Land V House

[Mando]

I'm looking at a property in Footscray, Vic - as a place to live - not an IP.

Block is 640m2, in theory could be sub-divided - but we would not do so as we'd want it to become our family home.

Here it is.

House itself is old style - beautiful facade. Definitely needs some work. Repainting, restumping, re-roofing - and some plaster work. Having said this - it's quite liveable now. The above would definitely give some room to negotiate down - but the REA is already playing the LAND card - saying that a block like this so close to the CBD will push up the price more than anything else. His estimation is that this will end up selling for $700-750k - possibly dreaming, possibly not. Note: There is no price range quoted in the ad.


Appreciate some feedback on how to approach this one.. Yes it's a bit like "how long is a piece of string" - but am wondering how much the land size/location will affect the overall price given the amount of work to be done.

Cheers

 

[The Y-man]

You can't negotiate anything yet - it's going to auction. Th only other way is for a offer prior.

If it is seriously in the 700k range, it's going to be outside the FHB target area - so I suspect it will be safe to let it go to auction and see if there are any serious bidders.

Ask for a s32 to lock in your place in their minds.

Be cagey about giving ANY indicaitons on what you are willing to pay. Do point out everything that is wrong with the property (good time to do this, is at every open inspection in a loud clear voice so every other person inspecting can hear you).

Cheers,

The Y-man

 

[Mando]

You can't negotiate anything yet - it's going to auction. Th only other way is for a offer prior.

If it is seriously in the 700k range, it's going to be outside the FHB target area - so I suspect it will be safe to let it go to auction and see if there are any serious bidders.

Ask for a s32 to lock in your place in their minds.

Be cagey about giving ANY indicaitons on what you are willing to pay. Do point out everything that is wrong with the property (good time to do this, is at every open inspection in a loud clear voice so every other person inspecting can hear you).

Cheers,

The Y-man

Thanks y-man.

I agree that this appears to be out of the FHB range. The groups looking through it on the weekend looked to be in their late 30s and above.
Am considering making an offer prior to auction. Would this be a foolish strategy?

Given that there's no official range given - am unsure how low to make the initial offer..

s32 has already been requested.

 

[The Y-man]

Given that there's no official range given - am unsure how low to make the initial offer..
.

Go to the ad, right click and go to "view source".


price=600k_750k

Have a read of:
http://www.somersoft.com/forums/showthread.php?t=51998&

Cheers,

The Y-man

 

[Sheryn]

Go to the ad, right click and go to "view source".


price=600k_750k

Have a read of:
http://www.somersoft.com/forums/showthread.php?t=51998&

Cheers,

The Y-man

What a neat trick to click on and view source, took me a few goes to work it out but what a great way to obtain information.

 

[Mando]

Great trick y-man...

I'm interested in the groups thoughts re offers prior to auction. I read the thread ym linked to - but am interested in ppls thoughts re the land vs house value..

 

[Mando]

...the plot thickens - the ad now contains a price range: 700-750.

My experience of this agent is that they quote conservatively and sell for a good 20-50k more than the top end of the range.. Is this property worth 800k? To someone i'm sure it does...

 

[wylie]

Go to the ad, right click and go to "view source".

price=600k_750k

Of course, this is a handy tool, but unfortunately once you get to $1M - $3M it is not much help at all. I wish the ranges were smaller over the $1M.

 

[INVSTOR]

Go to the ad, right click and go to "view source".


price=600k_750k

Have a read of:
http://www.somersoft.com/forums/showthread.php?t=51998&

Cheers,

The Y-man

I've done that 4 times now for Bris properties I've been interested in. So far when I've spoken to the agents the vendor is really wanting another $100,000. (1 sold at auction and 2 still on market) And agents aren't interested in my offer close to adprice. It did work 1 time though.

 

[ozi]

Mando, the property sold for $736k

 

[Mando]

Yep.. I was there.. To be honest I thought it would end up going for a lot more..

 

[Propertunity]

Of course, this is a handy tool, but unfortunately once you get to $1M - $3M it is not much help at all.

Well wylie, it IS handy for me. I'm obviously not in your league, but if I'm looking for an IP and its going to auction AND it is in the range $1M - $3M, I know not to investigate it further and move on.

I do know what you mean though

 

[wylie]

Well wylie, it IS handy for me. I'm obviously not in your league, but if I'm looking for an IP and its going to auction AND it is in the range $1M - $3M, I know not to investigate it further and move on.

I do know what you mean though

We are not looking to move, but we did look at a place that started over $1M (maybe around $1.3M from memory) and just sold for less (not sure what price yet but the last adverts were asking for offers over $950K). I have to say that it was NOT worth $1.3M anyway, before anyone grabs that piece of info to back up Keen's theories .

It is just that there are several houses in my suburb that I would be interested in if they were say $1M or just over, but they are wanting $2.5M for one and unfortunately the range given is $1M-$3M which is no help at all.

We don't want to spend anything more on a PPOR that we have now, and we are not planning on moving, but if one of these $2.5M houses dropped to just over $1M I would definitely look at it (along with plenty of others).

I just find the $1M-$3M range really frustrating.