Hi everyone,
I would love some advice from all the experienced negotiators out there. I have just put a verbal offer on a property that is on the market for $305,000. My offer was $280,000 which was rejected by the vendor, although he did say he was willing to negotiate but did not counter offer. I am only willing to pay up to $287,000 so what would I be best to offer next the full amount or less?
Also, can I put in another offer on a different property at the same time or do I need to wait till I know the outcome of first property offer?Cheers
NonnieHi Nonnie
Is there anything else that could persuade the vendor to drop their price? Found out what their motivation for selling is – they may want a short or long settlement, they may want the opportunity to rent back.
I wouldn’t jump straight to your final price right now – give yourself a little wiggle room.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks Jamie good advice, I will contact the agent and see what may motivate the vendor before making another offer.
Cheers
NonnieHi Nonnie,
you can put as many offers as you like- so long as you have clauses in them so that you only have to accept one. You should alway put a clause in the contracts. Sometimes agents wont accept them. I am a former agent- we liked the offers to be unconditional and that is the way we played the game. From your perspective- just put in the clause and if they don’t like it- move on.
It depends a bit on what you are buying for? Investment? Then don’t get emotional about it. There is always another one coming. If it is your home- or going to be your home- then people get emotionally attached. That makes negotiating all that much harder.
They say to offer less and less increases each time and to take longer and longer to respond. So $283K say, then $284.5K so it seems that you are reaching your limit. I wouldn’t waste too much time on it though- it sounds like you are on the look out anyway.
If your offer is not accepted at $287K- move on.
Good luck!Hi Nonnie,
You need to also prove a point to the vendor: Yours is not the only house in the market.
Keep looking, you can't afford to have tunnel vision.
Call the agent and say that you have made an offer for a similar house in the area and will buy whichever is accepted first. The market being very soft, you'd be surprised how negotiable it becomes.
Take care and good luck.
Angel
Hi Nonnie, I would not suggest this tactic- there is no point to prove to the vendor. Yes, there are other houses in the street. This is why people think that agents are bad- because buyers play these games. It will not get you any where. Just make the offer you can -and be prepared to walk away. Dont get into game playing- just get on with the job.
It does not suddenly become negotiable just because you are looking at other houses- that is to be expected.I am happy to give feedback or advice dealing with agents- any time- just dont play games- they are better at it- its their job.
Cheers
ChristineThanks for all your advice and opinions. I went back with another offer of $283,000 and it was knocked back again so I have left it for now as there are other properties in the area that I am interested in, I guess I can always go back to them in a week or two if it's still available with a higher offer.
Cheers
NonnieSit, wait & go back with the same (or lower offer in 3 weeks if it is still sitting there). The first couple of weeks generate the most buyer interest, then it dwindles and the agent has to work on the vendor to drop his pants oooops price.
Scott No Mates wrote:Sit, wait & go back with the same (or lower offer in 3 weeks if it is still sitting there). The first couple of weeks generate the most buyer interest, then it dwindles and the agent has to work on the vendor to drop his pants oooops price.Totally agree.
If anything, at least you’ve gained some experience with negotiating. It will only get easier from here
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Good idea Scott No Mates and Jamie, thanks for that and yes it's all a bit daunting at the moment but I guess it gets easier each time and it is great to have a forum such as this to get advice and opions from experienced investors.
Cheers
NonnieYes, this is good advice. Scot and Jamie are right. Sit and wait. You can go back in a few weeks but if you are looking at other properties, I am sure you will find something you like in this time. Its not the last property on earth to be sold- there is always one around the corner.
If you think about a contract- and a sale of a home is merely a contract- it is the exchange of the house for consideration. The vendor has the house and its the consideration you are arguing about- what is a fair price for what the vendor has to offer. The value is determined by what you agree on- somewhere in the middle probably- that you agree to make the exchange. It is the price at which the vendor is prepared to let it go. I am not sure the agent has to drop his pants. There is always a buyer- it just comes down to who agrees on the price in the middle. The agent is the guy in the middle. You all seem to think its the agents who play games but here you all are advising a buyer to “play games”??? Hmmm- who plays the games then?Angel, im with you .in todays tight market a clear shot of reality needs to be delivered to the vendor (assuming the agents already done this im sure…..lol.. ohhh and no doudt informed any buyers they have had a flood of offers over the property )
On negotiating ………"Prepare by knowing your walk away [conditions] and by building the number of variables you can work with during the negotiation.. ……you need to have a walk away… a combination of price, terms, and deliverables that represents the least you will accept. Without one, you have no negotiating road map."
Vendor / Agent / Buyer
The one in the middle is the most compromised….. hence who plays the most games as its been put?
Agents…. legends in their own underwear.lol
Make sure you let them know you're leaving the door open while you wait though. "Ok, thanks. Please let them know I'm prepared to listen if they change their minds or want to negotiate, but for now I'll keep looking for something else."
Thanks I will do that in future. I did say I was looking at a few other properties but didn't ask them to let the vendor know I'm prepared to negotiate still if they change their minds.
Just to go a bit left field in regards to negotiating…
Intrigue wrote:Another thing playing on my mind….I know an investor, he is under 25yrs of age and owns in excess of 25 properties. He once made a comment to me that I thought very interesting.
'the negotiations begin after the contract is signed'
Do we have to do things the way they have always been done just because that's what the seller wants or what the agent is familiar with?
Full thread on link below.
[/quote] https://www.propertyinvesting.com/forums/property-investing/help-needed/4335705Very interesting reading beedie thanks for that it's good to have my thinking challanged.
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