Forums / Property Investing / Help Needed! / My current scenario

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  • Profile photo of Dave4455Dave4455
    Participant
    @qprjames
    Join Date: 2011
    Post Count: 15

    Ok I need some advice here. This is my scenario.i have my eye of 4 different apartments.
    I’m looking at buying into an area of Sydney with an over supply of apartments.why you might ask? Well because I like the area and I plan to live there for 10+ years so capital growth is not really that important to me as others. What is important, is trying to get one of the property’s for the best price that I can. The prices are as follows :
    Apartment A – 1.2 mil
    Apartment B – 1.2 mil
    Apartment C – 1.4 mil
    Apartment D – 1.4 mil

    Apartment A and C are on with the same agent. Apartment meant B and D are individual agents.

    I have already offered $100,000 below the asking price for each apartment worth 1.4 mil, and $75,000 below the asking price for each apartment worth 1.2 mil

    I feel these were good offers given the market, but alas they have all been declined. Apartment D did come back with a counter offer, but it was very little in $$ terms.

    So what would the best way forward be? I am a cash buyer and can complete straight away, but also have the felixibility if the vendor requires it. At the right price, I feel I am the ‘perfect buyer’. There aids very little competition out there. I was at the recent open for incspections for each apartment, and I was the only one there the whole time for each one!!

    What tactic would you use to seal the deal on one of these aparments? I don’t really mind which one I get in the end. I would just prefer to save that extra chunk of cash.

    P.s. these are all private treaty sales not auction sales.

    Andy advice would be great on how to proceed with my second offer would be great :)

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi Dave,
    If the sellers can’t see a good deal when it is presented, I’m wondering if you simply need to pay full price.

    However, if you don’t mind “playing games” and are wanting to twist a few arms, you might wish to put a sunset clause into each offer. That clause might simply state that they “Have 72 hours in which to accept (or start negotiations) after which the offer will be void.”

    To ramp it up a little, maybe offer a price that, after 72 hours will DECREASE by $10,000 for each day that passes until another date 14 days into the future. The idea being to “get their attention early” and have them take notice !!!

    What do you think?

    Benny

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Benny’s ideas are great, are you putting a 14 day pest building and finance clause?

    I would also use this as a tool to accept a close offer and then if your aware there are some concerns (most older dwellings will have such)
    this can be a great bargining chips

    e.g.
    you offer 1.1m they come back at 1.18m you setlle at 1.6m then you use the pest and building to knock down to 1.5mil.

    Also offering cash deals without agent (were appropriate can be great)
    having a friend or two low ball the properties or muck with the prices by low balling (not advised in any way but it works for certain people)
    -form good relation with agent to assist getting the price
    -be clear and harsh, even in another offer explain this has a 24 lapse as I have two other properties under offer, so first in best dressed.

    but truthfully there is only so much you can do and patience is important when wanting a good price.
    If it does not stack, move on as hard as that can be.

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