Buying first home

hi guys
We live in Liverpool area Sydney and we have to move because owner where we renting is selling the property, we are looking to buy in the area of Campbelltown and currently found a house with four sizeable bedrooms in St. Helens Park ( 25-30) years old the age of the property, owner is asking for 560-610 it’s been on the market for about three weeks and price been reduced from 580 to 560. We like but not so much, the price range of 500000 to 570000 is what we can offered for repayments. The house is like bush land setting there is a big park or bush behind it.
How do we know the house is worth that’s much and why do you think it didn’t sell. Price in area starting from 580 and up.

Any advice would help us so much


Thank you

 

Without knowing the market it may not have sold for a number of reasons. Are there other properties which are comparable to this one that have recently sold? The real estate agent may have a list of comparable properties or be able to help put something together. Keep in mind that Sydney (in general) has slowed down a little in recent times.

Did it fail to sell at an auction or did they just drop the price on market? It may indicate a motivated vendor and so it may be worth putting in a low offer to see if you can land a bargain. Also a horrible time of year to sell so it is all stacking up in your favour....

 

Thank you so much for your time, will definitely ask the real estate about why price dropped ...etc because we rang and said if we can have another look, price in the area a bit higher than $560000.
Thank you so much for your time and have a Merry Christmas xx

 

Thank you for your time and you info

 

If you are really interested, I'd suggest you don't let the agent know this. Just tell them you are considering many properties, and this is just one of them. You can say that you are also considering property XYZ down the road (listed with a different agency!), which is superior in regards to landsize/layout/streetscape/orientation/carparking/highside of street/outlook/bathrooms/bedroom sizes/privacy/noise levels/location etc...

 

Thank you so much, great advice xoxo

 

Check out the zoning for the area. The price seems to be spot on for a newer build. Not familiar with the area but if the price is the same as a new build, that's a reason it may not be sold. The market may just be flat there. Cursory research shows good demand for the area; steady volume of sales and price for the last twelve months. If it's near the bush may be costlier to insure and rebuild/ do additions due to high fire danger zoning. Wiring is due to be updated too (if not just done). Houses start to cost at 25-30 years old. Nothing wrong with older properties but why buy for the same as new?

 

See the BAL rating on the house, might be able to get the price cheaper if it doesn't comply

 

since its your first home buy, it will be quite hard for you to negotiate well with the agent. Best if you can get someone more experienced to help you out.

Before you even start talking price, get your finance pre-approved first,

then ask the agent for a contract of sale and put in a written offer of 532k(5% less than the new lower 560k price.) subject to finance and B&P inspection 14days and 60 days settlement. Do this at the beginning of the week is best. Just say old house needs work/repairs/upgrades and market going down now.

Since no one else is buying and your offer is within 5% of asking, agent will be very keen to close the deal. Resist all the agent's efforts to get a price increase out of you until you get a signed counteroffer from the vendors.

You should then be able to increase your offer slightly and get to a number both you and the vendors are happy with.

good luck.

 

Thank you will check it out xoxo

 

Thank you so much
Really good info, I can’t thank each of you enough you helping us so much

 

Thank you for you info really helping so much xoxo

o

 

Hi Soso,

I wouldn't be worried about the price drop at this time of year.
Other buyers are often busy and distracted with social events at this time of year so they may not have had much interest yet.
Which I think makes it the perfect time of year to buy
Use the information as suggested above and stay confident

 

Thank you hun for your time , appreciate it xoxo

 

@Soso

As others have said, get an RP data report. Also.. look at recent sales on realestate.com.au for comparables. Another sites to look at is onthehouse for an indication of the value.

I would also be checking for bush fire hazard given the location.

It pays to find the vendor motivations to see if you have room to negotiate.

 

+1 for this. Never let them know how interested you are in the property!

Three weeks with a slight price drop might be a motivated seller or a lazy agent. Try and find out the sellers motivation for selling.

 

Nooooooooooooooooooooo !
That is bad advice, IMO.

Getting yourself pre-approved means two hits. All it does is adds an inquiry into your credit file.
Please get in touch with any of the mortgage brokers here, for eg @Rolf Latham or @Jess Peletier or any others and they should be able to tell you almost accurately as to how much you'd be eligible for. In my opinion any mortgage broker worth their salt is usually able to give accurate advice on loan capability.

And, from what I read, Sydney is slowly turning into a buyers market. No harm in renting for a while before you find the property you really like.

 

Thank you

 

Thank you hun
Xoxo