My daughter and hubby have found a house they want to buy and it's going to auction at the end of the month. It's a 3Bed BV with garage, well maintained but with original kitchen and bathroom and no built ins - 40 years old. Same owners for past 40 years who will consider pre auction offers. Daughter and hubby would certainly get their money back if they spent $30-$40 on updating the bathroom, kitchen and adding builtins and resold later - although that's not what they are planning on.
Past recent sales in the area are for a mix of fibro and BV but are mostly 4bed with or without a 2nd bathroom, with or without a 2nd garage or carport, usually with bigger land size by about 100sqm or bigger outside decks/pergolas and all have been modernised. Prices have ranged from $468K - $550K. RE agent said value of this home is 'close' at $439,000. Close to more or close to less - hmmmm............
Current owners want to rent back for 6 months so they don't have to rush to pack up and go and this is OK by my daughter and hubby. They are prepared to rent back to the current owners at $300/week which is about $100 below market rent. This is of course a massive saving to the current owners and the ability to rent back at all is also a sweetener. With talk of the market starting to move and a desirable neighbourhood of good quality homes that aren't sitting on the books for long what sort of figure do you think my daughter and hubby should offer? Is anyone still putting in offers at $20k below at the moment and are these offers being considered and taken?
All things considered, I was thinking -
make an offer in writing of $420K subject to building and pest reports.
Add that they'll rent back for 6 months at $300/week
Ask for an answer within 24 hours to test the waters and hopefully lock them in before others make offers.
All comments appreciated.
Olly
Past recent sales in the area are for a mix of fibro and BV but are mostly 4bed with or without a 2nd bathroom, with or without a 2nd garage or carport, usually with bigger land size by about 100sqm or bigger outside decks/pergolas and all have been modernised. Prices have ranged from $468K - $550K. RE agent said value of this home is 'close' at $439,000. Close to more or close to less - hmmmm............
Current owners want to rent back for 6 months so they don't have to rush to pack up and go and this is OK by my daughter and hubby. They are prepared to rent back to the current owners at $300/week which is about $100 below market rent. This is of course a massive saving to the current owners and the ability to rent back at all is also a sweetener. With talk of the market starting to move and a desirable neighbourhood of good quality homes that aren't sitting on the books for long what sort of figure do you think my daughter and hubby should offer? Is anyone still putting in offers at $20k below at the moment and are these offers being considered and taken?
All things considered, I was thinking -
make an offer in writing of $420K subject to building and pest reports.
Add that they'll rent back for 6 months at $300/week
Ask for an answer within 24 hours to test the waters and hopefully lock them in before others make offers.
All comments appreciated.
Olly