- no ideaMember@no-ideaJoin Date: 2013Post Count: 1
Hey all hope you're having a stress free day! I've just found this site and hoped you guys might help me out I'm a first time buyer and have seen a house I'm interested in but it's for sale for offers over $xxxxxx. It's been on the market for over 7 months now so unsure if the price has been lowered etc but how much should I offer above the price? is it a set % above? will the agent refuse to submit my offer if it was a tad below?
Any advice would be great many thanksDWolfeParticipant@dwolfeJoin Date: 2009Post Count: 1,253
Hi no idea and welcome!
When looking at this property, have you looked at other sales prices in the area?
I'm not talking about realestate.com.au asking prices, but what the properties in the surrounding streets, and that are similar have sold for.
The reason I ask is that the main thing you need to do is research before you buy anything. Even if it looks like a good deal it mightt end up costing you a lot of money in the long run because you didn't know what you were buying.
So other questions you might ask are……
How long do properties take to sell in that area?
What is the condition of the house?
what restrictions are there on either the property of the use of the land?
Is there termite or structural damage?
Is there are feud between family members preventing a sale (seen it before)?
Is the agent rubbish?
There are heaps of questions you need to find the answers to before you run out an put an offer in.
Once you put an offer in writing the agent must submit it to the vendor (that is true for here in Vic, not sure what state you are in). The vendor can either accept it, ignore it or make a counter offer.
Hope this helps.
Drusty05Member@rusty05Join Date: 2011Post Count: 94
Well said Dwolfe,
I was only going to add that to me the Offers Over always screams "I really want more but this is the lowest I will happily accept." Doesn't mean it's worth that, and not sure if i'd be making offers above that figure but I know people do. It all depends on the true value of the property and what the numbers look like for you, not what the vendor wants!Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Awesome post from D Wolfe.
7 months on the market is a long time – unless they're not strongly motivated to sell, you should be in a good negotiating position.
I would disregard the asking price and work off the figure that you think it's worth – which should be based on a comprehensive due diligence process, which D touched on above.
JamieKara47Participant@kara47Join Date: 2012Post Count: 28
Have seen one locally "offers over $200,000" sell for $198,000.
KaraJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Yeah it's not uncommon.
Some vendors have unrealistic expectations. As a broker I see it a fair bit – properties that have been on the market for a while at an "offers over" whatever price end up selling for less than the baseline price they were after.
JamieMade_ManParticipant@made_manJoin Date: 2013Post Count: 35
just like Jamie said. Crunch some numbers and only offer what you think its worth, even if its lower than the asking. You may be the lucky 100 offer that makes them realise they are asking more then they are going to get.
I have had offers accepted that have been under the offers above guide price.