Never purchased anything with an asking price.
Have you ever paid over asking price?
- Thread starter BayView
- Start date
Exactly the same here, with the exception that mine are Sydney, Brisbane, Regional NSW, Regional Vic & SA. Everything we've ever bought has been a very affordable property for a FHB, but had no competition from them. They only come out en masse when prices are rising, then cry poor.
I have paid over asking price once by 1k in a hot market, in hindsight I was a little green but it turned out to be a good buy.
Strangely enough I have purchased 10% under list price but 2 years later it was worth slightly less again at the height of the GFC. As others have commented FMV and list price are often very different things
Strangely enough I have purchased 10% under list price but 2 years later it was worth slightly less again at the height of the GFC. As others have commented FMV and list price are often very different things
Was your buyer an investor, or O/O?I paid 25k over asking price for ppor, 12 months later nearly doubled my money on purchase price
On that note; we bought our PPoR No.3 for $450k, and sold it 2 years later for $750k - to an O/O.
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I'am the buyer, having trouble trying to work out 0/0 part????
Removing NG would mean there is less potential buyers which means less demand but same supply which reduces price.
However rent would increase as less investors might be able to afford properties. As there would be same demand but less supply.
owner occupier
Surely it is dependant on the asking price? I've paid over asking price many times - it all depends on how the asking price compares to the market value. If they price it below market value, I will offer above the asking price with no hesitation in order to secure it.
If that makes me less astute, so be it. It seems to be working for me.
Sorry Bayview only just saw the rest of your comment and it all made sense.
Haven't sold the ppor, real-estate agent gave us a price guide.
We were trying to figure out if we should sell, then move onto the next project.
Poll result seems to indicate plenty of investors pay over asking price. With investor purchases as record highs and first home buyers at record lows, its a bit disingenuous to think investors are not bidding FHBs out of the market. Of course they are. I did it myself 12 years ago, felt bad about it at the time. Investors are also often driven by emotion, the powerful emotion of greed.
Been buying property since about 1976/77. Never paid over asking price, although if it was a PPOR in a prime location with a unique feature then I probably would.
Bought at auction? - Once. A block of land in Kingsley (Perth) for $17k around 1982/3. I remember it was a land release and this was about the 3rd or 4th block of around 20 being sold. The bidding got to $16k and I put my hand up and the next thing I knew, I owned it. It was a great buy even back then. We had a house built on it ... house & land $55k from memory.
Mystery
Bought at auction? - Once. A block of land in Kingsley (Perth) for $17k around 1982/3. I remember it was a land release and this was about the 3rd or 4th block of around 20 being sold. The bidding got to $16k and I put my hand up and the next thing I knew, I owned it. It was a great buy even back then. We had a house built on it ... house & land $55k from memory.
Mystery
It depends on your strategy but I've always viewed competition as a good thing, especially if you're looking to buy and hold. If there is strong demand when you buy, then there will/should be strong demand when you sell. And we all know that demand drives capital growth. Obviously you need to use common sense in this approach - don't just pay any price because others are willing to.
There are of course exceptions to every rule, but if you're looking for quality property you'll rarely find one that is not in demand, even in depressed markets.
It's all about both timing & knowing your market. Strong demand could just be a by-product of a fast moving market. That's not when I like to buy. I like to buy when buyer demand and confidence is low. Team that up with an auction in an area where auctions are not popular and you've got the perfect scenario to get a bargain, so long as the reserve is set at the right price.
For instance, we bought one many years ago now for $180k at auction. If it had sold at private treaty the sales price would have been around $260k, but it was a bank foreclosure with a low reserve being sold by an out of area agent, who wasn't familiar with pricing, and the only advertisement was a tiny little box in the paper which wasn't in the Real Estate section.
My last IP purchase was in 2013.
It was offers over $700k.
I paid $710k. Found out later the bid below mine was $700k.
Wife still says i paid $10k too much. I thought it was worth $750k.
3 months after purchase date, house down the road sold for $1.025m.
Just recently the house across the road (bog standard McMansion style) sold for $2.35m.
It was offers over $700k.
I paid $710k. Found out later the bid below mine was $700k.
Wife still says i paid $10k too much. I thought it was worth $750k.
3 months after purchase date, house down the road sold for $1.025m.
Just recently the house across the road (bog standard McMansion style) sold for $2.35m.
First property I ever bought was at auction was an IP
I've also paid asking price for a property. It was an unconditional offer, was a great price didn't want it to go to open. There Was multiple offers on the table already prior to first official open. I got contract signed within 3 days of it hitting the market. Agent was still getting higher offers weeks after I had already signed
was an IPI've also paid asking price for a property. It was an unconditional offer, was a great price didn't want it to go to open. There Was multiple offers on the table already prior to first official open. I got contract signed within 3 days of it hitting the market. Agent was still getting higher offers weeks after I had already signed
The usual sales process would be that the vendor's asking price is higher than what they are willing to accept, just as the purchaser will put in a first offer lower than what they are willing to pay.
Both know what the other is doing and a selling price finishes up somewhere in the middle.
If an investor is willing to pay more than the next highest offer than it can be said that they have contributed to increasing prices. If the vendor wants to sell they will eventually need to accept that lower offer.
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