First post here, but i have been a big reader for months!
My partner and I are currently in the position to buy our first IP. We've been watching the market, looking at houses in our area for the past 6 or so months.
This one house attracts our interest. It has potential for a mini reno – and will improve the house so much. Painting, new floor coverings and a bit of work to the bathroom… New kitchen if we were to ever live in there!!
Since we've been watching properties, it's dropped twice in price and now is at $179,000. The rent would be about $200 per week, maybe $220 given that it's a pretty big block of land.
The real estate lady is lovely, not pushy at all – but has called today and said that the owner is VERY VERY VERY keen to sell and that if we're serious, we should put in an offer, because she is VERY VERY keen to sell! Sounded like a subtle hint that shes open to offers and keen to sell!!!
A house in the same suburb, in better condition – almost same size of land, with less work to do – the only major difference being that the auction house had smaller bedrooms than the house we're looking at – went for auction last weekend. Didn't meet the reserve, and the property was passed in with the highest bid of $140,000. The same person put in a $150,000 bid after the auction – unsure if anything eventuated…
Given that sales are so slow in this area at the moment, and given the local sale history and auctions – what kind of offer does anyone think we should make?
Thanks in advance
Hi there
Welcome aboard.
Not sure if I’m reading this right but did a better property recieve a max bid of $150k?
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Jamie M wrote:Hi there Welcome aboard. Not sure if I'm reading this right but did a better property recieve a max bid of $150k? Cheers JamieHi Jamie
It most certainy did – that house went to auction. This one is just up for sale… It's a very dead market in this area at the moment!
Rebecca
could have been a vendors bid at the auction which dosent really mean anything.
Put it back to the agent and ask her what the seller will take ?
If that dosent get anywhere then
I would offer $125,000, put your offer in writing with a 48 hour expiry date, with your conditions ( subject to…. )
Make it clear to the agent that this is your first and final offer and if its not accepted you will be purchasing elsewhere
I don’t buy unless i can get a massive discount
Hi Becshan,
Sounds like the poor auction result gives you a good 'market indicator' – use this as your offer price starting point and justification for any negotiations moving forward.
Make sure you organise your conditions thoughtfully and keep their timelines short. As per RP's comments 48 hours for acceptance would be suitable.
Nothing ventured – nothing gained.
As an aside – have you done good research on your local area to make sure the investment will achieve your investment goals. Sometimes investors decisions can be coloured by the 'local' factor. Remember this is a business decision you are making.
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