Making an offer on a property is a real art. How do you know if you are too high or too low? The first thing is to do your research to find out what the property is really worth.
Once you have determined the worth of the property, what then? In private treaty sales you first have to look at the vendor’s advertised price. You know that this is what they hope to achieve if everything works out for the best.
So now you have to decide on a first-offer price. Is there a rule of thumb on first offers? No. You can offer a ten-percent-discounted offer or even less, but always be leery of offending the buyer or their selling agent. Offending them is not a good idea, because they can walk away from the deal or get hardened in their stance.
So only offer a substantially lower offer if you really believe the property is worth substantially less.
Generally, it’s a good idea not to put your best offer first. There might be exceptions to even this rule if you’re trying to achieve a knock-out blow early on your competition, but, in general, if your offer is reasonable, you may get knocked back, but you can still make a counter offer.
The disadvantage of putting your best offer first is that you can feed the vendor’s expectations which, in turn, might encourage them to hold out for a better offer.
If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Browns Plains 3800 4000, Marsden 3200 4495, Springwood 3808 5544 or Waterford 3299 7733.
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