Price

W

WebBoard

Guest
From: Trina Blum


Hi,

I am going out to start my hunt this weekend and check out a few home opens and talk to a few agents. I know the agent will ask how much we are looking to spend so what is the best way to answer that question if I don't want them to know exactly what our limit is?

If I don't want to pay anything more than $150 000 how should I let the agent know in what price bracket I'm looking (if they know exactly our limit then when we actually put in an offer they will know how far we are willing to go).

Regards
Trina
 
Last edited by a moderator:
Reply: 1
From: Nigel W


Always a difficult one. They'll do the old "below and above" approach usually.

Ie show you one or more poorly presented and usually cheaper properties than your quoted price limit and then "viola" show you one in the 10-40K bracket about what you're looking for. The object being that (obviously) the more expensive property will look and be so much better than the others that you'll stretch yourself to buy it rather even though it is beyond the budget you asked the agent to show you in the first place!

I had an agent do this to me when shopping for my first property. Unfortunately I was in his car and thus at his mercy during the trip. But geez did I give him a huge serve when we got back to his office!

I'm far more specific (and I hope knowledgeable) now about what I'm after and only look at properties when I know the price.

Why don't you quote a range to the agent like they quote you - ie well we're in the 120-140 range (then maybe they'll show you the 130-160K bracket!

Good luck
N.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1
From: The Wife


Hi Trina,

Theres no right or wrong answer for your question, There are lots of different things you can do, I think it depends on the agent, some people swear by the adage of never ever disclosing how much money you have to spend.

Me personally, I sorta go by the ole honesty trail, I always say, "

I have plenty of money, in fact I can do cash contracts till the cows come home, but I am only interested in a bargain, dont try to sell me something ho hum, Im looking for an investment, and its gotta be a bargain, its gotta have something special about it that I will just say WOW I gotta have me one of them,
dont go showing me boring stuff, dont go showing me no 5-10% return stuff, show me something with potential, show me something that the vendors are VERY negotiable, I dont care if its ugly, I dont care if it needs work, I dont care if its a subbie with some council problems,I dont care if it has holes in the walls, show me the stuff nobody else is looking at, ok? but its just GOTTA be a bargain, thats the kind of gal I am, a bargain hunter, yep, I even call myself the bargain hunter, luv my bargains "


That is quite literally what I say.

And you know what, some will show you what they think may be a bargain for you, and some agents will just stand there and say "No, I cant help you, sorry", which is GREAT! cause it means you havent wasted your time or theirs.


I like all the ones other people dont like, means its heavily negotiable, and if its ugly, or got holes in the walls, its reflected heavily in the price.

Of course, a dog is a dog, some properties other people dont like, and for a just reason, you could never do anything to it to improve it, thats a dog, dont buy them, but you know, occasionally if sift thru it all, you find a gem, that could propel you forward at a much greater speed than your average buy. One would only need a few of those to set you up for some 'bigger and better' deals.

Or sometimes, if its a subbie with problems, some people just cant handle the problems or wait the time out with council, I can.

My other technique I rely upon heavily, is to shut up and listen, and when the vendor or agent stops talking , I apply my 'W' words, and then listen some more, The ability to listen will help you greatly.

Also the previous poster said he was trapped in their car, that drives me crazy, I always prefer to take my own vehicle.

Good Luck


TW
~I had six honest serving men - they taught me all I knew: Their names were Where and What and When - and Why and How and Who~
 
Last edited by a moderator:
Reply: 1.1.1
From: Rixter ®


Hi Trina,

What areas of Perth are you looking to buy in??

Happy Investing,
Rixter :)
 
Last edited by a moderator:
Reply: 2
From: GoAnna !


Hi Trina

I don't know about you Trina but I don't have an amount that I am looking to spend. It would all depend on the property. What is that property worth to me. For example I might have 150K at my disposal but have found a gem for 100K. Or something brilliant for 300K. It might be so good that I might even be prepared to take in a partner to get that one.

I tell the agents what I am after in essence. Like I am looking for a property that shows higher than usual returns for this area and am happy to do some cosmetic work on it. Sometimes they show me stuff that is out of my league. That's fine too. It broadens my understanding of the market and of the deals that are out there.

Like TW I also like to ask a lot of questions. I discuss the market with them, what properties are moving fast and slow and anything else they are happy to talk about. I don't believe everything I am told but all these conversations (along with my other research) build to create a picture in my mind.

Happy hunting.

GoAnna !
Why not go out on a limb, that's where all the fruit is. (Mark Twain)
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 2.1
From: Trina Blum


Thanks everyone for you input and advice, at least I have some idea of how to deal with the agents now.

Regards
Trina
 
Last edited by a moderator:
Top