Forums / Property Investing / Help Needed! / how long to wait for a counter offer from vendor

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  • Profile photo of poldrapoldra
    Member
    @poldra
    Join Date: 2010
    Post Count: 4

    Hi

    i'd love some avice about how long i should wait for a counter offer before making a higher offer than my original offer or making an offer on another property. 

    I have two properties that i am interested in. one has been advertised at 320k but i've  put in an offer of 295k to start the negotiations. I put the offer in this morning. I have not yet heard from the agent. Should i call them tomorrow and give a higher offer or should i just wait. I could go up another 10-15k but i didn't want to put my highest offer 1st.  I do love this property but  I am willing to walk away and make an offer on another property that i like that has been advertised for $295k.   The properties aren't similar… they are in different suburbs that are not near each other. one is a townhouse and the oher is a villa

     How long should i wait before making an offer on the 2nd property?

    Can i have multiple offers out there? I want one of these properties….i"m willing to walk away from the 1st one but i don't want to lose out on both because i've waited too long.

    Thanks

    Profile photo of poldrapoldra
    Member
    @poldra
    Join Date: 2010
    Post Count: 4

    i should also add that   both properties will have an open house on sat….i figure the vendor of the 1st property  is holding out to see if they get a good offer on sat.    i think i should make an offer on the 2nd property that close to the asking price of 295k tomorrow so i don't miss out on it.

    Profile photo of poldrapoldra
    Member
    @poldra
    Join Date: 2010
    Post Count: 4

    o.k…. i've just had a call from the agent…. the property is under posession by the bank… so i'm waiting for the bank to accept the  offer…..at least it's now a purely business transaction… either my offer covers the banks costs or it doesn't.  I just have to be patient…

    I would love some feedback

    thankyou

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    You are so lucky!  A repossessed property.  With a bit of luck your offer will be accepted and you'll be buying below market value.  Good luck!

    Why not offer on the second property "subject to the first property being rejected"?  I've never done it before myself, but I don't see why you couldn't…  though you might lose your holding deposit…  Not sure if you would need to specify "by when" the rejection would need to be made.

    Did you put a sunset clause on the offer on property 1?  ie say "i offer one trillion dollars subject to this and that and my offer expires at 5pm today so hurry up and decide"

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of LinarLinar
    Member
    @linar
    Join Date: 2004
    Post Count: 567

    You don't make any further offers until you have heard back about your first offer.  As soon as you put in another offer without hearing about the first offer, you weaken your position and could make the vendor think that you have even more money.

    The vendor (or the bank in this case) has three choices, either to accept your offer, reject your offer flat out or reject your offer and make a counter offer.  Wait until the vendor does one of the three.  You never know; your first offer may just be accepted.

    Cheers

    K

    Profile photo of Garry MacGarry Mac
    Member
    @garry-mac
    Join Date: 2010
    Post Count: 22

    Hi poldra

    Throughout my many (wont mention how many) years of buying property, both as an investor and buyers agent, the one thing I’ve learned is that you need to understand the ‘negotiation game’ – some sales agents love to ‘play’.

    While there is no acceptable excuse for a sales agent not to get back to you, when making a offer I always place a time limit on their response. Additionally I invariably have another property ‘on the cards’ should the time limit expire without communication by the sales agent…I can assure you the majority of vendors become extremely upset when they find out their agent failed to respond to offers on a timely basis!

    Good luck with your offer.

    Cheers
    Garry
    Web: http://www.ifyl.com.au

    Profile photo of francinemelbourfrancinemelbour
    Member
    @francinemelbour
    Join Date: 2010
    Post Count: 22

    Take your time , I suggest. Make sure to take your time before sending another offer. That's the best way to do it.

    Profile photo of poldrapoldra
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    @poldra
    Join Date: 2010
    Post Count: 4

    thank you for all the advice…i didn't know that you could put a time limit on an offer… i'll know now for next time.   my 1st offer was rejected on fri morning and i put in a final offer of $307k which was  finally accepted by close of business on friday.  contract is now signed….thanks to the advice i didn't put in a second a 2nd offer prematurely and i waited till the agent got back to me.

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