Browse Forums Real Estate Re: Making an offer before auction advice 22Jun 23, 2010 12:54 pm thankyou all for your replies we put in the offer of $430K, the agent called yest and pretty much told us this is the reserve and that the owner is sure they can get more at auction, houses have been selling in this area 450-460K was this his hint we need to offer more? he didnt say that but he also didnt say they are adament to go to auction. its in 3 weeks, but we are getting the building inspectino tomorre (no pest inspection) he said they had 2 other offers in the lower 4's , so ours was the highest so if all is good with the inspection tomorrow we are thinking to offer more, say $445K is it silly to make such a jump? we dont really want to muck around as im positive will sell for this at auction im going on recent sales, we want to avoid auction so how much should we offer? our max price is 460K, i was thinking $450K Re: Making an offer before auction advice 23Jun 23, 2010 7:25 pm Make your best offer. Tell the agent it is your best offer. Don't muck around with tiny increments. I know this, I deal with this on a daily basis. Purchasers often make the mistake of stuffing around with tiny (well, not tiny, but small) increases in their offers, and by the time they have made 3 smaller offers and the vendors have said no to all of them, 10 other people have had a look through the house, 2 of them have decided to make offers and you have gone from being the only one dealing with the agent to having competition. If you are happy paying $450 and you think it is a fair and reasonable price don't stuff around trying to out play the vendor and agent. Is trying to save yourself $5000 here and there worth missing out on the house for? Seriously, this happens all the time. I don't want you to miss out on this house if you love it heaps!! Re: Making an offer before auction advice 24Jun 23, 2010 7:35 pm Offer $450k if you feel the house is worth that and you will be happy paying that amount. Don't tell the agent it is all you can afford. Use these words instead "this is my best and final offer". Good luck and let us know how you go Blog: http://bluemistkids.blogspot.com "Never be afraid to try something new. Remember, amateurs built the ark, and professionals built the Titanic." Re: Making an offer before auction advice 26Jun 23, 2010 9:02 pm Personally, I wouldn't. You said you have the idea that your first offer (the highest?) is around the reserve. You offer 445 and that is going to be the new reserve, right? I'm just playing devil's advocate here, but you have no way of knowing for sure if there were any other offers, or if there will be any other genuine bidders at the auction. One thing you never, ever do is tell an agent what your top price is and you are pretty much doing that. If I were you I would not make another offer, tell the agent you have reconsidered (as a result of a negative building inspection?) and send someone else you trust to bid at the auction on your behalf. JMO - but everyone has a different strategy. Re: Making an offer before auction advice 27Jun 23, 2010 9:08 pm IF you really want this home offer $460,000 subject to seller signing contract within 48 hours. Explain you have this and another house you are keen on. IF you are "take it or leave it" then maybe offer less, as long as you wont be ** off when somebody else buys it for $459,500 Re: Making an offer before auction advice 28Jun 25, 2010 12:44 pm thanks guys well we got the report back and its not as i expected they graded it below average for a house of its age they listed minor things, not too worried about these and to get a plumber and an electrician i think they all do this, but they found some structual damage to the right side of house he said it needs underpining, my hubby is calling him later to fin out more, when i spoke to the guy yest he said the stumps were fine, but the foundations were broken and needed underpining, i really wanted this hosue and am quite disappointed, any advice? Re: Making an offer before auction advice 29Jun 25, 2010 4:01 pm You have two choices, walk away and look for something else or use your report as a negotiation tool, factoring the cost of repairs to your offer. Good luck Re: Making an offer before auction advice 30Jun 25, 2010 5:45 pm The problem is that you have this information and you can use it to assess a fair price for the house factoring in potential repairs, however anyone else making an offer may not have had a building inspection done and may not lower their offer as a result. Re: Making an offer before auction advice 31Jun 25, 2010 6:28 pm mishb The problem is that you have this information and you can use it to assess a fair price for the house factoring in potential repairs, however anyone else making an offer may not have had a building inspection done and may not lower their offer as a result. EVERYONE will have the information if you let them know at auction. Happens all the time. Just make a point of talking about the structural defects as you walk around and are near other people. Say to your husband "but I'm REALLY worried about how much it will cost to do the underpinning. Lucky we got the building report. You know so and so paid $10,000 for theirs." etc. Factor the cost into your purchase price. Good luck. Re: Making an offer before auction advice 32Jun 26, 2010 6:09 pm travelbug mishb The problem is that you have this information and you can use it to assess a fair price for the house factoring in potential repairs, however anyone else making an offer may not have had a building inspection done and may not lower their offer as a result. EVERYONE will have the information if you let them know at auction. Happens all the time. Just make a point of talking about the structural defects as you walk around and are near other people. Say to your husband "but I'm REALLY worried about how much it will cost to do the underpinning. Lucky we got the building report. You know so and so paid $10,000 for theirs." etc. Factor the cost into your purchase price. Good luck. If you were all set to bid at an auction, would you really be swayed by these sorts of comments made by a competing bidder? I didn't realise it was that easy to scare people off from bidding against you. Re: Making an offer before auction advice 33Sep 16, 2010 5:22 pm I am SO impatient to know what happens with this auction... We're sort of waiting to see what happens at an auction for a place WE love, and I'm really hoping to read a success story beforehand...*fingers crossed for the original poster* As far as being able to scare off other potential bidders at auctions with talk of stumps and underpinning and structural defects, well...I guess maybe...80% of people at auctions have no interest in bidding...and of the 20% that do, maybe 10-15% of them are interested but not IN LOVE with the property, so such talk would possibly drive them away. Any seed of uncertainty could be enough, if they're not over 95% committed already, you know? For them, there will be other properties that they can get the inspection done on in time, and might be in love with. They won't bid. It's the other 10-5% of people that will be more difficult to sway... How the hell did I become a senior member!? I know nothing! Was the offer also on their website? If so, you could check the Wayback Machine. 1 1052 Any good architect or building designer will be able to tailor design a home to suit not just your block width but also the site aspect, orientation and your lifestyle. … 1 245 Versaloc is a mortarless besser block system that still needs a properly engineered footing. If you just do a 400x200 footing it will fail in time. At 17m long you need it… 1 19162 |