Hi guys,
I was just wondering if I should put in an offer on a 1.3 – 1.45 mil property (tear down). What are the pro's and cons?
On one hand, I keep thinking what have i got to lose…but on the other hand maybe I am creating more demand for the property and they are likely to have the auction base price higher on the day?
Suggestions?
its a tough one we just bought a property for a couple of grand less than i was going to offer , so waiting till the day worked for me !
i wasnt in love with the place and wanted to see what else was in the paper
a lot depends on the weather and the medias latest beat up
at the end of the day you have to do your sums and work out what it is worth to you
and be pretty sure about that
i enjoyed the auction experience ( which was a surprise ! )
good luckIt depends upon how much you know about the site and if there is alot of interest (how many contracts are out)? If there are only a couple a week or two out and no real interest, throw in your offer & see how it goes. If it doesn't fly, there is always auction day (your offer may be higher than where the auction gets to on the day).
Showing to much interest will only push the agent to auction it.
Agent will inform client of interest and they will take their chances , with the fall back to sell after auction to people like yourself.Id be telling agent you are interested in two properties and have until the end of week to decide for some BS reason and put a offer to them.
Or even tell them you put a contract on another property and have so many days left before being able to pull out and need and answer NOW.Thanks for the advice guys, I think i'll just wait until auction for this one.
Fantastic forum!!
I heard that if you put in an offer before auction (that is above the advertised price) the agent will need to re-advertise or notified interested parties of a new minimum range.
I see that this could be useful if the agent has underquoted the property and it is attracting a lot of interest due to the low advertised price. If you submit an offer before auction (above the advertised price) it should force the advertised price up and therefore you should have less interest to compete with at auction (if they don't accept your offer before).
Can anyone verify that this is true? Are agents bound by these rules from the REA, REIV or some other laws? Would be great to pin point which rule / authority governs this and who we can "dob" the agent into if they break the rule.
thanks,
JmanNot sure about other States, however in Queensland the answer to this question is found here – much to the dislike of Buyers who continually want us to break the law.
‘574D Real estate agent not to indicate reserve price to
potential buyer
‘(1) This section applies if a person wanting to buy residential
property (potential buyer) asks a real estate agent for
information about the price at which residential property that
is to be, or may be, offered for sale, whether or not by auction,
(offered property) is likely to be sold or is, or is likely to be,
offered for sale.
‘(2) If the offered property is to be offered for sale by auction, the
real estate agent must not disclose to the potential buyer—
(a) whether the seller has set a reserve price for the offered
property; or
(b) the reserve price set for the offered property; or
(c) an amount the real estate agent considers is a price
likely to result in a successful or acceptable bid for the
offered property.
Maximum penalty—540 penalty units.
‘(3) If the property is not to be offered for sale by auction and the
seller has instructed the real estate agent not to disclose the
price at which the seller is willing to sell the offered property,
the real estate agent must not disclose to the potential buyer
the price at which the seller is willing to sell the offered
property.
Maximum penalty—540 penalty units.
‘(4) However, the real estate agent does not commit an offence
against subsection (2) or (3) if, on the seller’s written
instructions, the real estate agent gives the potential buyer a
copy of whichever of the following was given to the seller—
(a) the comparative market analysis for the offered
property;
(b) the written explanation showing how the real estate
agent decided the market value of the property.
For those who wish to learn a little more about the Act you can read the full story here. http://www.legislation.qld.gov.au/LEGISLTN/ACTS/2006/06AC010.pdf
You must be logged in to reply to this topic. If you don't have an account, you can register here.
