Offer to purchase question

RonSwanson

RonSwanson

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May 21, 2018
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Solitude said:
Going to sign an offer to purchase this evening. I feel so stressed I feel out of breath the whole time.
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Keep calm and
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C

Chris_SA

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Mike Hoxbig said:
Also the least stressful IMO. The admin nightmare that follows is a real PITA...
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That was actually easiest for me. Investec pre approved my loan, didn't even have to go in for everything, courier from investec came to me for all signatures.

Moving day is another story.
 
A

aqua02

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Nov 22, 2009
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204
Hi guys
So I have browsed through this brilliant thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.
 
TechGirl04

TechGirl04

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Apr 4, 2018
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340
aqua02 said:
Hi guys
So I have browsed through this brilliant thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.
Click to expand...

It depends on alot of things. What is the purchase price?
 
ToxicBunny

ToxicBunny

Oi! Leave me out of this...
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aqua02 said:
Hi guys
So I have browsed through this brilliant thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.
Click to expand...
Basically do your homework on the area using sites like property24 and the municipal valuation roll etc and figure out what recent selling prices for similar properties are like.... Do not get stuck on the sellers asking piece, it's largely irrelevant, it's what the property is worth to you and the market as a whole. If your research shows the seller has overpriced by 25% then go in below the real market valuation.

Do not under any circumstances care about the seller or the agents feelings.. This is the biggest decision of your life and you must be sure it's right for you and at the right price for you.
 
Speedster

Speedster

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21,684
aqua02 said:
Hi guys
So I have browsed through this brilliant thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.
Click to expand...
Make an offer you're comfortable with and have it expire at Friday noon. Seller can always come back with a counter.
 
Mike Hoxbig

Mike Hoxbig

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Messages
43,328
aqua02 said:
Hi guys
So I have browsed through this brilliant thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.
Click to expand...
You need to have two numbers in mind.

A reasonable price that you want you pay (say 10-15% less), and a cutoff price that you are not willing to cross. Start off with the price that you want to pay and say that it's negotiatable.

A desperate enough seller will concede. It's a buyer's market, use that to your advantage. If he gets a better offer then so be it. There's no loss to you other than an emotional one.

The place we're buying was on the market for R3.1m. I put in an offer of R2.65m. The agent came back and asked if we could offer closer to asking price - that's when you have your guy. A seller that isn't desperate wouldn't negotiate, they would outright reject it. Told them fine but I can't go any higher than R2.8m, which was accepted.

Make sure that your offer expires within a few days. You don't want him playing your offer against another...
 
A

aqua02

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Joined
Nov 22, 2009
Messages
204
ToxicBunny said:
Basically do your homework on the area using sites like property24 and the municipal valuation roll etc and figure out what recent selling prices for similar properties are like.... Do not get stuck on the sellers asking piece, it's largely irrelevant, it's what the property is worth to you and the market as a whole. If your research shows the seller has overpriced by 25% then go in below the real market valuation.

Do not under any circumstances care about the seller or the agents feelings.. This is the biggest decision of your life and you must be sure it's right for you and at the right price for you.
Click to expand...
Thanks, I have done this and surprisingly enough, the listed price is around selling prices in the area. I believe he didn’t overprice it as he’s a bit desperate to sell.
 
A

aqua02

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Joined
Nov 22, 2009
Messages
204
Mike Hoxbig said:
You need to have two numbers in mind.

A reasonable price that you want you pay (say 10-15% less), and a cutoff price that you are not willing to cross. Start off with the price that you want to pay and say that it's negotiatable.

A desperate enough seller will concede. It's a buyer's market, use that to your advantage. If he gets a better offer then so be it. There's no loss to you other than an emotional one.

The place we're buying was on the market for R3.1m. I put in an offer of R2.65m. The agent came back and asked if we could offer closer to asking price - that's when you have your guy. A seller that isn't desperate wouldn't negotiate, they would outright reject it. Told them fine but I can't go any higher than R2.8m, which was accepted.

Make sure that your offer expires within a few days. You don't want him playing your offer against another...
Click to expand...
I will keep this in mind, thank you. My mind racing thinking that I’d be losing out, I just need to emotionally detach from the process.
 
N

N@t3

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Aug 26, 2016
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Finally ready to lodge from the bond attorneys side, but the other side still awaiting rates clearance certificate.
 
Mike Hoxbig

Mike Hoxbig

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Messages
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aqua02 said:
The house is listed at R1295000
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aqua02 said:
Thanks, I have done this and surprisingly enough, the listed price is around selling prices in the area. I believe he didn’t overprice it as he’s a bit desperate to sell.
Click to expand...
Within that price range, your room to negotiate is a bit less. Once the seller factors in the agent commission, he may bit left with less than he paid if the offer is too low.

If you can, pay for a property report for the area to get an idea of what the recently sold prices are...
 
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