Why is this not selling!!!

[Vincent Booth]

Hello everyone,

I am new to property investment. I have been following this property for some time now:

http://www.realestate.com.au/property-house-qld-warner-113221619

Median house price for Warner is around $450k+

Its been on the market for around a year now and still not sold. I spoke with the agent today and she said an offer around $350k will be acceptable. The tenant is paying $400 per week and willing to stay

I willing to make an offer but being my first IP, I am a bit unsure.

Calling out for all property experts, can you see any issues/ concerns with this property/ suburb? Is this a good buy?

Thanking in advance.

Cheers:
Vincent

 

[MTR]

Just because $450K is the median does not mean that this is the actual value of this property.

Need to compare apples with apples, properties that have recently sold that are in similar street, same size block, age etc.

If a property has been on the market for this long my initial reaction is it is overpriced.

A good start would be to look at comparable sales. Also, as part of the snooping process I would ring at least 3 other RE agents and find out some insider info on this property. You will be surprised how many will be more than happy to give you all the goss.

Cheers
MTR

 

[geoffw]

It is a very small block which may be why it is selling below the median. Also a sitting tenant may put off potential buyers.

 

[Property Hoarde]

Just by looking on street view.

The house is a little weird, the front fronts onto a reserve not a street.

You need to access the house from the back lane or walk down a path.

But the biggest issue would be the reserve has the big power lines.

Not a view most people like.

 

[Angel]

I live one suburb away from Warner. I would add that Warner is out in the sticks. You have to get in the car and drive to any schools and shops. Some salesmen will tell you that Warner is close to the train station, but I would suggest one needs a compass and a cut lunch to get to the station. Yes there are buses in Pine Rivers, but they are not up to Sydney or Melbourne standards. In fact they are not up to Brisbane standards.

 

[Colin Rice]

It usually comes down to price but it would also be money well spent to include a building inspection in the contract conditions to ascertain the dwelling is structurally sound.

This is great advice as well, REAs loooove to talk;

A good start would be to look at comparable sales. Also, as part of the snooping process I would ring at least 3 other RE agents and find out some insider info on this property. You will be surprised how many will be more than happy to give you all the goss.

 

[chindonly]

The land component is very small compared to many in the area.

The house also looks (from above) to be quite small for a 4 bedder.

Just look on the aerial map for comparison.

 

[chindonly]

There are also some large developments nearby at Warner Lakes, so purchasers have plenty of options.

re.com has 722 for sale in the suburb.

 

[handyandy]

Simply not a good buy.

Has no prospects of adding value.

Tiny block and very non standard.

Garage access is a nightmare and some badly parked car will block you in or out.

Absolutely no street appeal. Facing park which in other areas has proven to be a security risk.

I would suggest that you find a more standard property as a first IP.

 

[weg]

Small block, power lines and tower only meters away, no street appeal at all...

Offer them 320K firm but expect to sell at a lower price down the track too - although a decent front landscaping job could do wonders to improve appeal.

 

[bbmick]

Looks like bottled gas (LPG) there to me - a lot more expensive to run than natural gas. Might put some off?

 

[AlmostBob]

and reduced to $349K

 

[geoffw]

Its been on the market for around a year now and still not sold. I spoke with the agent today and she said an offer around $350k will be acceptable.

Apart from everything else which has been said. If the agent suggests a price, and you are interested, counter offer something well below that.

 

[Vincent Booth]

Thanks guys, really appreciate your opinions/ suggestions. Cheers

 

[brahms]

hmmm yeah, no (front) street access or frontage is an issue, being a pretty ugly duckling is another, sort of looks cheap....like a lot of spec houses (or investor specials) do 5 years on. Major powerline view isn't a real positive either. And plenty of other places to buy in the surrounding streets, really a perfect storm for a long time on the market, and a slow rental prospect.

not a stand out option this one i'd feel...could have a lot of regrets later on.