should I just ring up the agent myself ask if the property still on the market and I’d like to make a written offer?
What if the agent says the vendor will only take $xxx amount but that is too high a price for me? How do I really know that this is really the true minimum price that the vendor will take and not just the offer the agent wants?
Can I still put in an offer that is not too low but seems reasonable like a couple of grand lower?I just feel that after the agent said to my friend that the vendor is open to offers because he wants to get rid of the property because he has recently bought another and now he is saying no only $xxx it seems like he is baiting me to up the price. He never said he would produce the offer to the vendor. Basically my friend viewed the place at 5pm and said to the agent that she will email me the photos of the place so I can view the property and get back with an offer, which was made over the phone at about 7.30pm the same day.
I think maybe it had to do with ringing at night and looking like we are ‘desperate’ or really keen. That is why I have waited a few days hoping the agent would ring back and try to negotiate a better deal.
Any other advice how to go about my next step of offering a better offer?
Also, if I find that someone has put in an offer and it’s lower then what he told us can I put in an offer a bit higher?
Thanks
Hi Breej,
So do any of you think I should just do the negotiations myself through the phone and fax?
Should I just ring up the agent myself ask if the property still on the market and I’d like to make a written offer?Just a few extra things. If you go this way try not to make the agent think that you are a seperate and new party in the negotiations. You could start by saying that your friend has introduced you to this property and now you have done your research and have a serious interest in it.
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Might be a good idea to develope a rapour with the agent and then tell him that you are goinf to present a written offer by say “the end of the day” or some other time after you have spoken to your “higher authority” ie the bank/wife/girlfriend etc.
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Present the offer in writing. Do what you say when you say you are going to and make sure you remain credible. Create the impression that if the deal is not to go ahead it will not be because of you but because of some other factor that can be identified eg building report/valuation etc. ie your mind is made up subject to these things.
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Also mention that you are moving to the area but you have alternative accomodation in the interim such as a friends of relatives. It is not a good position in other party thinks you need to settle just to get into the house to live.
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Good Luck.
.Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Thanks Don and Liz.
So since there have been a few days since the first offer this is what I should do? Do you think?
1. Ring up ask if property still on the market.
2. If on market – explain that my friend introduced me to the property and had made a first offer which was declined.
Could I ask if vendor willing to negotiate a lower price? Maybe ask the agent to phone the vendor to ‘see’ if willing to negotiate a deal since I am pre approved and flexible with settlement date? That I only need a valuation to satisfy the lender. Should I also state subject to FHOG approved (lender has put this on my pre approved letter).3. Explain after some further research I am serious about buying this property and want to put in a formal written of offer some time today.
4. Get agent to fax me a copy of the form 1 to my local post office. (I don’t have a fax) Or get my friend to pick one up and fax it for me?
5. Do I need to get a conveyancer first to view form? How would I do this as I’d need to use a SA conveyancer?
6. How many days for this offer to lapse, maybe 7days or less?
7. Anything else I should know beforehand?
I really appreciate all the help that has been given this is a very helpful forum.
Thanks
Here are some comments that may be of use to you.
https://www.propertyinvesting.com/forum/topic/16406.html
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Thanks for that.
Sounds Good. Not sure about the forms you are talking about as we are not from SA and don’t have any property there.
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Don’t know if going to vendor direct at this stage would be appreciated by the agent. Might think you are trying to exclude him/her.
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I think that you have to keep your goal in mind. In this case are you looking at this particular property only or are there others around that could fit the bill.
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I think if you are honest and ethical during the negotiation you will have a better chance at a win win outcome. This does not mean that you have to give away your position without reason or make unreasonable concessions.
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The details of your finance are personal to you and you may/should not need to disclose them . You could mention that finance is pre approved and the name of the institution if you like or even who you deal with if it happens to come up.
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3 working days is probably long enough for the agent to reach the vendor and the vendor to discuss the offer with all the parties involved.
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The reason for the time is that perhaps your are looking at other properties and because you are honest and sincere your want to now the outcome before you make serious offers on the other properties you have looked at? It is not because you are super anxious and need a house to live in ASAP. If you are interested in other properties make sure you are familiar with the details of them and don’t generalise. Research everything around that area. The more info you have the more confident you will be when dealing with the other parties. eg this property has features I like but such and such also has those features. The other property may be listed at the same price but may need no work etc etc. So do the reseach so you can be honest about it. If not agents will see straight through the “spin” and you won’t achieve anything. It takes one to know one etc.
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I would engage you solicitor/conveyancer now so you can include their details in your written offer with the name of your contact person. Adds credibility. You wont get charged any extra for a few phone calls or a sit down before you make your offer and it will help you get things straight in your mind before the whole thing goes ahead.
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Maybe you could rent or borrow a fax machine that runs off your home phone line for a week or month until the property has exchanged. It will come in handy for you over the newxt few weeks.
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Have you thought about a plan B alternative use for this property. ie what would it rent for if you move interstate again etc. Just a thought.
.
Good Luck.
.Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
Thanks for the reply.
I will be staying with friends and will rent until I can find a house to buy.
The other houses for sale are marked up higher say $20,000 and have roller doors, window shutters, sheds etc.
There are no other properties in my price affordability.
I have no clue who should be my conveyancer? I think I will ring my lender now and get some help and then I will ring the real estate.
Thanks again.
who knows I might have been too late.
Hi Breej,
A good conveyancer in SA is Susan Davies – ph: 041) 331-0070. I’ve used her for all my transactions, including when I’ve sold properties myself (no, I’m not an agent – just like to cut out the middleman) and she’s always been very helpful and professional.
Also, in negotiations, always remember that other properties do come along and that at this point in the market cycle, your position as a buyer is only getting stronger.
Stay calm and – when you’ve reached what you think is a fair price that you can easily afford, hold your ground. I’ve had an agent come back to accept an offer 4 days after rejecting it, and I’m sure other contributers to this forum have had similar experiences.
Also – perhaps there are some ways to make the deal sweeter for the vendor? A short settlement perhaps? The more you know about the vendor, the stronger your negotiating power. Turn detective!good luck,
Carlin“I am currently living in QLD but am moving back to SA in 2 weeks”
Ohh, so sorry [eh]
I don’t know what to take of this agent.
I talked to my friend about ringing the agent and she said she would go in and ask for a document to write a written offer.
She gets there asks if the property is under contract and was rudely spoken to. The agent didn’t want to speak to her and some one else said it wasn’t and she asked if she could speak to the agent as he knew the details about this. So he came out and said “know it is not under a contract and what offer did I want to give this time?” My friend said $68,000 and he flat out said angrily “nope, nope we have had a few other people give $66,000 and $69,000 and now the seller will not take anything under $75,000 now.”
(keeping in mind the seller accepted $73,000 last week but the finance fell through for the other party).When my friend asked for the document Form 1 so she could fax it to me so I could fax it back with an offer, he said “no, all she needs to do is fax us a written offer on a plain piece of paper and that’s it”
My friend said he sounded and acted very arrogant and he said the property will most likely be under contract today.
What do you all make of this? Do you think he does not like the fact that she is being my mediator? Or is he angry because he is fed up ‘his’ price is not met?
It is not worth what he wants even if the area is sort after and the other maisonettes are asking $90,000 plus some even have an asking price of $130+ ( doubt they are selling for that though), they cannot be compared with this one as they are all nicely renovated with window shutters, carports with roller doors, new aluminium windows, landscaped gardens, verandah and quality fittings inside like renovated bathrooms etc, and this one has never been renovated except for the carport.
Do you think it would be right to post a letter to the owner (I have his address) and ask him is he willing to negotiate in return for a quick settlement providing everything goes well with my lenders own valuation?
Any ideas? Shall I just wait until over the weekend?
At this stage I don’t know whether to believe this agent. Considering he was polite at first and said ‘open to all offers’ and now only one price $75,000 and that’s final!
I know there may be other homes in the future but unlikely ones that are not renovated because I don’t want a renovated one because then that would be way over my budget.
Thanks
Hi Breej
Im from SA and buy property in SA. I could recomend a conveyancer for you too. Roger Scott from Coneyancing corner in Kurralta park. phone 8371 4811. We use him regularly and highly recomend him. Maybe you could ring all you have been reffered to and go with one that you feel most comfortable with.all the best.
Thanks for your suggestion
Guess I should just forget about this one and hope the market rates bring the price down.
Maybe leave it until next friday and see if the ‘lucky’ agent managed to get his price.
I generally offer half the asking price but will settle in 3 or 4 days. I then up my offer to more than the asking price but offer a three year settlement. I then come in at 75% of asking price with a 43 day settlement with $5000 cash bonus. I also offer the estate agent cash if he can get me a cheaper price. This has worked for me in the past. You need to investigate the vendors. I often hire a private investigator to do this for me, if you can catch a husband cheeting on his wife use this as ammunition.
Knowitall,
People are on here to get some genuine help and be helpful in return. Not to receive useless comments that are ‘trying’ to get a reaction like a TROLL usually does. If you are trying to be a comedian I suggest you look into some courses because you lack that ‘funny’ personality!
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