Unsure how to play this offer game

[catcha]

Hi All,

So today I went and had a look at the townhouse I was interested in it was Advertised at From 470k. After a bit of looking and working out if it was the right place we decided to test the waters.

I wanted to start it off at 425k but agent told me that its not even worth her while writing it up, and she as had offers of 450k but has also not written them up and presented to the vendor.

I probably would of offered the 450k but didn't want to lay all my cards down. but even then she would not have bothered.

Maybe i'm dreaming or maybe the vendor is holding out. all 3 have been on the market for nearly 5 months with 1 just being sold recently for 470k

This is my first time to put an offer on a property, any advice would be great.

 

[AlmostBob]

some things I find

• the REA is not always strictly truthful
• the REA works firstly for the REA secondly for the seller, who both have a vested interest in pushing the price up
• purchasers decide the value of the property, not the vendor or the REA
• walk away is a negotiation tool
• make the offer, as you see fit, 24hours expiry
• make offer on another property with a different REA from the same agency 23 hours later and watch the first jump to get a reply back to you
• the signature on another member's posts
  "the deal of a lifetime comes along every day" make tomorrow's deal​

we had REA refuse to present 2 offers, we own the 11 & 5 unit buildings they refused to present.

 

[HomePage]

Say to the agent. "Thanks for that. I'd like you to formally submit my $425K offer to the vendor anyway, you know, just in case one of the other (likely BS) offers falls through". Don't say the (likely BS) bit - it's implied

 

[INVSTOR]

If its in Perth and been on the market that long it must be overpriced and the vendor must be not very negotiable. How much do you want the property? How much do you think it's worth comparing it to other sales prices for similar properties? If one sold for $470"000 I'd assume they want $460-$470000.

 

[chilliblue]

Make the offer you want in writing to the agent with a 48 hour sunset clause and copy in the solicitor.

 

[MKP]

The main thing is to work your price and be prepared to walk away. Property market is unpredictable.I have seen:
1. a house that was listed for $419K did not get sold for ages; then they change the strategy to offer above $400 K. Its SOLD for $435K.
2. a house listed for offer above >$325, then later sold for $311K
3. a house that was originally listed at offer above $385K; then revised to offer above $369K simply because they want to get more people through. Its sold for a fair price of $385K (the estimated value is around $407K - range $355K-$461K)
4. a house listed for offer above $389K; got an offer of $390K refused by the vendor; now has to be listed at offer above $390K for legality reasons.

So, it is important to do your own homework and come up with the value you willinbg to pay.
MKP

some things I find

• make the offer, as you see fit, 24hours expiry
• make offer on another property with a different REA from the same agency 23 hours later and watch the first jump to get a reply back to you
• the signature on another member's posts
  "the deal of a lifetime comes along every day" make tomorrow's deal​

we had REA refuse to present 2 offers, we own the 11 & 5 unit buildings they refused to present.

 

[CHAOS]

A few years ago we made an offer on a PPOR. The RE laughed at it and said he would not take it to the owners. I reiterated that we were making a formal offer and that he had to take i to the owners. He called a few hours later and said the woners rejected it - whether they did or not or whetehr he was playing us I don't know. Anyway we walked away.
Over the next few weeks we received several calls from this agent - Did you see the house in the paper? Did you see the price has droppped? Oh and do you see the price is now the same price you offered? We simply told him we were not interested anymore.

Hw did us a favour rejecting our offer becasue it gave us extra time to consider what we were doing and why - that because that purchase would have been a mistake for us.

 

[catcha]

Thanks all, I think If I had pushed the your "under obligation" she would of just walked away.

I did a bit of research and payed for the sales data on that strata, indeed 1A did sell for 470k but 1B,1C is still on market as we speak.

I looked up old listing and check it all

Feb 2009 $599 1A
Nov 2010 $550 1A
Sep 2011 $525 1C
May 2012 $480 1C

I also looked up REFind $449 reduced by $21,000 (4.47%) on 19 July 2012
but when I click on domain.com.au link it takes me to the ad and from $470k. How accurate is REfind ?
http://www.refindhouseprices.com/realestate/WA/Morley/8889463

I was not in love with the place but the location seem good to me just across from a shopping centre and bus station 5 mins away. I did notice on the Saturday inspection it was quite noisy given its beside a road. But hey for the right price like most I would of put up with it. My budget would of been max 450k but the less the better in hindsight maybe I should of offered 450k best price forward like some say on here.

I also wanted to put in and offer on another place it was brand new 440k advertised 430k I could have, I wanted him to drop 10k to 420k but he refused. I walked on that as well. I guess if I see something that almost ticks all the boxes and can see myself living in it long term i'll pay the asking price, have yet to come across it yet

 

[Jtkumnick]

The agents first obligation is to put a deal together. If they thought you had a chance at your price, they would have taken your offer to the owner immediately.

If you want an answer, just put your offer details in an email and ask the agent to forward it on to the owner. Contrary to popular belief, agents NEED offers (be them low or otherwise). Its their only job, to bring the owner offers. What the owner does from there is their problem.

I think a lot of advice people are posting implies that the agent isnt taking your possibly winning offer to the owner- I HIGHLY doubt that is true.

If your offer is significantly lower than previous offers, hes not going to waste his time.

The difference that a $20,000 price increase makes to an agents commission (after taking franchise fees, office fees, splits etc) is so negligible that its pretty unlikely an agent is going to risk losing a deal to wait for a better offer, to try to make more money for themselves.

I think its time to face reality. You made a low offer and it got rejected, no foul there, Try again!

 

[catcha]

The agents first obligation is to put a deal together. If they thought you had a chance at your price, they would have taken your offer to the owner immediately.

If you want an answer, just put your offer details in an email and ask the agent to forward it on to the owner. Contrary to popular belief, agents NEED offers (be them low or otherwise). Its their only job, to bring the owner offers. What the owner does from there is their problem.

I think a lot of advice people are posting implies that the agent isnt taking your possibly winning offer to the owner- I HIGHLY doubt that is true.

If your offer is significantly lower than previous offers, hes not going to waste his time.

The difference that a $20,000 price increase makes to an agents commission (after taking franchise fees, office fees, splits etc) is so negligible that its pretty unlikely an agent is going to risk losing a deal to wait for a better offer, to try to make more money for themselves.

I think its time to face reality. You made a low offer and it got rejected, no foul there, Try again!

Thanks for that, Maybe I should of put in my best off of 450k and be sidelined like the rest of the others. its a good learning experience and the advice here has been fantastic

 

[monalisa]

So, it is important to do your own homework and come up with the value you willinbg to pay.

Do you mind sharing what legality reasons you are refering to?

thanks
Mona

 

[INVSTOR]

I didn't think there were any laws. I contacted reiwa one time when the agent wouldn't present my offer unless I upped it by $5000. I had reached my borrowing limit. REIWA told me not to worry about it and move onto another property. I ended up going halves in the property with someone else and offered $5000 more and got it.

 

[devank]

[*]the REA works firstly for the REA secondly for the seller, who both have a vested interest in pushing the price up
[*]make offer on another property with a different REA from the same agency 23 hours later and watch the first jump to get a reply back to you

Regarding the first point - I think REAs are generally after a quick sale with min effort rather than the highest price for the seller.

Thanks for the second point. Never thought of that

 

[oracle]

Thanks for that, Maybe I should of put in my best off of 450k and be sidelined like the rest of the others. its a good learning experience and the advice here has been fantastic

If I were you I would never ever offer the highest price I am willing to pay unless it would seal the deal for me.

If your limit is $450K and the agent comes back with $455K to seal the deal what are you going to do?

Always have some powder dry in negotiations especially when the market is not booming IMHO.

Cheers,
Oracle.

 

[jackbak]

Hi All,

So today I went and had a look at the townhouse I was interested in it was Advertised at From 470k. After a bit of looking and working out if it was the right place we decided to test the waters.

I wanted to start it off at 425k but agent told me that its not even worth her while writing it up, and she as had offers of 450k but has also not written them up and presented to the vendor.

I probably would of offered the 450k but didn't want to lay all my cards down. but even then she would not have bothered.

Maybe i'm dreaming or maybe the vendor is holding out. all 3 have been on the market for nearly 5 months with 1 just being sold recently for 470k

This is my first time to put an offer on a property, any advice would be great.

If one has just been sold for $470 then common sense says they are holding out for $470. An offer of $425 is too low if $470 is the market price.

See if you can find any differences between the one you want and the one that sold for $470 and then say "I'll offer you $450 because the one that sold for $470 has a bigger courtyard" or better view or whatever it is you can find that works in your favour...

 

[MKP]

Hi Mona,
Apparently if a house is advertised for >$Z and there is an offer of Z+1 but is rejected by the vendor, then it has to be readvertised as price >(Z+1), because if it is still re-advertised as price > Z only it could be viewed as 'misleading'. REA told me this, but I haven't got legal reference to it.
May be someone alse has came across legal case on this?
MKP

Do you mind sharing what legality reasons you are refering to?

thanks
Mona

 

[Nooob]

...I looked up old listing and check it all

Feb 2009 $599 1A
Nov 2010 $550 1A
Sep 2011 $525 1C
May 2012 $480 1C
...

Information is your weapon, don't hide your weapon.
Show them how holding this property is a loss

Note: with what I'm reading it doesn't look like the best property to buy ATM but wait and monitor to see how much will they advertise the other units. Don't get this one while the vendor is hyped

 

[catcha]

Information is your weapon, don't hide your weapon.
Show them how holding this property is a loss

Note: with what I'm reading it doesn't look like the best property to buy ATM but wait and monitor to see how much will they advertise the other units. Don't get this one while the vendor is hyped

Its not perfect, but I think personally from a Renters point of view is a great location, close to public transport huge shopping centre and the area has everything. Why the other two have not sold i'm not sure. oh well i'm putting in a final offer today of 440k I may get burned but who cares.

But i'll be inspecting a rear villa this Sat and if I like it will purchase it, and i'm willing to pay the price for it without going to hard on the offer unlike the one above

 

[knightm]

I didn't think there were any laws. I contacted reiwa one time when the agent wouldn't present my offer unless I upped it by $5000. I had reached my borrowing limit. REIWA told me not to worry about it and move onto another property. I ended up going halves in the property with someone else and offered $5000 more and got it.

REIWA represent the agents! Perhaps fair trading or the ombudsman?

 

[travelbug]

Hi Mona,
Apparently if a house is advertised for >$Z and there is an offer of Z+1 but is rejected by the vendor, then it has to be readvertised as price >(Z+1), because if it is still re-advertised as price > Z only it could be viewed as 'misleading'. REA told me this, but I haven't got legal reference to it.
May be someone alse has came across legal case on this?
MKP

Thanks for that info. It clears up a question I had yesterday.
I saw a property advertised for "offers above $620K. I looked it up on RPdata and it was listed in April "offers above $590K then in May at "offers above $600K. I was wondering why they were putting it up when it had been on the market for 4 months. Wonder what they "really" want?

Interesting.