How fussy is too fussy for a PPOR?

[DaveM]

I just called the agent to get an indication of what sale price the owners from Central Avenue are really expecting....$440,000 at least!

Ask the agent if they have heard about Melbourne's property doldrums or if they are still living in 2006.

 

[westminster]

I just called the agent to get an indication of what sale price the owners from Central Avenue are really expecting....$440,000 at least!

Think i might pass on that one!

This is why I was asking about the whole lowballing thing, I can't imagine a vendor who is expecting 440 will accept 370. Even though it says 390 plus.
I know you need to add 10% blah blah blah....

I don't know about Vic but in WA if you put FROM $390,000 and someone offers $390,000.01 then it is supposed to be accepted. No one has taken anyone to court over it yet but the REIWA guidelines state that if you put FROM then you have to accept a price above it - be that one cent over.

 

[Chloe]

There's an unwritten rule in Melbourne that when its advertised as plus you need to add 10%.

It doesn't work in all cases but that's the expectation.

 

[dubsey]

How fussy is too fussy?

Well, we just bought our first place after looking for about 7 months. We rejected a whole heap of properties for various reason not limited to below

- Places with one bathroom
- Places without a north or west facing backyard
- Multi level residences
- Illogical floor plans
- Places with poor street presence
- Places with units next door
- Places with a laundry in the lounge room
- Places far from public transport
- Places on main roads

The property we bought we can see ourself living in for the at least next 5-7 years without getting bored with it. We are not really the flipping property kind so a place where we could live and call a home was far more important than the potential for a renovation.

At the end of the day its your money, its going to be your home for a number of years, you should be super fussy.

 

[westminster]

I was ready to move out of my first PPOR the day I moved it. It was built to a budget and there were a lot of compromises in it. 10 years on I'm still in it but ready to move at the drop of a hat

 

[S.T]

There's an unwritten rule in Melbourne that when its advertised as plus you need to add 10%.

It doesn't work in all cases but that's the expectation.

Hey Chloe, I think you'll find it is written law now but I think there has only been a couple of agents fined.

Edit: Found link

http://www.consumer.vic.gov.au/hous...buying-property/understanding-property-prices

 

[Chloe]

Ha!

I made an offer of $368,000 and just got an email from the agent to say that negotiations are in excess of $390 so i need to put in my best offer!

The CIV on the rates notice says it's $385,000, does this mean council valuation for the house and the land?

 

[Aaron_C]

The CIV on the rates notice says it's $385,000, does this mean council valuation for the house and the land?

Yes. Site Value = Land Value only (for land tax purposes). CIV = Land + Building.

 

[Chloe]

Thanks Aaron, I'm puzzled as to why the vendor thinks he's going to get $400-$440( according to agent).

 

[Aaron_C]

Thanks Aaron, I'm puzzled as to why the vendor thinks he's going to get $400-$440( according to agent).

Well most people would argue that the CIV is irrelevant for calculating what something is 'worth' since CIV is usually conservative. However, I notice that the opposite is happening right now for some properties, particularly those that have something wrong with them.

 

[Chloe]

I hate dealing with agents.

She says in her email that "it appears" that the other offer is in excess of $390,000.

Well it appears to me that you are probably lying and the house is not worth $390!!

Wish I could say that.

 

[Aaron_C]

I hate dealing with agents.

Just remember that the agent's best motivator is their commission. No sale = no commission. No agent is going to forego a sale for a few extra thousand dollars if the lower offer is a sure thing (and not a subject to finance).

 

[Chloe]

I was going to ask this a while ago, how can I make an offer not subject to finance?

My broker says my finance is all approved and I can make offers but just state I need 5 days for finance as the bank need to value the property for the loan.

Is there something i'm missing?

 

[Aaron_C]

I was going to ask this a while ago, how can I make an offer not subject to finance?

If your broker has confirmed that your income is solid, your LVR is below 80%, then you can make unconditional offers in most cases.

 

[Chloe]

LVR is 75%, the loan is with Commonwealth and they say it just needs to satisfy the bank valuation.

Is this not the case with all unconditional offers when people are financing the home?

I think the broker is just being extra cautious. I'll call him tomorrow and see if i can make it unconditional.

 

[Aaron_C]

In Victoria if you never make an unconditional offer you miss out on the good properties since most of them go to auction. If you service well under 80% and the security is a proper one (no student accommodation etc) then it's not an issue.

 

[starter]

Should just call Aaron instead!

 

[Chloe]

It's for the ugly and dated 70's house i posted about.

I'll double check with the broker tomorrow and see how i go.

Can it still be subject to a building inspection but unconditional on finance?

Sorry for all the questions!

 

[starter]

It can be whatever you want the offer to be. Vendor though would view the offer more favourably if it's unconditional.

 

[Chloe]

Just heard from my broker and got the ok to offer subject to bank valuation, although not quite unconditional but sounds better than S/T finance.

I need a building inspection though as I don't want to end up with a lemon.
This is not a walk in the park!