My First Multi - Advice please

[andyp2010]

Hey guys,

I've put plenty of offers in in the past but I've tended to keep away from the multis, however, I really quite want this one property. Purely unemotionally of course, based on the numbers and potential.

So I was planning to pop a sunset clause in for a 24hr decision but the multi form states that 'all offers will be presented at the same time'. Can I still put the sunset clause in and potentially not have to put up with the multi crap? I'm told that there isn't actually an offer in at present, just someone else who's interested.

If I can't, any top tips for multis? All I know is it's a pain in the arse.

Andy

[Momo]

I think if its multi- offers situation, you should know when will they be presenting the offers, normally you should hear the result in an hour or 2 after the offers have been presented, I probably wont bother with sunset clause since you can withdraw your offer in any stage unless you agree not to withdraw your offer within certain period

You cant avoid multi offer or Auction in this market, just put in your best offer and wait and see, if you don't get it just move on to the next, no big deal.

By the way, put your written offer last if the agent you are working with has another buyer submitting their offer so you don't get disadvantaged in anyway.

Hey guys,

I've put plenty of offers in in the past but I've tended to keep away from the multis, however, I really quite want this one property. Purely unemotionally of course, based on the numbers and potential.

So I was planning to pop a sunset clause in for a 24hr decision but the multi form states that 'all offers will be presented at the same time'. Can I still put the sunset clause in and potentially not have to put up with the multi crap? I'm told that there isn't actually an offer in at present, just someone else who's interested.

If I can't, any top tips for multis? All I know is it's a pain in the arse.

Andy

[PTILoveYou]

If there is no other offer then it's just the agent bluffing.

The 24 hour clause is good, maybe even go with a 12 hour one.

At the end, you said you are unemotionally attached to this property, so if the agent does get you to sign a multi offer acknowledgement form, just put in a price that you are willing to accept, but prepare to walk away if the 'other offer' is better than yours.

[andyp2010]

yeah, could be the agent bluffng but by any stretch, its on at a mad low asking price, theres got to be more than just me interested. The multi offer forms come out....
Know it sounds stupid but my similar one, literally around the corner but on the main road and with no garage recently valued at 340. These guys are asking 250 upwards, theres a lot of room for in between. No idea if the other party is a fhb with no clue that just puts 250 down or if its someone who knows its true value.

Cheers momo for the going n last tip, never even crossed my mind that it could be abused otherwise, was about to put one in days ago before you posted that!

[PTILoveYou]

If the valuation is really that high compared to the asking price, then put 251k.

There was a 2 beddy unit in Sandringham Auckland for sale in 2013, asking price was only $299k (needs complete reno), valuation would be $380-420k after reno.

I helped my friend to buy the unit by putting in an offer of 301k. There were 4-5 offers on the first day it was listed, and my friend got the deal. Although this example is in a hot Auckland market.

[andyp2010]

Whats your logic? That everyone just chucks the asking price on? If thats how it works in an even hotter market i might have a chance, ill keep you posted.

[PTILoveYou]

Whats your logic? That everyone just chucks the asking price on? If thats how it works in an even hotter market i might have a chance, ill keep you posted.

Well since the property you are looking at is most likely not in Auckland, then I assume it's a different market.

If its a hot market, the property has just been listed and you know it will be sold for asking price that is below market value, why not pay the asking price?

But if it's in an average market, the property has been on the market for a while, no previous offers, then you can low ball a little, even if there's another offer. Chances are there are more opportunities like this in the same market?

If there aren't many dumb vendors in your market like this, then I don't see the problem paying the asking price when you know you will make money the day the vendor signs the contract.

[Damap]

Fortunately there are "dumb" vendors in every town :-)

[andyp2010]

yeah, there's about 6 people putting offers in. That's from having another check around and listening in on conversations with the rea. Looks like it'll be fun and games.....

Don't think there's much else around like it but it needs a good couple of months work at least. can't remember who said it but that whole, 'the offer of lifetime comes up about once a month' probably applies here. don't want to get carried away.

[PTILoveYou]

yeah, there's about 6 people putting offers in. That's from having another check around and listening in on conversations with the rea. Looks like it'll be fun and games.....

Don't think there's much else around like it but it needs a good couple of months work at least. can't remember who said it but that whole, 'the offer of lifetime comes up about once a month' probably applies here. don't want to get carried away.

Concentrate on the equity you will make in the deal (i trust that your assessment of below market valuation is correct), and not fixated on the amount of discount you will get below the asking price. Again, nothing wrong with paying above the asking price if you still make $$$$.

[Damap]

My general rule is walk away from multis. Someone (nearly) always pays too much. If the agent is a mate they can advise if anybody else is really serious. If so then walk.

[andyp2010]

I'm kind of feeling that Damap. Think I'll put in a reasonably crap offer and if it floats, it floats, if not, nothing lost.

Plus it's a ways out of my knowledge with getting the piles issues and low level building work etc

[BigDreamer]

I am always extremely skeptical about multi-offers outside of Auckland (or any other booming area). Most of the times the agents are bluffing or trying to force a multi-offer scenario to occur.

[Maccachic]

I am always extremely skeptical about multi-offers outside of Auckland (or any other booming area). Most of the times the agents are bluffing or trying to force a multi-offer scenario to occur.

Surely if they get you to sign the multi offer form and there is no second party not hard to prove if a complaint laid? Just drag out putting the offer on paper and see what happens?