Home OTP - expire ?

Dolby

Dolby

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I said to the agent I wanted a value out for me home - she said perfect and she'll do it.

Yesterday at 18:00 she phones to say she's got an offer that expires the following day (today) and she needs to chat to me about it. I asked if she met and she said she'd let me know everything face to face rather ... so we're meeting later.

Thinking about it, if she didn't want to tell me means there is a good chance of it being under what I want. And due to the expiry she gave me, it means when I meet her it has to be a yes or no there and then ie a tactic to give me a lower price and her, a larger commission.

What I what to find out is on these OTPs, do you specify an expiry date?
Is it always 7 days, or possible for a person to put 1 day?
 
You can specify the expiry in the OTP so it is possible for it to be 1 day.

A lower price equals a lower commission for her as it's percentage driven, however it also means less work if she can get you to take this offer. It's entirely up to you on how you feel about the offer though, so do consider it, just remember that she's only human and wants to get the sale done to avoid dragging it out to only earn herself a few hundred more.
 
We decided on a net value out for me - everything above that, she keeps as her commission.

So in this case, actually better off to get lower offers

EDIT : The net given was entirely achievable. According to reports, my average property price is R1.890m and due to work needed, I've asked to net R1.600m - almost R300k off the price.
 
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Just bought a house myself. I insisted on a 1 day expiry too. Agent originally said 3 but agreed on 1.

I don't want to be sitting around wondering if I have a house or not;). .....

But you could also negotiate her commission to account for lower offer. Although not with the agreement you have where it's x for you and she keeps the rest.
 
If she didn't want to tell you on the phone, she must be preparing for a long explanation. Don't be pressured to accepting something you don't want - simple. If they really want it then what's another couple of days?
 
My thoughts I well.

She started last week (before this 1 day offer) by telling me how many people had come in and how they all complained about walls, roof, garden, paving etc... So I'm half expecting me to be so lucky to have recieved this offer even if it is lower

Been on the market 3 weeks which is very short in this day and age
 
Thanks.

Nice selling tactic from her though.
 
Yeah - I'm one of those who switch off when people get that kind of pushy. Yes there are problems, but that's what voetstoets sales are about... warts and all.
 
Honestly, I'd phone her and say, tell me what the value of the offer is, if it doesn't meet your required net then she doesn't have to come and meet you later as you won't accept it.
 
There should be a cap on commission in your sales agreement with the agent. EG: 5% up to a maximum of X. Why I say this, is that I have seen it before where a home owner sells their property short and thereby says "I want X out net and the balance is yours" however the real sale ends in a much higher sales price leaving the agent with more " profit" than the home owner. Rather put max and min levels in your agreement.
 
Dolby said:
We decided on a net value out for me - everything above that, she keeps as her commission.

So in this case, actually better off to get lower offers

EDIT : The net given was entirely achievable. According to reports, my average property price is R1.890m and due to work needed, I've asked to net R1.600m - almost R300k off the price.
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That's a big commission you are giving away. What area if I may ask? And where did you get the average from?
 
F1 Fan said:
That's a big commission you are giving away. What area if I may ask? And where did you get the average from?
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I got a PropIQ and LightScribe report and compared both pricing. They list the average selling (transfer) price in the area at R1,750m and my particular property at R1,850m-R1,890m (larger stand).

From that price, I deducted what work needed be done, as the house has been rented for 8 years and needs paint, paving and numerous items to be repaid. An estimate of the work would be around R150,000, which I deducted from the average and brought me to roughly R1.700m.

Standard commission on that be close on R80,000 - so I'd net R1.620m in any case.
 
biometrics said:
A 24-48 hour expiry on an OTP is normal.
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I heard that now from someone else here ; she can't expert a decision by the time she leaves. By default though, that would be a 'no'

ToxicBunny said:
Honestly, I'd phone her and say, tell me what the value of the offer is, if it doesn't meet your required net then she doesn't have to come and meet you later as you won't accept it.
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I'll meet her this time and see what she says. But assuming she hasn't provided what I want, I'll tell her not interested
 
Dolby said:
I got a PropIQ and LightScribe report and compared both pricing. They list the average selling (transfer) price in the area at R1,750m and my particular property at R1,850m-R1,890m (larger stand).

From that price, I deducted what work needed be done, as the house has been rented for 8 years and needs paint, paving and numerous items to be repaid. An estimate of the work would be around R150,000, which I deducted from the average and brought me to roughly R1.700m.

Standard commission on that be close on R80,000 - so I'd net R1.620m in any case.
Click to expand...

Asking cause the demand in a particular area impacts the price as well which isn't always reflected in the lightscribe reports.

Also looking for a place at the moment that's why I ask area.
 
Dolby said:
I heard that now from someone else here ; she can't expert a decision by the time she leaves. By default though, that would be a 'no'



I'll meet her this time and see what she says. But assuming she hasn't provided what I want, I'll tell her not interested
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You're much more accomodating than I am in that respect.

Phone me and tell me I have an offer, my first question would be, "does it meet the minimum net I asked for?" If the answer is no, it would be a simple follow on question, will the seller accept a countersigned off to meet my minimum net. If the answer is no to the follow on question, then I would tell her not to bother meeting and that I will just reject the offer outright.
 
ToxicBunny said:
You're much more accomodating than I am in that respect.

Phone me and tell me I have an offer, my first question would be, "does it meet the minimum net I asked for?" If the answer is no, it would be a simple follow on question, will the seller accept a countersigned off to meet my minimum net. If the answer is no to the follow on question, then I would tell her not to bother meeting and that I will just reject the offer outright.
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Same here...don't have much time for estate agents...I also don't like a 24 hour deadline. Sometimes you are busy with other things and can't fit in the time to review OTP's. I've rejected an OTP before because they could not afford me enough time to properly review.
 
So go through - R1.580m from an offer of R1.690m.

Eventually they settled on R1.590m and I reluctantly accepted. I had older family with me convincing me to just take and go ; only R10,000 etc etc - so I just signed.

Not happy with Rawson though and in hindsight, I'd go elsewhere
 
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