Forums / Property Investing / Help Needed! / Submitting an offer

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  • Profile photo of Anthony ZanattaAnthony Zanatta
    Participant
    @azanatta91
    Join Date: 2016
    Post Count: 25

    Hi all,

    Buying my first property and new to real estate agent tactics (I think). I’ve been to quite a few open homes and when I go to put a written offer forward using their template, the form always mentions something along the lines of “I’m being honest when I say $X is the most I’m prepared to pay”.

    Is this some sort of tactic to jack up my initial offer, at which point the real negotiations will start, or is this my final number??

    Thanks!
    Anthony

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Anthony many agents use such form (which is not legally binding) as a way of saying to you that they are presenting offer’s all at the same time and leaving it with the seller to decide which one to accept.

    Do up your own template and conditions and merely change the address, price etc for each offer.

    Give them a time frame to come back to you after which your offer expires.

    Sure you might throw a offers out there without success but you will find out who is prepared to haggle and who isn’t.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Anthony ZanattaAnthony Zanatta
    Participant
    @azanatta91
    Join Date: 2016
    Post Count: 25

    That’s a great idea Richard, thanks for the advice!

    Profile photo of MeganMegan
    Participant
    @meganclarke
    Join Date: 2017
    Post Count: 1

    Hi Anthony,

    In regards to the wording of the statement, research has shown that people are more truthful in their answers when they are required to declare their honesty prior to completing a form, application, etc. Perhaps there is some psychology behind their tactic as well!

    Megan

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