Have you ever paid over asking price?

[BayView]

Further to the whole NG - abolish or keep due to effects on price - argument;

Who has ever paid over the asking price and why?

I never have, and have never bought at an auction..

 

[baby blue eyes]

Not yet, but the last time I bought was at auction, and also have bought in the offers over in Sydney just when the market started to move. Then I bought outside of Sydney

 

[Peter Parker]

Who has ever paid over the asking price and why?

I have. All of $700 over. First offer was about $5k under then it was lifted after the agent indicated that the asking price (which was advertised as $XXX XXX+) was firm.

The property was purchased as a PPOR, is in an excellent location and has a large amount of land for its type. Nothing comparable for a lesser price has sold in the suburb since.

Best decision ever made.

 

[spludgey]

Yes, $15k over on my PPOR, but it was "offers over...".

 

[j_p]

Never paid, i did offer over asking price (wasnt offers over) the first week a property was listed during the first open house. I still missed out as there were four other offers by the end of the day. One the same and another higher again which was accepted.

 

[C-mac]

I've always paid under asking price except for one occasion where I paid exactly the asking price. Didn't regret it. Never purchased at auction and probably never will unless maybe it was a PPOR scenario.

 

[D.T.]

No way, always under

 

[natedog]

Good question actually.....We have only ever paid over asking once, and at the time it was our first ever established house purchase, we were absolute rookies in the negotiation process, (probably paid $10k more than we needed to $238k versus $228k) it was an emotional one as it was going to be our PPOR to move into. Every other purchase we have made has been under asking. Digging deeper into it also, every other purchase we have made for an IP there has never been another offer we were competing with, it was purely us vs the vendor. Historically the wife and i tend to buy in areas when noone else is apparently.

 

[Jamie M]

Paid slightly more than listed price for our PPOR - but the listing price seemed quite reasonable.

Cheers

Jamie

 

[see_change]

we paid asking price for our weekender , but the asking price had dropped by close to 50 % from the initial asking price.

Cliff

 

[Big Will]

Since in Melbourne auctions is the normal way and they are usually 10% below where they should be I guess I would have to say yes.

However I did pay 10k more than the 500,000+ buyers when the bank value was 530,000 - does this constitute a yes?

 

[Terry_w]

I think most people who are buying in Sydney atm are paying more than the asking price.

 

[jackbak]

Have always bought at auction and have paid over quoted/reserve price. I always buy good quality properties and these are generally in demand.

Last one I bought was $92k - $192k over the quoted price range.

 

[sumterrence]

For my PPOR I paid $5k more than asking price, all IPs are purchased under asking price by 15k-20k

 

[citystar]

Never paid asking price before however I focus on places that are in need of a quick or sometimes full renovation so there is always room to move on the sales price.

 

[Terry_w]

I was talking to someone about this the other day. Imagine if you purchased a house in 1985 for a $100,000. What would it be worth now?

And would it really matter if you had paid 10% more than it was worth then?

 

[jerrybee]

I was talking to someone about this the other day. Imagine if you purchased a house in 1985 for a $100,000. What would it be worth now?

And would it really matter if you had paid 10% more than it was worth then?

This is exactly my mindset. I've paid between 2k and 30k over the asking price in the past. A place I bought last year I valued at around $850k, when it hit the market at $700k I almost had a heart attack. When the seller counter offered my $700k with $730k I didn't even blink an eye. A smaller, crappier house down the road in a worse location just sold for $795k about 12 months later. The house behind mine also just sold, for $950k (same size, except it was really nicely renovated)

30k meant 3k from my own pocket - which was peanuts when you look at the bigger picture.

 

[sanj]

I was talking to someone about this the other day. Imagine if you purchased a house in 1985 for a $100,000. What would it be worth now?

And would it really matter if you had paid 10% more than it was worth then?

Personally I think The whole thing is often about ego more than the investment. I'd happily pay above asking if the numbers added up, after all asking price is just a number set by the vendor. It's up to the buyers to work out where they see value at and that could be below or above asking.

I remember missing out on a property that I offered 10 or 15k over asking o because I was trying to be too clever, I missed out some good and easy profits on that site. From memory even paying 10% over asking would have been well worth it

 

[Propertynewby]

Paid $15k over asking price and put a 24 hour time limit on the offer. I wanted the property and the numbers stacked up for the price I offered. Like terry said, if it's a buy and hold I don't see an extra 10k to 15k an issue.

 

[BayView]

I was talking to someone about this the other day. Imagine if you purchased a house in 1985 for a $100,000. What would it be worth now?

And would it really matter if you had paid 10% more than it was worth then?

I think this is directly affected by the income and/or financial position of the investor's/FHB etc at that time in their life.

An investor who earns $150k per annum or more etc is probably not going to be too fussed about another $10k on the price.

The Mum and Dad couple who are starting out, and have say; a combined income of $100k per annum - another $10k could be an important issue.

They may have the same mindset as the high earning investor in terms of the long-term effect of another $10k, but don't have the finance resources to simply wave away another $10k.