Making an offer before auction

[salt]

I've found a property on realestate.com.au that I'm really interested in. It's rather run down, but has a lot of character and is on a lot of land.. exactly what I'm after!

Any how I used the "view page source" trick to view the price guage. Would this normally be a real indication of the desired price?

Thanks

 

[jerrybee]

Would this normally be a real indication of the desired price?

Thanks

Yeah I would think so, but probably lower than they actually think just to get more enquiries. Throw another 10% on that and it's probably within their expected range.

 

[travelbug]

Find out whether they are actually taking before auction bids or just trying to find out what your buy price is to use it as a minimum for th auction. You run the risk of their vendor bid coming in at your price in an order to push you higher.

Is it privately owned? If it's a bank repo it WILL go to auction.

site:somersoft.com "before auction" Type this into google for lots of threads on this subject.
good luck

 

[PropertyExtreme]

With the maker like it is at the moment, agents are going more for auctions or offers over. They generally will give you a range (usually $100k) as a guide price. But this is not usually very accurate and the main purpose is to get people to the auction and create scarcity for that property.

If you want to put in an offer beforehand do some research around realistic prices in the area and offer something the will take notice of. Some agents may be a bit hesitant to except offers before the auction at the moment due to the current buying frenzy.

 

[salt]

It's hard to guage the value of the property. It's a very run down old farm house with 50 acres attached. It needs a LOT of work. I've completed a few reno's before on really run down character homes, so this is exactly what I'm looking for.

Houses in good condition in this area sell from 200k up to 700k depending on the size of land.

I'm sure the land also needs a bit of work, to get it workable again too.

It's listed between 100k to 200k in the page source code. I was thinking to offer $185,000... but maybe I should offer 200k to lock the deal in? If they wanted more than that, well I can't afford anything above that anyway.

 

[Corey Batt]

15k higher isn't exactly much more in the scheme of things, so it may be worth pursuing. Generally agents and vendors want to see a strong price to cancel auction and proceed with an offer.

I've had quite a few clients do this recently, the best I can describe such a tactic is 'shock and awe'.

 

[nhg]

Find out whether they are actually taking before auction bids or just trying to find out what your buy price is to use it as a minimum for th auction. You run the risk of their vendor bid coming in at your price in an order to push you higher.

Is it privately owned? If it's a bank repo it WILL go to auction.

site:somersoft.com "before auction" Type this into google for lots of threads on this subject.
good luck

I would heed Travelbug's words of wisdom. I've been caught out by this a few times early on.