Hi – forgive me, this topic has probably been thrashed to death but I couldn't find anything when looking just now. Also, fresh and tailored advice is always better!
I'm currently looking in Perth for my family home and the suburbs that I'm interested in (near my kids' school) are all going crazy. In one of the suburbs that agents regularly use "Set date sale" rather than a listing price (Craigie for anyone in Perth), I saw a place that matched our criteria exactly but it was $70k overpriced. And this place had already had one offer fall through based on the finance and and a second offer in swing. Clearly the bank agreed with me that the house was over valued and yet these places are still selling like hot cakes.
I'd like to know a) if it is reasonable to expect to find a place selling at a 10-20% market discount in such conditions. Conservatively I'd prefer 20% discount to the 12 month average, however I'm not sure if this is realistic. I'm dead set against overpaying though just to get into the market at present, and b) if it is reasonable then what are the techniques used to find these discounted houses? I started cold calling agents last week to spruik my case but most of them just say they'll add me to a mailing list. Other than that it's reiwa.com and realestate.com but this seems like such a mundane way of doing things.
Any advice about discounts people have found in their travels would be welcome. I'm looking for an almost derelict renovator by the way, so I think the 20% discount is reasonable.
Thanks a lot,
Tom.
tommytucker wrote:I'm looking for an almost derelict renovator by the way, so I think the 20% discount is reasonable.
As I'm sure you are aware Tom its a sellers market and with listings below 9000 in Perth (12,000 is considered normal) it would be a big ask to get a 20% discount!
I was going to suggest what you concluded with in regards to a run down property you could renovate.
You could find houses that fit this description and approach direct to see if they are interested in selling either face to face or a flyer in the letterbox.
If the property is uninhabited (not sure if there are any in Cragie?) you could call the council to see who owns it. If they are not forthcoming you could ask for the title particulars and do a title search via Landgate and approach the owner that way.
http://www.landgate.wa.gov.au/corporate.nsf/web/Titles+and+Records
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
tommytucker wrote:I'd like to know a) if it is reasonable to expect to find a place selling at a 10-20% market discount in such conditions. Conservatively I'd prefer 20% discount to the 12 month average, however I'm not sure if this is realistic
Hi Tom
No – I don't think it's realistic. Not in a market where's there's plenty of competition. In some market at the moment – buyers are offering more than asking price!
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]
tommytucker wrote:I'd like to know a) if it is reasonable to expect to find a place selling at a 10-20% market discount in such conditions. Conservatively I'd prefer 20% discount to the 12 month average, however I'm not sure if this is realistic. I'm dead set against overpaying though just to get into the market at present, and b) if it is reasonable then what are the techniques used to find these discounted houses?
Tom.
I am not sure what you mean by 10-20% market discount?
Do you mean you want to buy the property for 10-20% less than the asking price or you want to find a property in poor condition where the asking price is 10-20 less than the market price for same property in good condition?
Modernity Investing
Email MeCommon occurrence in Perth ATM with multiple offers on properties.
In saying that I went to a PD day with NAB and the speaker from RP Data provided the latest statistics that evidence that the market is showing signs of cooling off?
– See more at: https://www.propertyinvesting.com/comment/reply/4349055/293226?quote=1#sthash.pbQ5tWpy.dpuf
Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone MePerth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]
Thanks guys.
I'm talking a discount compared to a similar house in a good condition. The discount will be due to the condition of the property and/or due to the situation of the seller hopefully.
Hi Tommy
Just go into negations armed with as much info as possible. Point out the comparable property and it's condition relative to the subject property. At the end of the day, you've got to work out a price that you're comfortable with paying and base negotiation around that. If it's accepted – excellent. If it's not – move on to the next one. Another deal will pop up – they always do.
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]
Cheers, that's the aim.
I spoke to a guy out of Queensland once, a salesman no less, however what he said rings true – the deal of a lifetime comes along every week.
tommytucker wrote:Cheers, that's the aim.I spoke to a guy out of Queensland once, a salesman no less, however what he said rings true – the deal of a lifetime comes along every week.
I kind of agree,
Great deals come along every week, deals of a lifetime come around about as often as: Once in a Lifetime, as the late great Kerry Packer said "You only get one Alan Bond deal in your life, and I've had mine". That was when Kerry sold Chanel Nine to Alan Bond for $1b and bought it back for $250m when it was worth $500m.
Modernity Investing
Email Metommytucker wrote:the deal of a lifetime comes along every week.Which is actually BS. Good deals come along all the time if you're looking. The deal of a lifetime sets you up for the rest of your natural and they are rare events.
The burb you are looking in has an average growth rate over the last 5 of 2.08%. It did all its growing in the preceding 5. It's a relatively good suburb location wise, Uni, large shopping centers, rail, freeway, beaches, schools etc. All within a five minute drive.
Perth is cooking off for no real reason other than a supply shortage. The risk is economic for WA as a whole but I don't see it falling into the sea anytime soon. It's times like these you need to keep your head on. Any big growth is likely to be short and sharp in a few select areas. Mid 2014 could prove to be the point where WA starts to do a Melbourne. Business in WA is doing it tough and a rising dollar isn't going to help WA's cause given it lives mainly on exports and servicing the resource sector.
Resource sector momentum built up over the last 5 years is keeping things going but that momentum will cease about mid 2014. What's not know yet is will there be a vacuum after wards that pulls prices back. My guess is that norther coastal suburbs will fair better than most but your likely to see them stay around trend for some time.
Hey Tommy,
There is a property search tool called Ripe House – RipeHouse.com.au
It allows you to do suburb analysis and find discounted properties. It also shows how long these properties have been on the market for.
The problem with a sellers market is that properties that have been on the market for a long time are generally only there because they are overpriced, not because the market isn't buying.
I guess your best bet is to find a property that:
a) no one wants because it is in a bad condition
b) The seller needs certain terms more so than a high price point
If you can settle in 14 days instead of 60 it might be better for them than a buyer offering more money but the longer settlement date.
Ryan McLean | On Property
http://onproperty.com.au
Email MeI watched a couple of Webinars for http://www.realestateinvestar.com.au
it cost, however I have seen cheap demo periods. a few bucks for a week or month.
My wingman uses Advanced Price Finder or something like that.
Adrian Cahill | AdrianCahill.com Personal Development Expert
http://adriancahill.com/from-investor-to-coach/
Email Me | Phone MeHere since 2002, however things have evolved over the years.
I bit the bullet and bought a bottom of the market reno job in Wanneroo. It was inside market prices so no discount to the average but still very reasonable. I've seen one or two places going cheaper in the same suburb but they were sold before I could even check what the agents phone number was.
Thanks for the comments people.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
