Hi everyone,
Based on your experiences, if a property is listed for sale at say 300k +, what does it really mean the agent/vendor is trying to get? And what price do they usually sell for? Just wondering because so many advertisements seem to have the + next to a figure.
thanks,
Christian.
Christian, You need to keep track of each agent and what a property sells for so you know what 300,000 + really means to a particular agent. Especially if reserve prices at auction .
A Better approach would be to know what the median price for property is in the suburb and what similair houses sell for in suburb.
Median prices are published in API magazine each month.
By knowing the prices you can offer what you think the property is worth with the attitude to walk away if the price is too expensive.Duckster Financial Services
http://www.ducksterfinancial.com
Helping to make the great Australian Dream come true !Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Just ring them and ask, “how much would the owners take”. It will give you an idea of the asking price then.
Doesn’t mean they won’t take less though. I bought a place that was advertised offers over $520K, but paid much less.
Like Duckster said, each agent has their own idea of how much over the base figure it will go.
One local agent is so out of wack, that when we see his price guide of $400+ we assume it will go for at least $450. A friend was very keen on a house he had for sale – offers $300K+. She put in an offer of $345K based on the fact that a previous offer of $330K had been rejected.
Turns out the lady of the house would not sign anything under $360K.
It just makes a mockery of things, and wastes peoples time if they are not in the market at the higher price.
To me, seeing a guide of $300K+, my immediate thought is that $300K will buy the house.
Wylie
This is an old real estate agent’s trick.
What is actually going on with these $xxx+ offers is the real estate agent has initially quoted the Vendor a too high sale price to ‘buy’ the listing, then cons the Vendor into advertising the property this way, telling the Vendor this sales strategy works (and it does – for the agent).
This is so that the agent then gets (hopefully) a lot of interest at the low figure advertised.
He/she then goes back to the Vendor and tries to condition the Vendor down on the price, using all the ‘interest’ at the lower end of the price range to justify to the vendor that ‘this is what the market is telling us’ and that you had better drop the price down.
Then, in the face of all the low offers, the Vendor drops the sale price down to what the property is really worth, not what the agent originally quoted the property would sell at.
The agent then gets the sale.
The same tactic is used when the agents con the Vendor into advertising the property with a price range,
eg; “buyers’ price range: $250k – $300k”.The Vendor is thinking $300k, but the agent knows they will get mostly closer to $250k interest or less as all the $250k buyers inquire, but only a handful of the $300k buyers inquire – they are usually looking at the $350k price range properties, trying to get them for $300k!
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
I know it is common to see this in Melbourne (at least where I live), and I have been told by many agents that the + means 10%. So a $300K+ house would put it in the region of $330K.
We found the + sign very confusing when we bought our first home.
Kelly
hi
common trick to squeeeeeeze every penny out of you if its private sale most likely 10% auction could be differant from personal experiance, went to auction about 12mnths ago house was advertised for 500k+ sold for 670K but hey does not mean you cant offer 290K regards crispy[biggrin]As Kelly stated, in Melbourne it’s supposed to be +10 % but having studied my local market for the last 5 years I know that it means more like an additional $50K – $70K
Two weeks ago I approached an agent from the biggest REA in the area and asked “how much will this property go for” The quoting price was $380K plus. The agent replied with a smarmy “we’re getting an indication that it’ll be low $400K.”
Knowing full well that the property would fetch at least $450K I then asked “how long have you been an agent because you don’t seem to know much about the values around this suburb”.
Their reply wasn’t very nice…but it was interesting to see that the property sold for $472K.
It pays to study the market.
This annoys me to no end and should be made illegal!!! Good trick of making people attached to the property because they think they can afford it, lots of people turn up thinking the same and what do you know a nice little bidding war begins. Best trick I have now learnt is to just work out for yourself what you think its worth and what it will sell for and take it from there-like others have said its quite common for places advertising $300+ to go upwards of $370k[grrr]
Like L.A Aussie said the agent is playing his game. He needs time to condition the owner ‘down’ in price and he will be secretly encouraging some uneducated purchaser to place a rediculously low bid to the vendor in order to encourage the vendor down in price.
Have a look around the area and see what previous properties have sold for (you can pay for this info on some websites) and what current houses are being presented for. The quickest way to work out the worth of the property (if you are really serious about it as it costs a few bob) is to get a valuation done on it (part of your due diligence anyway), and that is not one by a REA but one done by an independant agency. They will often support their valuation by including properties in the surrounding area that have recently sold and comparing the prices and features with the one you are valuing.
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