Buying Properties with Price Ranges.

[Outback Nomad]

Hi all.

I am looking at purchasing an IP in the coming week an the property I have my eye on is on the market for 380K - 410K. I have bought several properties in the past with regular pricing and was able to negotiate a good deal on all the occasions. I was wondering if anyone has had experience in buying properties listed in this fashion? or if there are any unspoken rules so to speak (ie. first offer must be in the range.

I believe that the price is on the money but it shouldn't stop me from trying to grab a bargain. Should it???

Thanks for any help.

Cheers

 

[Propertunity]

I was wondering if anyone has had experience in buying properties listed in this fashion?

Yeah, just a bit

This topic has been discussed on many threads here in the SS forum.
Do a google seach on: site:somersoft.com "price range"

Here's one or two to start you off:
http://www.somersoft.com/forums/showthread.php?t=42302
http://www.somersoft.com/forums/showthread.php?t=49598

 

[DaveM]

Offer whatever you like for it. If an agent plays silly buggers with price ranges, the offer should be well under the lowest number in the range

 

[NedKelly]

I don't know about WA but in Queensland the agent should pass all offers onto the seller regardless of the price range stated. I'm with DaveMSydney: pitch your offer at a VERY low price.

 

[Outback Nomad]

Thanks made an offer this arvo of 365K and it was rejected. Agent says they want closer to the 400K which for the house is about on the money. But I am thinking I can get it for a fair chunk under.

Will see how things go in the morning. Fingers crossed...

 

[Jamie M]

The range shouldn't come into play. You just need to work out how much "you" are willing to pay for that particular property and base your negotiations around that.

Cheers

Jamie

 

[ali]

I just bought a property in an area where real estate agents often use price ranges. They say it is because buyers will look in a certain price range but can be "talked up" to a higher price if they find the right property. I found it annoying but motivating in that I spent more time working out what the property was really worth based on previous sales, rent, etc, rather than being distracting by a set listing price. As others have said, go in really low, then work your way up to what you think it is worth, but no further (unless you really want it!). Hope this helps.
Cheers Ali

 

[travelbug]

As others have said you need to research and work out what it's worth. Not what they are asking for (range or single price).

Agents get it wrong sometimes. That's why some properties sit for months and others are snapped up the minute they are listed.
I've seen properties listed lower than they should be. Sometimes out of area agents or lazy ones. The quick grab them.

 

[Jamie M]

Agents get it wrong sometimes. That's why some properties sit for months and others are snapped up the minute they are listed.

Yep, totally agree. Or they get stubborn vendors who won't move on their price.

Cheers

Jamie

 

[Outback Nomad]

Thanks for all the advice guys it is greatly appreciated. I didn't end up getting the house I had my eye on. Sold the same day I put my offer in to someone who thought it was worth more though.

But not to worry two days later found an absolute gem around the corner and snapped it up. All good. 4 x 2 x 2 $420K will rent for $480 PW. So am pretty happy with that.