Hi Salsa!
How exciting! See if you can grab a copy of the recent results - in Sun/Mon papers and keep a bit of a log with some notes bout area/house etc to give you a feel for the prices. Depending on the agent's they all have different ranges/expectations. If you know what area you are after and are keen to move quickly you can purchase area reports - but it is hard to differentiate between the properties if you don't have access to floorplans etc...
Good Luck!
We sold about this time last year and have had some friends recently sell and they certainly got heaps more than they expected. Media seems to be saying prices are inflated, especially in first home buyers price range but really, no matter what the prices are, if you have done your research and know what you are prepared to pay and what you think a property is worth in comparison to those around then offer what you think is reasonable.
It certainly varies across the states but in Victoria, real estate agents seem to publish a low price so that they can get many people through the property so I say always expect to pay the top of what they are quoting or more.
good luck - very exciting time.
Well we bought nearly 2 years ago but I'm sure things are much the same.
Auction prices be prepared for it to go well over, we found add 10% minimum just to have a chance, sometimes would be up to 20% more.
Private sales different, I think you could put in an offer up towards the higher end of what they are asking you could get it, guess would depend on the interest.
We were dissapointed at so many auctions and found where we are now at private sale, it had been on the market for awhile and they kept having to drop the price down, we found it when it was in our price range and offered exactly what they wanted and got it, the next day there was all this other interest so we were lucky we got in first.
I think it would depend on area too, how much of a supply/ demand there is in that area, if they are having plenty of houses up and not as many buyers you may be able to negotiate a better price where if there is a high demand you may end up having to pay alot more than intitially thought.
We had this same problem! A good friend who is a real estate agent said that for example when they give you a $30,000 price gap (like 400,000 to 430,000) they are really wanting as close to that 430,000 as they can get.
If you have a limit in mind then offer less than that so you have some leverage to play with. But not to offer too low as they may think you aren't serious.
We purchased a property that was listed at 250,000 to 265,000. Offered 255,000 and it went back and forth till we settled on 260,000. We really wanted it though!!
It can depend how long it has been on the market for too. Find out what their reasons for selling are, how long settlement would be as you can gage if they are wanting a quick sale or not! Ask the agent lots of questions as they have to give you answers.
Google how to make an offer on a house and there is some great tips on websites out there!! Good Luck!!
We've had nothing but grief. Final sales in in eastern Melbourne way above what were advised.
So hard to compete with the overseas syndicates buying up around us with $50,000 bid jumps.
Hard to compete too with sellers still continuing to want so so much above the real value of properties. Looks like if we ever buy it's paupersville for us.
I bought in July. Was quoted at $350,000+. I knew as I'd been looking in the area for 18 months, that the property would sell between $420K and $435K. So I made them an offer before the auction for $410K. That put the property on the market and everyone else who received the s32 was given 72hrs to put in their highest offer. I was given the right of reply, and got the property for near enough to the bottom end of that range. It's a 3br unit on a main road.
However, three months prior, I could have bought a 3br house, in the same suburb, on an entire block, for $425K at auction.
So yes, the prices are going crazy... an almost identical 3br unit on the same road sold for $450K at auction yesterday... so I've pretty much made $30K before I even blink...
We bought july last year and our palce was advertised as 315+ we didn't want to go over 300 though and our first offer was 285 and loads of "no we want minimum 310 / 305" junk we ended up buying it for 297k and were happy. like div said, we had done our research in the area and knew what similar houses were going for which was low to mid 3's, but also knew that ours was in a fantastic spot but cosmetically was not in great shape, we got a bargain!!
Do some research into the areas you are looking at!
Im feeling rather anxious about us 'getting in'. We know our top dollar, but seems many of the places in the area we want are listed as starting at that.
Strecthbearer - we are looking in the east! I hope we dont encounter what you have
I suppose we will look round some houses and get an idea. Its very fustrating not knowing an area and what its worth etc.
What do you all think about revealing budget to agents? Like is it advisable to not let them know what your top $ is? Just thinkig about if we were to make an offer on one of the many places listed as say $320,000+, and the most we can go to is $320,000.
I do feel that there will be a house for us, I just hope it wont take too long to find it and get it.
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