Purchasing for first time

From: Dr Kaos


Ladies/Gents,

I am in the market for my first investment property. I have been looking at 1-2 bdrm flats in the Caulfield area (near the Uni) and I have found a 1 bdrm for sale for $189,000. Now to the question. Do I put in a bid at say $185,001, or do I just go for $189,000, knowing, it would not feel good to lose out for $1-$2000.

Thanxs
Kaos
 
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Reply: 1
From: J Parker


Put in a lower offer and see how you go. They can only say no or counter offer. Set yourself a limit based on what you would be happy to pay (based on your strategy ) for the property, but do your due diligence first and make sure it is priced at fair market value first.
Don't be afraid of missing out- there will always be another property next week!
Good luck!
Jacque :)
 
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Reply: 2
From: Manny B


Hi Dr Kaos,

I'd make an even lower offer to start with, ie. $180,000 (4.76% below the asking price) & you never know... if your offer is rejected you can always increase it (the vendor may be prepared to accept that offer, but you will never know if you don't give it a go)... I don't know the market there, I assume you have already done your research & would know its true value...

FYI, I purchased an IP a couple of years ago 11% below the quoted price due to making a low ball offer to start with (don't be afraid to do so, they can only say no)...

Cheers,

MannyB.
 
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Reply: 2.1
From: Michael Yardney


I agree with the others.
Work out what the property is worth by comparing it with similar sales.
Then make an offer that is considerably below the asking price but still sensible. It depends a little on how long it has been on the market. If it has been for sale for a while, the vendor may be more keen to look at offers than if has just been listed.
While I have had quite some success buying properties considerably below asking price over the last few months, yesterday I paid full price for a property (development site with permits for townhouses) because it was a fair price and I could still make money out of the deal. As you suggested, it wasn't worth losing a good deal for a few thousand dollars. But I based my decision on my knowledge of what the property was worth
Michael Yardney
Metropole Properties
 
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