End-of-year bargain deals

Lotana

Lotana

I wonder if anyone managed to strike a good deal in the last week of December. It would be great to hear from people who had their ridiculously low offers accepted on Xmas eve or NYE. Talking more generally, does anyone deploy an end-of-year strategy to buy well?

Cheers,
Lotana
-------------

"Cheese appreciates, holes depreciate" thought a little mouse
 
Hi Lotana,

Can't say I did unfortunately, however we did see/know a couple who did grab a Xmas bargain. I don't think there was much strategy, they just knew the vendors were eager to sell.

On a similar theory, has anyone heard of 'buying in Winter'. Not totally sure but I assume that the 'herd mentallity', that being the opposite to the every buyer out in spring may have something to do with a reduction in competitive players within the market. Not sure what the stats suggest though.
Anyone?

Marco.
 
I missed out on a nice little property last year which was auctioned on the last w/e before Christmas. I wish I'd been better prepared for that!

It was Queanbeyan, granted, so principles probably would not apply elsewhere. But it did sell substantially below the agent's
appraisal- and, at the price it did sell, it would have been nicely cashflow positive. And a very nice little house to boot- heritage listed with all the associated problems, but with real character.
 
Re Buying in Winter

We've found that buying in Winter has been the worst time over the last 3 -4 years in Melbourne (Inner West). There are a lot less properties on the market and the prices get pushed up and up until after the Grand Final when everyone decides to put their house on the market, creating more supply to ease the demand. I think vendors tend to think more seasonally than buyers, at least around here. We have found over the last few years that prices are cheaper (relatively) between October & April. I think this is largely because we have been experiencing a boom market and prices have flattened out in this time and risen more sharply between May - September. However, all this may change with a change in the market, although every year we say it can't happen again and it does! Just my observations.
Sue
 
We got one in the ACT(Weston)
A property was auctioned a week before Christmas with no bids. It was put back on the market that weekend. Lots of people were buzzing around at the inspection but no one offered. It was listed at 30K below other comparable properties in the area.
We saw its value and potential and put in a full price offer then exchanged contracts on the following Monday.

Purchase price 220K
Land value 105K
Land size 794 sq mts
Property : 3 bed b/veneer Ex Gov
Features and benefits : 150 mts to main shops,clubs and schools. Outstanding open views of the mountains and district. Potential to add value through renovation.

Kind regards and a happy New Year to all
Simon
 
Congratulations Simon!

47% land value is not too bad. As a matter of interest, how do you estimate the land value?

Cheers,

Lotana
 
Had our offer for a new PPOR accepted on Xmas eve, at $292K it would
be one of the cheapest houses in Moonee Ponds these days but whether
or not it was a bargain...let's just say that it's not exactly a palace.

The details

3 bedrooms
Single fronted, semi detached
Hawthorn brick on bluestone foundations.
Features: very close to shops and train station, train tracks on the other side
of the street. Potential to add lots of value through renovation.

We should have fun doing it up and when it's finished (estimate 12 months)
it will be a $400K property even with the proximity to the railroad lines.

andy
 
Hi Lotana
In the ACT we get given a UCV with our rates notice. Also that info is found on www.allhomes.com.au
In this area houses usually sell for around 2.5 to 3 times their (counsel) land value depending on the quility of the improvement or its potential.
after a bit of a reno the property should rent for around $280-$300 per week
Kind regards
Simon
 
Another thought on the strategy we used this time.
I believe because we were the first to put in a full price offer and were able to exchange contracts quickly and the first people to offer on the property other prospective buyers backed away presumably because they did not wish to get into a bidding war. I know I would have walked away if there had have been any other competition.
Kind regards
Simon
 
in my shire the unimproved value of the land, on the rate notice - has nothing to do with the real value of a vacant block.
 
ruk - that is the case 90% of the time - its a yardstick, a very long one :p ive posted this somewhere else as well - just do a search if you are interested

simon/julie - the rule of 3X UCV is also standard for most areas around Aust - again as a yardstick... I believe its taught in land economics degrees / valuers also...
 
Ruk

It all comes down to knowing your area.

In our area the UCV is a useful guide - especially when compared to the price of new land in the outer suburbs of town. I know where I would rather own land - close to everything - not out in the sticks.

Julie
 
I was able to purchase a property vermont south that was being advertisted for 320k on xmas eve for mid 200's because the vendor wanted to sell before xmas. they had previously rejected an offer for 300k
 
Well I think the real estate agent was also desperate for a sale before xmas, I basically wrote out the check for 10% deposit in front of the vendor and 10pm xmas eve, I got the call my offer was accepted :)
 
Back in October I was negotiating to buy a site down South. My offer and conditions were accepted but 3 days later the agent rang me to tell me that the deal was off, the vendors wanted more money as they feel the market was still moving. I told the agent to call me back when the vendors came back to earth.

Between Xmas and New Year I saw the site re-advertised in the local paper with a different phone number. It was the vendor's number. When I called the vendor knew who I was so we started chatting. I negotiated a deal on the spot with very favourable conditions for $200,000 less than my originally accepted deal.

I'm happy!
 
See Joanna,

the vendors were right...

The market WAS still moving.

Just not in the direction they thought. :)

asy :D
 
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