在澳大利亚 Hi everyone, After months of searching for my first IP I believe finally have the corage to put in my first offer. I would love some feedback Property: Duplex Asking price: $239,000 I believe it is worth $225,000 to $230,000 My Offer: $218,0 I am in Melbourne. Would like to buy properties interstate. How difficult is that to manage these properties. Any advise. 评论 Do you mean manage to find them or manage as in property manager? 评论 Manage to find a good property manager 评
Thought the following might be useful perhaps for those negotiating on deceased estates. I was assisting friends buy their first IP and although nervous at doing it, insisted on doing it themselves (which I respect) while I was available for coaching purposes on the other end of a telephone line.
The property was a deceased estate, so we were dealing through the RE Agent who was in turn calling the out of town Executor of the will. The property had been advertised for $380K, then $350K then as the 3 month agency agreement had almost run out at $339K.
My buying friends suggested to me that they would be happy to pay this price if they had to, as it seemed now to be good value and "should they make an offer of $335K?" Knowing the area quite well myself, I thought the asking price was fair but thought we might negotiate a little harder since it was still in a 'slightly falling' market according to recent stats.
We started at $290K which I did not think would be accepted - it wasn't. We asked the Agent if we could agree on a price eventually, could we sign a contract today or were there others that needed to be involved. The Agent indicated that the Executor could decide but out of courtesy would ask the beneficiaries their view before signing - at least we knew where we stood.
Then we made a series of offers in smaller and smaller increments to indicate on the one hand our interest but on the other our limit to offer their asking price. This frustrated the Agent for a number of reasons:
1. He knew we were genuine buyers
2. He knew the sellers were getting anxious for a sale
3. His Agency agreement was about to expire (and we think unlikely to be renewed due to no sale having taken place)
4. This was taking place on his official day off (and he was calling out of town a lot to talk to the vendors).....
in any event he let slip during the 'toing & froing' that our offer was not near the valuation that the vendor had obtained....BINGO!!
The penny dropped, of course the Executor had to get a fair market valuation and not sell for below it, or risk having a claim made against them by the beneficiaries.
The rest as they say is history. We asked for a copy of the valuation. The Agent said he could not legally provide it to us, as it was done for the vendor/s. We said - no problem, just get the vendors to fax it directly to us. We made a bold statement that "We would pay whatever the valuation came in at" - no other haggling required.
He coughed and spluttered and ummed and arhhhhed but we had him cornered. hehe.
My friends ended up with the property for $323K - $16K less than they were prepared to pay - for about 45 mins of adrenalin pumped phone calls between the Agent and me. I love it!!!
I also learned a thing myself - having purchased a number of properties (but never a deceased estate before).
Nice work AimJoy ... hope your friends bought you a bottle of something nice for that effort Sounds like a good negotiation with all the right ingredients to exploit ...
deceased estate = mortagee repossession ?
An extremely interesting strategy - and well done for negotiating/ achieving what was a win-win outcome.
Do you think the same principle - that the executor cannot sell below market valuation without risking a claim from the beneficiaries - would apply to a mortgagee repossession (albeit replace the "beneficiary" with "mortgagee").
I would like to presume so.
I think a genuine 'mortgagee repossession' will only ever be concerned with paying the outstanding loan and escaping without being out of pocket. I reckon I've seen a few that say they are mortgagee repossessions to generate the interest on auction day At the peak of the boom, some of those public trustee, Main Roads surplus auctions were holding out for some pretty unbelievable reserves. But being peak-of-boom, they were achieving them too
Do you think the same principle - that the executor cannot sell below market valuation without risking a claim from the beneficiaries - would apply to a mortgagee repossession (albeit replace the "beneficiary" with "mortgagee").Click to expand...Tony, my experience has been that in most cases a mortgagee sale will be done by auction as they can verify that they have achieved market value on the day. (If you consider market value to be what someone is prepared to pay for it.) It usually depends on the state of the market how negotiable they are if reserve is not met. A deceased estate via Public Trustee is usually similar.
I have bought one deceased estate, 3 mortgagee sales & one dept housing surplus in this manner, all for considerably less than market value (only because there was little interest in these homes other than myself). Two of those didn't meet reserve, however negotiations were very quick & I didn't go up much in price to secure them. This is because the R/E reassured the vendor that there was no-one else interested in them. These all occured in a flat market.
I have also witnessed many mortgagee sales etc in a booming market & if reserve is not met they (in my area at least) go to private treaty & don't negotiate much at all. I have seen many a purchaser pay top dollar for a less than average property in this manner.