Best way to get 'under market value'

Get a high valuation Negotiate hard from there

 

thanks

 

Fully agree. The best way to establish rapport and relationship as a buyer with an agent. Good agents should be determining this from first contact as you said.

 

Reading this thread with interest
It seems like you have to be prepared to lose the deal in order to buy at a discount to market
Fear of losing the deal seems like a no no

 

Cmon Beano, you would know that, are you setting some of us up for something ?

 

I think the best (week after week) is to just keep on searching, target 3-5 suburbs during inspections. Missing a week could mean missing out. I recently won in auction for a place 13km from CBD, 600ish sqm - large block by the distance to CBD, 15 minutes walk to a university, 15 minutes to major shopping center, renovated, 5 bed 2 bath place for 500Kish. The place i believe was owned by a environmental scientist so yeah full solar returning $500 per quater, 6 water tanks, 4ACs, outdoor spa new kitchen, floorboards and a hosue extension with vegie garden.

The best thing about it is prior to auction and purchasing, i was reading on the council and planning updates that it was one of the areas be looked to be rezoned although i was more thinking abt dual occupancy blocks only. the s32 reflected the old zone and hence in btw the auction period campaign, it basically become "High Growth Zone" - which means 13.5 meters height (4 storeys) and able to get plans/permits for apartments. Just 2 houses out and i would have been out of the " high growth zone". got it revalued at approx 100K more than what i purchased for. i also kept contact regularly with the agents and found that the place opposite me was for sale, a friend of mine (also on property chat) in the end secured that same place within that growth zone within the 500-600K range. i do believe i got in under market value due to the sudden rezone and also the week i won in auction had so many places for sale at the "same time" so many buyers i believe were segregated btw properties

 

sorry but that simply isn't as black and white as you are claiming, ive experienced it twice myself in the last 10 months or so in a terrible market for 2 properties I was involved in.


recent one was block value old house in blue chip suburb in perth, mid 1m. purchased in December, settled end Jan, cash unconditional serious offer in March for 25% more than purchase price.

the market in the meantime has done zero and top end is stuffed yet this was a big amount above purchase and clearly a case of purchasing below market.

 

@sanj quite a motivated vendor?

 

did you sell it in march?

 

it wasnt my property. they didnt because they're building a family home on there.

i was hired to source/negotiate purchase, come up with a way to make whole project work under a certain budget and interview architects to find the right fit for this particular job.

Architect was appointed in Feb,plans are in with council now so pretty good turnaround on what is going to be a great home.

 

combination of factors. motivated yes but not for purely financial reasons. house was well and truly paid off, owner had been there decades. being an emotional sale they wanted clean, no conditions and we also allowed them a lot of flexibility in terms of when they wanted to settle. also allowed them 4 weeks rent free after settlement.

Most importantly though it was listed on internet around 2pm Friday with home open 1230pm or so saturday. agent did not want to show anyone through on friday but after afew tried managed to twist his arm. put offer in 8pm on friday, being a bit above the "from" asking price. Explained it was all the conditions they wanted and more and above asking price and so we wouldnt be participating in bidding war and offer would expire 1 hour before the home open the next day. then offered owners 4 weeks rent free if they agreed to the offer that night vs next morning.

knowing agent had opens from 10 or 1030am meant that it was near impossible for anyone else ot have a look at property prior to our offer expiring. owners came back within the hour saying we had a deal. ultimately for them they got above asking, unconditional sale within 6 hours or so of listing, flexibility of settlement to take any stress/pressure off them moving out and also needing cash for their new purchase and then 4 weeks rent free in the event their new place wasnt ready yet or whatever. for them it was a no brainer.

what the agent and owners perhaps had not grasped is that it was a cracking site. opportunity to put 2 large homes on there or having a >1000sqm single res site. 1 house from river. nice part of this blue chip suburb. perfect orientation, perfect shape, flat block, good views from future upper floor. it's now not all that easy to find all of them in this particular suburb as many are pretty sloped close to the water, meaning much or expensive to build or many have been chopped into 2 in the past or are on the other less preferable side of the road.

in luxury market the slightest things can make a big difference in terms of how wide the appeal is.

agent still had the homeoopen the next day and there were a fair few people there, including some saying they would have happily paid $X which was 100k above what we did and asking him to present the offers etc.

 

What a fantastic result and strategic play you manoeuvred! I love it. Also buying so well like you did on the way in reduces the overall risk of the project

The owner you bought for must be over the bloody moon.. I know I would be.

Any rough idea what returns the owner would make if he develops both homes?

 

Why not use onthehouse.com.au? Isn't that good enough?

 

thanks, yeah they were pretty happy. was the 4th property we had looked at strongly and 3rd we put offers on but glad we ended up with this one.

havent run the numbers tbh as that was of no interest to him and his wife, they wanted to build on the full block.

 

Good stuff thanks mate.