When is it OK to pay the price that the seller is asking for? Bryce Holdaway shares his insights.
I had the pleasure of helping Genevieve and Trevor move from the Barossa valley from where they'd been for over 35 years to be much closer to the Adelaide CBD. So with this particular property that Genevieve and Trevor bought, it came on the market they day before we showed them, and within 48 hours there were four people interested in that property so we had a dilemma
We had to weight up the competition and we made the decision to put in the asking price to give us a an edge, but also made sure there was no conditions on finance so that the vendor was very enticed to accept pour particular offer. So in this case it wasn’t just about price, it was also about conditions. And the conditions were really important in structuring an offer.
Pay asking price to beat competition.
What I'm talking about with conditions is basically saying that it’s not subject to the sale of another property, it’s not subject to valuation or finance. That this buyer is serious and can actually move and secure the property and commit to it right now. And so that’s the bird in the hand is better than two in the bush.
Use conditions to structure offer.
So the tip that I can give you, if you’re in a private sale arrangement, is if you can be in a situation where you can buy that property similar to auction conditions and buy that I mean, under the auction hammer, you are unconditional in that property. With private sale it’s not necessarily the case but if you can actually present your offer in a way, and for example, the best one to present is no finance condition, that gives you a very very compelling offer and something that the vendor needs to seriously think about. And could be the difference between you getting the property and missing out in a situation where you’ve got competition
Best of luck!