Ok - we are hoping to buy soon(1st home buyers) but when I look at the prices listed on property websites Im not sure what sort of offer we should make. I have heard that prices are inflated currently, but also to expect to pay maybe another $20,000 on top of what the advertised price is.
So my question is for anyone who purchased property in Melbourne over this year is when you made an offer was it for the advertised amount (and these can vary - some are listed as broadly as for example $400,000 - $450,000) or less or more, and then was the agreed price below, about same or above asking/suggested price?
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...
anyone who brought a house in VIC this year?
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