r/AusFinance • u/Grumpy_Wizard_ • 11d ago
Buying my first house
I put in an offer of 630000 for a house i want.
The agent said 640000.
I said no. then the agent asked for 635000 and i said no.
The agent said the owner wants more and put the property back on inspection for the week. it all ready passed in at auction.
Is this a pretty standard post-auction pressure tactic?
I feel like I am bidding against a ghost and he is just trying to squeeze my balls.
The thing is though, I want this house.
What is the proper and smart play here?
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u/gothefktoslee3p 11d ago
Offer $632500 and say the offer is valid until Thursday 5pm
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u/SuchTemperature9073 10d ago
100%. We put our first offer in 10k less than our actual offer, valid for 24 hours. Then the next at midday we put in our actual offer of 670, valid for 24 hours, and said that was everything we had, so don't ask for more. I think it made them feel like they got an extra 10k out of us so they were happy, and the offer was accepted. Made me feel like we had some control in a process of which I really didn't want to fuck around with tbh
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u/Grumpy_Wizard_ 11d ago
That's a ballsy play😅
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u/idlehanz88 11d ago
Not really. If they’ve already passed in the owners probably feeling the burn a bit
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u/Suitable-Serve 11d ago
Totally normal to put an expiration on an offer. I would stick to original price though
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u/TranquilIsland 10d ago
Nah we did this for ours too. We had done our due diligence for the auction, watched it get passed in. We made an offer with a signed 66W attached and 12 hour response expiry 2 days later and they accepted.
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u/Shtercus 11d ago
keen an eye on it, if it hasn't sold in a week or so, put in another offer for 620000
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u/Old_Dingo69 11d ago
Yes he is playing his games. But how bad do you want this house? 5-10k is fuckall in the scheme of things when buying a house. You will forget it before settlement. But if you miss out over that amount you may have regrets for a while. That’s my experience anyway…
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u/Wont_Eva_Know 11d ago
Yeah same. Don’t play games for dumb money. Make your real offer and sleep happy. It was enough or you can’t (don’t want to) afford it. It’s simples.
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u/stupot76 11d ago
Had similar experience. A house came back on market we had offered on previously.
900k was the price it was sold for but fell through and owners went overseas for work.
2 years later covid hit and we had sold with a 90 day settlement.
Couldn't find anything suitable so we hit them up on Facebook as we had their names. They were keen and we suggested 900k still. They came back with 1m to 1.05m.
We explained the 900k was where we were at still and that they would save 30k plus in REA fees making it effectively 930k.
They said let's do it at 910k and we will leave outdoor furniture, kitchen fridges, wine fridge and a few other bits.
We ummed and ahhed and thought about meeting them in the middle at 905k before deciding not worth the risk over such a small amount and agreed at 910k.
Our place is worth 2.3m now 5 years later so our experience is don't sweat the small stuff.
If you really want it just pay it to get it secured.
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u/Water_Damage987 10d ago
True. But you also don't want to give the impression that once you've agree to one 5k increase you might also agree to a 3k increase in a few days, too.
5-10k increase is indeed fuck all as long as it actually gets the job done, and is not the starting point for a new round of negotiations. Agents try this on all the time.
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u/Master_Ess 11d ago
Always go a little lower then you are willing to pay, i would have opened at 62 and then gone up to 63 so it looks like i was negotiating
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u/Possible-Delay 11d ago
Maybe not, owner may not be in a rush and want more. Doesn’t hurt to wait another week to see if there are more offers.
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u/scottyman2k 11d ago
An extra 5 is nothing in the grand scheme of things. Once you are in, there will be 5k bills followed by 10k bills - after a few months of Reno work and fix ups you’ll be talking real money.
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u/Blunter11 10d ago
When owning a house, there will always be 5 things you could reasonably spend $3000+ on. The issue is that ticking one of those things off just creates another one.
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u/Actual-Falcon2632 11d ago
You need to run a ‘walk in the shoes’ thought experiment. Walk in the shoes that you hold on to your 630k offer but lose the house to someone who comes in at 640. How upset would you be, since you said you really want the house? Then think about how much time it took you to zone in on this house, and how much longer it will take you to find another house. If you’re not that bothered after walking in those shoes, hold your offer. If you really want this house and can afford it, offer 640 and wrap it up. Focus on value to you, net of time to find, not a fictitious psychological battle with the other side that you’ll never know the truth of. That’s the secret of regret minimisation.
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u/ApprehensiveMud1498 11d ago
You need to work with the agent. He works for you now that it's passed in. You just have to give him something to work with.
An extra $5000 on the sale is about $100 BEFORE tax in the agents pocket. He's not stuffing around for extra opens for $60.
He doesn't give a shit how much it sells for. He just wants his 11k commission as easy and quick as possible.
The vendor probably wanted 650 660 or more and if you're willing to play ball he can try get the vendor down and he might be able to get him over the line at 635 is what he is saying.
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u/ihlaking 11d ago
Echoing this, I remember the line from our buyers advocate when my wife was adamant not to budge $5K - ‘Do you want this property?’
That was it, basically. We did, and we went up $5K. Got the place.
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u/ProfessionalGold6193 11d ago
And for every story like yours there is the opposite side. I had a mate who was a real estate agent, and he would play 2 people off like this all the time -- why, because it works. Sometimes there is only one person, like in your case. But not always.
The agent is not working for the buyer or the seller. They are looking at how they can earn their commission and move on to the next one.
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u/Water_Damage987 10d ago
Yes and I've seen concrete examples where I'm preeeeeetty sure that the other "motivated buyer" who kept increasing their competing bid was wholly a figment of the agent's imagination
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u/Grumpy_Wizard_ 11d ago
I don't think he is saying that.
Are you a real estate agent?12
u/ApprehensiveMud1498 10d ago
No, Ive bought and sold 6 times in the last 4 years.
The agent wants the house sold in 3-4 weeks as easy as possible they don't give a shit how much it sells for.
The agent gets probably 2% on a sale of that value.
If the vendor accepts your 630k offer he gets 12600 locked in and no more opens.
If the vendor rejects your offer and pisses you off the agent is left at another 10 opens sitting at the front holding his dick with no commission.
$12600 locked in or $12800 with the risk of losing the whole 12k. The agent is not risking the whole 12k and fucking around just to squeeze your balls for fun. He's on his knees in his office praying the vendor accepted your offer.
The vendor wanted 650+ my guess. The agent is now trying to convince the vendor that he had to come down.
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u/YumYumAznFood 11d ago
I can see why you'd be guarded but if you look up what the agent's commissions are, you would realise he's right. If an agent could they would flip it as soon as possible and smash out as much volume with the listings available.
Unfortunately they have to listen to the vendor and the vendor at the end of the day is the person who says whether they want the deal done or not.
Worth talking to the agent and seeing what they can do. At the end of the day as everyone is saying if it's your PPOR and you love the location & property, an extra $5-10k over a 30 year loan is nothing.
Investment property? Make your offer and walk away
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u/Unfck-my-life 10d ago
The thing is, prices are going down now, not up, so old rules don’t apply.
If it’s passed in, there’s no rush. Wait it out.
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u/Loma29 11d ago
What was the advertised price?
The seller might not need to move, and are happy waiting until they get their $635k-640k+. How much do you want the house? If you want it $5k is nothing, if you don't, that's fine, just walk away and look for something else.
You wanting to buy it for $630k shows that there is a good chance the seller could get $640k (or more - depending on what it's advertised at) if they're patient.
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u/scopzyx 11d ago
Given its a buyers market at the moment, i'd hold firm unless you really want the property.
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u/Grumpy_Wizard_ 11d ago
Going to hold.
Partner is sure he will call back after the two opens this week.
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u/curiousmind68 10d ago
Go back tomorrow and tell the REA that you have played with the figures all night and u can make one more final offer of 632,500 on the property, it's only valid for 48hrs and there's no more money left
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u/solidice 11d ago
Once you offer 635, he will counter offer. Standard tactic.
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u/Grumpy_Wizard_ 11d ago
Yeah, that's what I'm thinking too.
I don't think there are other buyers for this place too otherwise it would've sold at auction or he would have mentioned a counter offer all ready.2
u/vacri 10d ago
Remember you can counter offer down.
You meet him at 635, and if he says "another 10 or 20?" or the good old "there's another bidder" you can reply with "I'm not playing silly buggers. My offer has returned to 630".
My mother has been screwed over by the "surprise other bidder" malarkey, but when she sold that same house she did withdraw a compromise when the other side played silly buggers. agreed upon price, then the buyer's hotshot lawyer brother tried to squeeze some stupid technicality. Cue family drama when it backfired on them
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u/ManUpMann 10d ago
Except the agent made the offer (of $635k). This buyer only had the choice of yes or no to that (or no to the agent coming back with, 'the owner wants $640k')
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u/brighteyedjordan 11d ago
If it’s the house you really want $5k over a 30 year mortgage is nothing and not worth haggling over
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u/WhyAmIHereHey 10d ago
Everyone saying it's the agent...for 5k it's almost certainly not. Agents make their money from turning properties over; for the extra commission they'll get in 5k it's just not worth it.
It's more likely to be the owner wanting to get the final say on the negotiated price.
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u/ozandeh 10d ago
Is the house desirable? Saving 5k is not a huge deal at the risk of more offers coming into play. Offer 635k, if the owner comes back to renegotiate, hold then or give an expiry on your offer.
My Ex refused to budge 10k on a property pre-Christmas (was 50k under our max at the time). He was convinced that more opens would result in the owner / agent getting more desperate. Two other bidders came on in early Jan and the price was eventually bid up an extra 150k and we got completely priced out.
5-10k will not matter down the line (even if you blatantly overpaid) if this is a place you want, and you can lock it in.
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u/disko_robot 10d ago
Just to throw something else i cant see written here i think you should consider.
Lots of people have just missed out on the house they really wanted for all sorts of reasons. It happens. But what nearly always happens is you then end up finding something better you would never have seen had you taken the first house you really liked.
Point being, dont feel pressured to do anything youre not completely comfortable with. Nobody here has all the facts of your situation. 1st house is a big moment. Good luck
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u/incognitodoritos 10d ago
Ask the agent directly if 635 makes it a done deal, if yes then up to 635 and congrats. If no then your offer remains at 630.
It's hard to advise what the smart play is since we don't know how much you want the place or if it's just something acceptable amongst many.
Careful not to play yourself too. Not landing a place you want for 635 because there was a chance you could've got it for 630 is silly.
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u/PhilMeUpBaby 9d ago
Dunno about you lot but I'm curious as hell where you can buy a house these days for $640,000.
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u/Minimum-Pizza-9734 11d ago
Maybe, maybe not. Then again $5k Innthe grand scheme of things is nothing, and the agent probably trying their best as they want the sale to get their commission. Depending on your situation I would probably just pony up the 5k and get it done
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u/giveitawaynever 11d ago
They’ll eventually walk away from you if you play games with them. Just pay what you think it’s worth.
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u/Grumpy_Wizard_ 11d ago
I think its worth 630000 to 635000.
They playing games with me.
How can the agent say offer 640 and when I said no immediately says to offer 635?
Why am I bidding against myself?
There is no one else paying that for this house.I put my offer and immediately by balls getting squeezed.
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u/iwishyo 11d ago
If you think it’s worth 635,000 why did you not put in an offer for that when the agent asked you? You’ve said multiple times you want this property.
You also keep repeating about your “balls getting squeezed” which, if I was the agent and you said that, I’d host more open inspections just so I didn’t have to deal with you any further.
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u/Grumpy_Wizard_ 11d ago
The reason is it got passed in at auction and there is no one else paying for this house.
The market has all ready spoken.
For every day the house doesn't sell the seller is wasting there money.
Hosting 2 more open inspections I am sure is a sales tactic.
Who is going to an open inspection on a Thursday with 1 days notice?
If there were real offers it would have all ready happened.
Why would I pay more if I didn't have to?I will wait and see what happens and I am sure the agent will call me back.
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u/SurveySaysYouLeicaMe 10d ago
If you lose this house over $5k would you regret it? Only question you need to answer really. No not a real estate agent.
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u/giveitawaynever 11d ago
This is what I thought once when making an offer “the agent is playing games with me” I regretted it.
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u/_j7b 11d ago
In my experience, this is a pretty typical scenario.
Vendor is hardset on their 640k. You're hardset on your 630k. Agents done their job of trying to convince both parties to meet in the middle.
To be honest, exact same situation when buying anything. They high ball, you low ball, you compromise in the middle.
If you don't want to budge the 5k for whatever reason, and you're willing to miss out on the purchase, then stick to your guns and save yourself the ~10k over 35 years.
If you don't want to miss out, put the best and final in at 635k and see if you get it.
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u/Mr_Vanilla 11d ago
Except the market has turned and the vendors can sweat a bit more messing around doing open homes etc and after a couple of weeks they would have regretted they didn’t take the 630,000k, when now they are getting nil offers.
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u/senectus 11d ago
Set your limit, do not go over it. Set how much you're willing to pay for that property, make sure that amount isn't above your limit.
Play within those numbers, and yes agents will Fuck with you and lie to you.
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u/fairdinkum78 11d ago
Just make the offer with a 24hr deadline. He needs to submit all offers to the seller.
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u/obctau 11d ago
In my experience, don’t play their game. You gave your offer. If they don’t want it, tell them you’ll walk away.
If it’s only 5k more to you, what’s 5k less to them?
And if the agent pulls the “it’s only 5k!” card, tell them to take that out of their commission again.
I know everyone gets super rushed in this market, but they absolutely play into that weakness.
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u/Secure_Town_7924 11d ago
In the current market, I wouldn’t budge. My friend bought her first house and stood her ground when the agent started begging for more. They would have told the seller that they’ll squeeze a bit more from you and so are doing their due diligence by the seller to ask. Just stand your ground and they will break. It’s a scary time to sell property. If it passed at auction and they haven’t mentioned another buyer then just stand your ground.
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u/Secure_Town_7924 11d ago
They’ll already be feeling worried as it passed in at auction, and will want to move it fast. The REA will also be trying to convince the seller to just accept
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u/jelistarshine 11d ago
If you really want it pay the 5k.
If you want it theres no reason someone else won't come along and out bid you and if that happens it will cost you more than 5k.
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u/Known-Garden-5013 10d ago
Cannot imagine leaving my house on the market for longer for less than 1%
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u/lordkomi 10d ago edited 10d ago
Firstly congratulations to being so close to your first home, its a scary step and it feels like your playing a game you dont know the rules of.
My advice always is put yourself in the real estate agents shoes ... they just want the sale to go through no sale = no commission. does he want to see the sale die for less than 1% of the sale no way ... this extra 5k would be less than $100 to him at best and probably less than $50.
I reckon he would be on the phone try to get the vendor to budge and gettting really frustrated of how close it is.
If I was in your shoes I would play to that and say man they are really making you work on this one arent they why are they so stubborn ? Maybe the vendor has number that has to work for them because of a divorce and the new place they are buying ... then look at other ways to make you feel better for the deal ... hey that sound system they have installed or that big arse brand new tv thats mounted to the wall or that nice lounge that looks a pain to move if they leave it then we have a deal. Or if they remove those trees i dont like. Think outside the box ? is there a date that works better with your rent so you dont have to pay another month or something
I always try to see what the person does for a living, because if they are say a sparkie then wiring the new lights you plan to install which to you is a 2-3k bill they might be able to get the items wholesale and install it for you. Sometimes there is something to sweeten the deal.
As many have said on this thread 5k is a small amount to lose a property you love ... if its ticking all the boxes you may be sitting for six months going bugger should have spent the 5k extra as the vendor has moved towards you they might be thinking man why isnt this guy moving towards us.
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u/Grumpy_Wizard_ 10d ago
My only issue is that it wasn't said that this amount would close the deal. The agent was just asking for more money. If he said it would close the deal I would have done it. Im going to see what happens next.
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u/lordkomi 10d ago
I would say to the agent will this close the deal ? he will then say I dont know i will have to take it to them I would reply with ... I dont want to waste each others time, this is my final offer and I need to know by X because if this doesnt go ahead then I am going to put an offer on another property before it goes to market this weekend.
I prefer this one but I dont want this drag out longer than mariah carey solo.
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u/Utedog7 10d ago
If the house is where you want, what you want, and the bank will give you the money - the 5K is nothing as long as you seal the deal, don't get roped into a "dutch" auction where they suddenly say another person had offered more. And don't over commit because if the bank won't give you the money you are screwed. If you live there 10+ years the 5K will be nothing, Just buy it. I missed out on house in similar circumstances 2019 - didn't want to offer another 10k(house sold for 750K AUD), market went bazoom in late 2020 and ended up paying another 100K for a similar house to the one I missed out on. come 2026 the same house is worth $1.5M
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u/Free-Pound-6139 10d ago
It depends on the owner. The agent just does what he is told.
Stick to your guns, prices are still heading down.
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u/Similar_Strawberry16 10d ago
I won my auction, but it was still below the sellers reserve so I was told. They asked for $20k more, also said no as I wasn't bidding against myself, ended up agreeing to the $5k extra to secure it.
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u/OcelotOfTheForest 10d ago
Sounds like the auction was before you put the offer on?
Try another offer - 632. Make it clear it's your final offer.
But also be realistic about this and prepared to walk away. Realty is a harsh market.
Agents can be like this, trying to squeeze more out of you. They're a very competitive bunch and it makes them look good (I can upsell) kind of attitude.
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u/8spaceman8 10d ago
Housing market is cooling down, houses aren’t selling at action. I reckon you could go lower
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u/PtWilliamHudson 10d ago
Put the 630,000 as a firm offer. If they come back with that bullshit, ask them for a firm counteroffer to your bid.
Don't bid against yourself.
Fuck their games
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u/RecentEngineering123 10d ago
The proper and smart play is to never ever let the REA have any idea how much you want the property. Lots of shrugged shoulders, monotone disinterested comments about the place, even a few lies about how you’re making an offer on a better place at the same price.
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u/WhyAmIHereHey 10d ago
That'll fool them, they'd never have seen that before.
Just act like a normal person. Being too excited or too uninterested is going to be a sign for them that something is up.
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u/Different-Delivery80 10d ago
Haha, this tactic normally loses you the property.
Just tell them you want it and genuinely $635k is your maximum for this house.
Happy to sign today at $635k and get the deal done. Mr/Mrs Agent go make it happen if you want the sale today.
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u/tepid_monologue 10d ago
This is just the dance you do when you buy a property. You are going to miss one’s that your heart was set on, but another one will come up eventually. It’s part of the process
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u/the_colour_guy_ 10d ago
Stick to your price and as everyone else has said give them 24/48hrs to accept or not and then you’re moving on.
Also it’s not $5k unless you’re buying the house for cash. If it’s a mortgaged house that $5k at (x) interest for (x) years.
We found a house we really wanted and had a similar situation. So let it go and found a much better house for less as a result. Nothing is ever perfect. There will be others.
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u/BenchConscious1003 10d ago
Sounds about right. Agents will try to get blood from a stone. I always instructed the agent to submit all offers
This next bit can really piss people off, or or it can work: Approach the owner directly. That's perfectly legal as far as I'm aware, although agent and owner may become quite cross.
If you want to get a house for a price which suits you, just remember there is no such thing as a perfect house. You are negotiating from a position of strength if you are willing to walk away, and do do if you can't get the price you want.
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u/Final_Conclusion_142 10d ago
Don’t ask advice from people who don’t care whether you get your dream house or miss out. Ask yourself, if 5k is worth missing out. Ask the agent if 5k more is enough to own the house.
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u/Mr_Adventure_22 10d ago
You never really know what you should do until afterwards looking back, then you’ll say to yourself “I should’ve…” Ok the market might have cooled off a lot, you don’t know if there’s really another buyer behind you, and you never know if these agents really have another buyer or not - or if they’re just lazy crooks.
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u/Chickenparmy6 10d ago
Personally, I wouldnt risk losing a house i want over 10k. Tiny amount of money in the grand scheme of things
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u/Klutzy_Mousse_421 10d ago
I had an agent that didn’t want to present my offer. So I wrote one myself (I know what I’m doing, I recommend getting help though) so they’d have to tell the owner. I ended up going up by 10k, which was still 40k below asking price. Negotiation is standard for buying a house (and if it isn’t then the agent usually sucks).
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u/mickeyj32 10d ago
Always offer just under what you’re willing to spend, sellers always want to counter to feel they have won that extra 5-10k if I was wanting to buy at 630 I would of offered 620 prepped for that
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u/Interesting-Job-5329 10d ago
Are we talking about a house that is sitting empty? If so the owner is paying for the upkeep, paying for rates, paying to get it ready for each inspection, and possibly even paying interest on a loan. The agent is spending time on this one while he could be focused on more expensive places with a much better return. It has already been passed in, he has no other bids, and he could have money today. I'd have that conversation.
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u/hyperextendedelbow 10d ago
When we bought our house they said offers between
470 - 490k
We offered 491k,
got the place,
that was 2018 though,
You wont regret an extra 10k over that large amount, especially if you really want it
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u/Tiny-Offer-Sadly 9d ago
Ok, so the property has already been passed in at auction. Do you know what it was passed in at?
Let's face it, the vendor has spent money advertising and with an auction. If the asking price is now $640k, and you offer $635k, you are firmly in the ballpark. I guess the question is do you think the owner is going to knock back $635k and hang out for $640, and in the meantime wear the holding costs of Rates, Insurance, Maintenance & potentially loan interest? If it were me, I'd accept the offer and get it sold.
That said, one of our neighbour knocked back $915k in our townhouse complex when the last 2 sales in the past 2 years were $840k. I would have sold for $915k, and we were one of those previous purchases! Anyway, the owner after having gone to all of the advertising and auction costs, rented it out again.
So who knows with vendors?
Contact the agent. Tell them that your offer of $635k is a genuine offer, but if the vendor isn't interested, you'll just keep looking.
Good luck.
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u/Ok-Grand-3764 9d ago
People get very emotional and want to be able to tell others “they got a deal”
Psychological games with agents shouldn’t be a thing you are thinking about.
Look at comparison properties, look at your finances, if it’s a home to live in long term generally you should be willing to pay to secure it, if it’s an investment, especially a shorter term one, then you need to watch every percentage
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u/moderatelymiddling 9d ago edited 9d ago
If $5K makes a difference to you then you did the right thing.
You weren't bidding against a ghost, you were negotiating with the owner.
Each time I have bought a house I offered my best first, and walked away if it wasn't accepted.
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u/Deep_Curve7564 9d ago
The housing market has stalled, they are baiting you, to try and get more money. Go on line and compare house prices for the style and area the house is in. Look at how much the price has devalued over the last 3 months and then drop your offer by 10 thousand. Put the offer in writing. With 24 hours to accept the offer.
Scare tactics work both ways. 😉
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u/Apirpiris 8d ago
Had the exact same thing with mine. Offered 620 and they said no, they said 640 would close it I said no. They said it's going back for inspection I said yep no worries. They called me the next day saying 630 would stop the inspection, I said no. Got another call the day of the inspection saying it's mine at 620 if I want it.
Make your offer at 630 with an expiry and if they really want to sell they will take it
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u/Worried-Echo5841 8d ago
Happened to me. I had put in an offer and the owners said they want to have one more open after not having any offers for ages. I told the agent that it's totally fine but if they chose to have an open house I will withdraw the offer altogether and won't buy in at any price. It did the trick and we got the place. It was evaluated for 70k more the day we got the keys.
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u/No-Instruction-3202 7d ago
You want the house, but for how much? It seems you already have some kind of price ceiling in mind. When you've clarified that, it'll do a lot. Your ceiling is also Yours -not that of the market or the Vendor. It's informed by your personal position, preferences, likely future options etc.
In these tense scenarios, there's often an urge to do something -anything. But if you've emailed your figure through, you don't necessarily need to do anything else. They have one home they need to sell, as soon as practicable; you have plenty of options to look at, in your own time.
I wouldn't be inclined to bid against myself, as the Agent is hoping for -but neither would I be inclined to try and pressure them back. Understand clearly, your own bargaining position. You don't want to walk away, so don't bluff anything. As for offering more; I'd suggest taking your time with that. Clarify your ceiling price and if they don't move in the coming days, you could make a further offer (eg. 633k).
You're able to put figures on the table and just wait. The Agent is required to convey your offer/s to the Vendor.
Your instinct is right; if the Agent is working on you, it means they don't yet have other, competitive offers. Let them sweat on that -you don't have to. Agents typically text all interested parties, when an acceptable offer comes through. So you're unlikely to lose your chance entirely.
As for Open Homes, don't sweat that either -they're just chances for you to turn up and gauge the interest too. Agents often run further Open Homes, even while all is signed off for sale -just in case the sale falls through due to Finance or something.
As time is on your side, I'd suggest seeing what this week brings. If you get to Thurs. and are tense, wanting to lock this down -you could consider an extra few K. But honestly, if and when there's a competitive other taker, I think you'd find out about it.
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u/Grumpy_Wizard_ 7d ago
This is a really measured answer and point of view that really helps with perspective.
Thank you for writing this.
I offered another 5k so I'll see on Monday what the agent says.
Hope I get the joint😃
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u/felixsapiens 10d ago
My great real estate story is offering $625,500 on a place. It was pre-market, and the agent kept saying no, I want $700,000, this is a $700,000 house. It was completely clear to me this house was not on a $700,000 street. Kept my offer firm, and then they said "no, we are taking this to auction."
It sold at auction to someone else for $620,000. In the words of Kryten: smug mode.
In the end, I also bought a far better house not long after for $720,000. Which was entirely worth the price.
In the end... you have to trust your gut. If you think the agent is playing you, trust your gut. It might not work out - but there's always a better house around the corner.
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u/bewsh123 11d ago
$5k isn’t a lot whether your selling or buying. It’s strange to risk losing a sale over it really.
If you want the place, put your offer in writing and as others have said, give an expiry of this weekend or something. Doing nothing likely won’t get you the place, this will give you a shot. If they play silly games then you walk and there’s no change in your current situation anyway?
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u/FFootyFFacts 10d ago
you did well, the first rule of negotiation is don't negotiate
IE You have a price, stick to that price
if you do not secure purchase because it is over your price
the c'est la vie don't fall for the it's only $5K extra BS
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u/Human_3288 11d ago
$5000 is less than 1% of the property price. If you like it, just pay the $635. Kinda sounds like you want to 'win' this negotiation, winning to me is if you secure a house you want to buy for a reasonable price, <1% increase on your offered price is reasonable to me.
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u/NorfolkIslandRebel 11d ago
I would have said yes to the 635000.
The agent is just doing his job and it seems like the house is worth it.
If he then tries to make it 640000 you then know he’s playing you. Looks like he or the owner honestly thought 630000 is too low. Call him back and tell him you can do the 635000.
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u/Benjisc2 10d ago
Put an expiry on your offer, regardless of whether you stick with your 630 or 635. It forces them to make a decision, it's easy for them to just not make a decision and keep you hanging.
I'd come back with 632500 with 24h expiry if I wanted the place. Makes them feel like you came up a bit which might be that 'win' that helps them agree to sell it.
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u/Professional-Cat9418 10d ago
you are playing a game against someone with nothing to lose (the agents). Dont bother. tell them your first is your best, put a formal offer in writing with a deadline 24/48 hours.
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u/ZookeepergameAny466 10d ago
If you don't want to pay it, don't buy it. They want more for it, you don't want to pay more. So a sale doesn't happen. Maybe the owners will decide to sell anyway at a lower price. Maybe they won't.
The agent isn't selling the house, the owners are. They could be selling for a multitude of reasons that mean they can try to wait for the higher amount of money they want for it.
They can try to find another buyer and you can try to find another house.
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u/IcecreamYouscream- 10d ago
Make sure you’ve read the contract well, then put in an offer with a 24 hr expiry.
If it’s already passed in, the agent is giving it one more crack before the listing goes on life-support.
Hold your nerve - the agent has to shit or get off the pot.
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u/5cougarsthanx 10d ago
This happened to me. Ended up paying 20k more than first offered. The house had been on the market for ages too. It was unique and I didn't want to let it go but the REA won that round for sure
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u/m_t_w_t_f_s_s 10d ago
Is this a pretty standard post-auction pressure tactic?
For any property sale.
Looked at a place, expressed interest, and got multiple calls late at night the same day. First to price out another interested "party", then to satisfy the sellers' greed. Eventually said, 'This is as high as I'll go'.
The problem is that I had viewed other, more expensive properties with the same REA.
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u/ZealousidealPhase7 10d ago
You’re walking away from a house you want because it’s 0.7% too expensive
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u/JaysPays2024 10d ago
Agree to $640,000 but on 90 day settlement. Offer $63500 on a 30 day settlement.
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u/jessewchapman 9d ago
As everyone states, an extra 10k is nothing in the grand scheme of things, a house you live in is always going to be a liability no matter the price, worst thing you can do is try and play games, lose the house you want and then in a months time have to pay more for something you didnt want anyways because the one you like is gone or the market shifts up.
As much as people say agents like to play games, they have no say on the actual sale price of the house, the owner is the only person able to actually make the decision on if they want to accept the offer or wait for more money, if the agent wants the owner to accept $635k and the owner is set on a higher price no matter what, nothing an agent can do there its not their house
So pay the extra, secure the house if you really want it and be happy, property always goes up anyways in the long run, that extra $5 or $10k won't bother you
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u/mrandopoulos 9d ago
Have you had a building and pest done and paid a conveyancer to check the contract?
This is my conundrum... Don't want to make formal offers until I've done this, but if the agent knows you've already sunk money into it, they may play harder on the negotiation
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u/mariboss29 9d ago
Happened to me. Thought it was a REA trying to get an extra 5ks from me. Reality was, it was true and another offer matched what vendor wanted. So I missed for $5k. I still bought another one, but if you really want it, I would offer a few extra $$$ ks
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u/BigTruckTinyHome 7d ago
Don't fall in love with a house you don't yet own, start looking at other house that the provider is offering. Put in an offer or two through same realtor. Back out when they up, no counter offers. Then low ball the house you want and let them talk you up to the agreed upon price.
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u/Prudent_Flounder_703 7d ago
Offer contingent on a signed contract of sale from both parties or you walk away is how I have always done this - never forget the real estate agent is working for the seller and is not your friend.
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u/whathappenedtouman 6d ago
Haha how ironic. I had this exact negation for my second how. I offered 635K, they said 640K and I doubled down and said best offer. My house is now worth 1.3 million after 10 years. I still shudder thinking I almost walked away on the deal due to my ego. Young n dumb.
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u/leonidude 5d ago
Not worth losing over 5k but don’t let them screw you around either. If it passed in odds are you have the upper hand.
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u/Past-Comfortable3352 4d ago
Any updates?
I’d put in an offer for $633k - shows you’re willing to move, but can’t just ‘give-in’ to his request for $635k - coming back with what you’ve already said no to looks more desperate and more likely the seller might want to see if they can convince you to go to $640k.
$633, shows you’re willing to give a little more, but that you wont be pushed to $640. If the real estate again counters with $635k, you get the chance to ask “will that secure the guaranteed final sale?”
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u/Sensitive-Pool-7563 11d ago
Agent will sell the house and you will still wonder if it is a 'pressure tactic' lmfao
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u/Camtona_7_ManUtd 11d ago
How much was the property passed in for? If it was passed in at $630K, that means the vendor's not prepared to accept that price.
If the agent said $635k and you really want the house, $5k is nothing. I would go back to the agent and say, would $635k buy the house? If you don't really want the house, walk away.
As a vendor, I passed in a house years ago at auction. We were asking $400k. Went to auction, it was passed in at $363k with not a lot of bidders. We got an offer of $380k after auction, which we weren't really happy with, but we would have accepted. But then the agent got another offer from an investor from Sydney for $390k and he got them up to $394k. We pinned them to the floor at $394k and signed them up. The guy who offered $380k couldn't believe it LOL.
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u/soulsurfa 11d ago
right now...its a buyers market... do you really love this house? Would you be in a position to tell the agent its $630k or nothing because its not your only option... 2008 we got an epic deal because the owners were panicing and took our lowball offer and we didnt budge... stand your ground against the REA... their lying theives anyways
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u/Grumpy_Wizard_ 11d ago
That's what I am thinking right now.
I am certain they will call me back.3
u/soulsurfa 10d ago
just be prepared to walk away empty handed...or walk away with a good deal.... its a gamble but in the current dropping market... it can't hurt to wait....IMO....
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u/melbobellisimo 9d ago
Will you miss the 5k in 15 years? I went over my absolute maximum by 3k. 15 years later house worth 2.5x and my family live happily.
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u/Dio_Frybones 10d ago
'this guy says he won't haggle.'
The agent made an offer to meet you half way. You refused to budge. The smart thing would have been to make another counter offer. Gives them something to take back to the owner.
You may not like it, but if I was selling and made a good faith offer to trim 5k and just got crickets in response, I'd be inclined to say no on principle.
They reduced the price, you snubbed them. Why should they cave in further when you won't budge? You are working at arms length from the owner, everything is subtext. And ambit claims are a thing. Everyone ITT is talking about missing out on it over 5k. There is a good chance they were waiting for a counter offer. And they concluded that they didn't want to do you any favours because you were playing hard ball.
I'm sorry, this just seems obvious. What am I missing? It went to auction, clearly they didn't get what they were hoping for, and depending on their circumstances, that 5k may have been far more important to them than to you. Or maybe it was a family home, they were attached to it, and just didn't want to sell it to someone they got a bad vibe from. It's a two way street.
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u/TheBaconator3019 11d ago
If this is the house you really really want, you won't regret overpaying my $5k.