How do I tackle this ?

[smule]

Looking at a property which passed in last weekend, I didnt view the auction but they were asking 490 + and it was passed in.

Now up for private sale at 540.

I had a look at Sec32's all looks good and noticed encumberence taken out May last year, so ran a check and discovered that the house last sold in April 08 for 501.

How do I tackle making an offer and negotiating on this property.

FHB here, so just unsure on code of conduct I've read the other threads, so please bear with me should this thread sound repetitive.

Thx

 

[willair]

Looking at a property which passed in last weekend, I didnt view the auction but they were asking 490 + and it was passed in.

Now up for private sale at 540.

I had a look at Sec32's all looks good and noticed encumberence taken out May last year, so ran a check and discovered that the house last sold in April 08 for 501.

How do I tackle making an offer and negotiating on this property.

FHB here, so just unsure on code of conduct I've read the other threads, so please bear with me should this thread sound repetitive.

Thx

Hard to say,if the property was passed in at 490k,now it's back on the market for 540k,and the property sold for 501 in April 08,the question is what do you think it's worth to you?, the vendor must be happy with the Agent they can't even get a bid at 490k at a high vendor only cost auction, now the vendors try a private sale,you could always start at 400k and work up.no use starting at 500k because you can't go back down only up, but when you work out the entry -exit costs for this property and holding costs the only person to make any money so far is the real estate agent ..
..good luck willair..

 

[smule]

So I should place my offer in the 400's ? I was thinking of offering somewhere around low 500's..

Hmm.. i really got this game wrong havent I ... lol

BTW - Same agent that sold house to the new vendor 12 mths ago is now on-selling it for him too.

 

[buzzlightyear]

Don't let the advertised price sway you. What have other recent comparable properties sold for in the area? If you don't know, then you shouldn't commit to making a bid, especially of half a million dollars.

 

[Jamie_D]

Tell the agent you were at the auction and witnessed the event.

Offer around $450k.

Can you supply a link to property on RE.com?

Do you have a pre-app in place?

 

[smule]

Hi Jamie

Yes I can, I'm in negotatians with the agent at the moment whos telling me that she was offered 505 after auction and wont entertain offers below that.

Somewhere between 510-540 will buy the house.

The house needs a lot of work and is tenanted on a month to month basis, which is fine by my requirements

Should I be getting an independent valuation on this property before making an offer?

http://www.realestate.com.au/cgi-bi...t=&header=&cc=&c=23008303&s=vic&tm=1236752361

 

[The Y-man]

Get a building inspection done rather than a valuaiton, and make an offer based on the report. I see some big cracks and possibly water marks (roof leaks?) - so all these things need to be accounted for.

Was the last bid a vendor bid? Whenever we have passed in property, we end on a vendor bid at a price approaching (but below) the reserve.

Also, for Victorian, isn't there some FHB benefits you lose above $500k?

Cheers,

The Y-man

 

[Ms Jade]

Great advice on the building inspection from Y-Man. Interesting that the vendor bought it for 501k less than 12 mths ago. I wonder why they are selling, as it looks like they'll be losing money. Maybe the reno was going to be more of a headache than they first anticipated. I don't know prices in the area to know whether 501k was fair market value at the time, but I do really like the house, BTW. The first few days after auction are usually a good selling time. If they haven't sold it this week they may drop their expectations. I'd ask someone to go to the next OFI & see how much interest there is at the advertised price. It may be that you're the only one that the agent is negotiating with right now.

 

[Alabex]

i personally think you would be wasting your time by offering below the price the current vendor paid. It is very unlikely that they would accept it and you do not want to put the vendor off side bby offering too low.

If you dont want to start above the previous purchase price, maybe start at $490... the original guide price. I think to get any kind of reponse from the agent or the vendor as to their actual expectations you will need to be seen as serious buyer.

 

[Jamie_D]

Get a building inspection done rather than a valuaiton, and make an offer based on the report. I see some big cracks and possibly water marks (roof leaks?) - so all these things need to be accounted for.

Was the last bid a vendor bid? Whenever we have passed in property, we end on a vendor bid at a price approaching (but below) the reserve.

Also, for Victorian, isn't there some FHB benefits you lose above $500k?

Cheers,

The Y-man

Correct Y-Man

If the property is over $500k you will not receive the state gov grant of $3k or $5k depending

It looks like the property does need some work - again Y-Man is on the money with a building insp

 

[Bradsdad]

Get a building inspection done rather than a valuaiton, and make an offer based on the report. I see some big cracks and possibly water marks (roof leaks?) - so all these things need to be accounted for.

Was the last bid a vendor bid? Whenever we have passed in property, we end on a vendor bid at a price approaching (but below) the reserve.

Also, for Victorian, isn't there some FHB benefits you lose above $500k?

Cheers,

The Y-man

Yep, the bonus of $3k for an established home. Not a big issue if the property is right.



As mentioned, get the building/pest inspection clause put in and finance to boot.
Also do your own homework on recent sales in the area so you have an decent idea on the properties real worth. Once armed approach the agent with an offer that you have a some room to move (unless of course it's a PPOR that you MUST have). This is assuming they're not asking too much.

It makes you wonder how fast the vendor needs to sell if they only purchased <1 year ago. At $540 they will have barely covered costs.


Regards
Steve