Sep 20 2010, 06:43 PM
We need help urgently..we're about to put an offer in for a property that has a range of $410-$460K. All interested parties have to put in an offer in tomorrow. The estate agent says he'll put forward the offer by 6pm to the vendor..question do i go on the high side or the low side or in the middle....I was thinking of $410 plus 10%? He reckons that there are about 4ppl interested. We can afford more but we don't want to put too much in case it drives the price too high?? no copy of the rates so i can't tell how much the council values the land..they pay council rate of $1031
greatful for anyone that can help me asap!!!
Sep 20 2010, 07:47 PM
I think you need to figure out your maxprice, and how much you want it, and offer what you think it's worth. $50k is a large range.
Sep 20 2010, 08:01 PM
Really, it comes down to how much you're willing to pay. Have you done your research on the area (try email@example.com for recent sales in the area)? Is the agent likely to be bluffing with regards to the 4 people interested?
What other value can you put on your offer - do you have finance approval already? If so, you don't need that conditional clause which can be far more attractive to a vendor than a $460K offer subject to financial approval.
Re the council valuation - will that change your offer at all? Can you ring the local council in the morning and see if you can ascertain what its value is? Is that really important to you?
Sep 20 2010, 08:10 PM
thanks i'll give the website a try. i have done some reseach today, have also called the council and they can't give me a value of the land...
Sep 20 2010, 08:28 PM
We put in an early offer on our house which would have gone to auction.
We asked the advice of a friend who used to be MD of a big national real estate company. His advice: Offer what you would be willing to go to in auction. He said don't think about what you could possibly maybe get it for, but more what you are happy to pay. Tell them that it is your highest offer so they know not to bother coming back to you with increases, or to go to other people to try to get them to bump it up.
If you are happy doing this, you have nothing to lose. If it goes for more than you can afford, or are willing to spend, then that's that.
Interestingly, this advice was completely the opposite of what a lot of buying guides said, but it worked for us and our offer was accepted that day.
In regards to the biggish price range, I definitely know a year or two ago, the lower advertised price range couldn't be more than 10% below the seller's reserve price. Since then everything is advertised with a range instead of a 'from $xxxxxx' price so I'm not sure how that works.
Sep 20 2010, 08:37 PM
We recently sold our house, we adverstised it with a price range and it was a forthcoming auction with offers offered prior. After one open we had six offers come in. One was really great and expired in 24 hours, so our real estate agent called all the other offers to see if they would offer more otherwise the house would be sold. So even if you don't give your highest offer, they should call you to give you a chance to go higher if you aren't the best offer.
Our buyer range was $80k from low to high end.
We were very lucky as someone offered $1 over the highest end of our buyer range, one offer was the minimum and the other four offers bumped up a little bit and ended up right in the middle. So we were delighted
Sep 20 2010, 08:52 PM
Even if you've got your finances approved I would still use the finance clause as most mortgage lenders will only give preapprovals subject to valuation. If the valuation doesn't come in on target you won't get your finances but would still be contractually bound to buy the house.
From a vendor's point of view I would be much more sympathetic towards offers which were not subject to sale of the buyer's present property. We have been looking to move for a while and have seen quite a few chains breaking down and so properties coming back on the market.
Sep 20 2010, 09:18 PM
thanks ladies....i'll let you know how we go, taken the approved of going in at the middle of the range plus an odd number of 550!!!! wish me luck !!!
if we don't get i'm sure there's a reason and will just try again!!!!
Sep 21 2010, 02:30 PM
Good luck ! If its meant to be yours it will be
Sep 21 2010, 08:01 PM
well didn't get it..it wasn't meant to be...the offer that was accepted was $455K...
we we're going off the mid range offer obviously wasn't enough...it if i had some indication i might've thought about it a bit more!! never mind..
oh well it's not meant to be....back to the drawing board!!
Sep 21 2010, 08:04 PM
Shame, sorry you missed out.
If you are really keen on the place, perhaps you could let the agent know to contact you if the contract falls through ... ?
Sep 22 2010, 07:34 PM
Yeah he said he'll keep us in mind...well now that we know how this range works so we're just going to offer as close to the high range next time..that is if we really want the house!!
i still don't get it though...the fact that you can't make a counter offer...??
Sep 22 2010, 08:01 PM
It depends on the situation, when we bought our current house there was a lot if interest so everyone was asked to put offers in writing by a set tine. The offers were then given to the vendor for them to decide which one they wanted to accept. There were no negotiations in that scenario.
Sep 22 2010, 10:42 PM
With our sale, our agent called all the other offers to tell them we were about to accept an offer that was higher than theirs and asked whether they would like to offer more otherwise they would miss out. Three people bumped up their offers but were still till low. Had we not of had the one person that offered so much more than the rest then it would have gone to one of the mid range people. There is a bit of luck involved too !
We bought a house last year and missed out because the agent didn't call us to see if we would offer more. A week later though the buyers finance was delayed so the vendor accepted our offer.
Oct 24 2010, 09:19 AM
if it's meant to be it'll happen rule is great!! Our offered got accepted for another house..which has a good omen to it cos the street name is the same as my first name!! So we had to have it.. there was only 4 offers and we got it because we agreed to their settlement date...anyway, settlement is on 14th july..it's a 3 bedroom...we need to reno the kitchen and possibly add another room upstairs...we need to move the master bedroom / proper ensuite and walk in robe up stairs...just need to find and work out the cost..ofcourse we're not in a hurry cos we can move and live in the new house..so exited that we didn't go way over our budget!!!! thanks ladies!!
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here