Real Estate Offer

[dazzler]

Hi

Any tips on the best way to make an offer on a property?

I have found the property that I am interested in buying.

It is listed as "mid 300's" and my investigation into property prices in the area seem to indicate this is reasonable. (thanks G )

I would like to make an offer. There appears to be some interest in the property (lots of lookers) but no offers yet.

I would be happy to pay $350,000 for it but dont want a protracted bidding saga.

There are a few things in my favour as a buyer. The money is sorted, I dont have to sell my property and there is no rush to move in.

My thought is to contact the agent and advise that we are interested in buying the property. There is another property that we were planning on bidding on in ten days (true story) that is very similar. Because of this I am not in a position to debate the price and therefore want a straight answer.

So I thought I would ask What is the lowest price the vendor will accept given the favourable conditions I am offering re settlement.

Would it be reasonable to re-affirm that we would consider the price as thier final offer and if it is not reasonable that we will move on to the other property and would not consider this one again?

And can the price be gazumped in Tasmania (Hi shedhand )

Any suggestions appreciated.

cheers

dazzler

[Groggy]

(puts fingers in mouth and whistles)

Phfweeeeet! Gumby! One in your specialty area, aisle 5!

(wipes fingers on jeans and saunters away)

[Gumby]

We've had some talks already (see 'thanks G' - above)

Now, let's see. Listed at mid 300's probably means more but then again, who knows. Sometimes not even the agent.

Put in your offer if you are interested. Do it in writing with a deposit to show you are genuine.

Make a decision after that, depending on whether it's accepted or not. If not, ask what the counter offer is. Then decide again. You either pay it if it's reasonable in your opinion, or wait for the auction oif the other one and take your chances.

Property is sold when a willing buyer meets the price of a willing seller. That's it, in a nutshell.

I don't know about Tasmanian property law but in Victoria, once it's signed, that's it.
In NSW that hasn't been the case - which is stupid. I think they were moving to fix that problem but not sure if they have.

Just one thing. Don't try to 'steal it' price wise. You'll more than likely miss out to someone else. If it's the home you want, a few grand here or there is irrelevant in the long run.

[dazzler]

Thanks.

That makes sense. Just want to pay a fair price and leave everyone happy

[Gumby]

That makes sense.

First time for everything

[Daddles]

Put in what you think is a fair offer. If the agent is any good, and they want more, he'll talk to you. You only shoot yourself in the foot if you try to be greedy.

Richard

[Howdya do that]

I have sent you a PM

[Honorary Bloke]

Just a Seppo estate agent lurking around to see how this turns out. Hope to learn about similarities and differences.

Gumby's advice sounds like much the same thing I would tell a client, which in itself is quite alarming.

[Gumby]

Gumby's advice sounds like much the same thing I would tell a client, which in itself is quite alarming.

I think it shows you've been around here too long. I'd be very worried if I were you.

[rrich]

Dazzler,
I see where you are coming from. The agent should be able to provide you with some comps in the neighborhood. (Comperable sales, with emphasis on sales) Drive by and look at these comps. Compare them to the property that you're interested in. Do things like count the windows. That will give you a feeling for the size of the comp compared to the one that your are considering. Look for things that obviously need reparing. You'll be able to determine if the comp was sold fairly or under duress.

As has been said, a few grand is nothing compared to getting the property that you want. Be very up front with your planned financing. Here we have things like "Seller's Points" or a fancy way of saying that the seller has to bribe the lender to issue the loan. (Usually 2% to 6% of the buyers loan.) If your financing does not require these points, the seller should be willing to drop the price a bit.

Also try to remove the agent commission from the closing. If you pay the full agent's commission outside of closing several things happen. The commission is lower based on a lower sales price. The sales price is lower and future property taxes based on the sales price are lower. If you are moving because of a job change, in the US, commissions are deductable from income taxes as a moving cost which causes the generation of income. It takes a bit of cash but it is possible here in the US. I don't really know about OZ.

Good luck in your new home.

[Gumby]

Also try to remove the agent commission from the closing. If you pay the full agent's commission outside of closing several things happen. The commission is lower based on a lower sales price. The sales price is lower and future property taxes based on the sales price are lower.

.

Not relevant in Oz.

[Honorary Bloke]

Also try to remove the agent commission from the closing. .

Quite relevant in South Carolina. And illegal! That knock you hear on your door is not the local Welcome Wagon.

[coastie]

Have a look at RP DATA,they do charge a small fee for comparison sales,however.

[dazzler]

Quite relevant in South Carolina. And illegal! That knock you hear on your door is not the local Welcome Wagon.

Down your way would it be called the "the black maria"?

[rrich]

Quite relevant in South Carolina. And illegal! That knock you hear on your door is not the local Welcome Wagon.

Actually it is quite legal. Consider a house selling for $100K. An offer is made as $94K and buyer pays realator commissions. In closing the selling price is $94K and the commission shows up on the buyers side of the closing statement. The commission appears as a buyer expense. In the US, if the buyer is moving as the result of job change, the commission is directly deductable against income on form 3903. As a side benefit, the sale gets recorded at $94K in the county records. This reduces the property taxes slightly also.

BTW - It was an IRS auditor who explained to me how to do this.