Highest offer below reserve

An IP is going to auction is a few weeks and offers and interest are quite low. The EPR is $750-800,000, and this is based on similar sales for the block and the suburb. One offer so far, $720,000. For that price it's probably better to keep the place and get rent. How do people assess if a low offer is accepted?

Also, if the property passes in, are the selling costs added to future selling costs, or are they part of the FY in which they occurred?

 

The auction is a few weeks away.
One early offer to test the vendor.
A pre auction offer of $720K would indicate to me that the price range $750K to $800K is probably quite accurate.
Marg

 

How desperate are you to sell? If there is no solid interest out there day before the auction, I would consider pulling it. If however, there are a few contracts out there and the agent has confirmed that there will be more than one group attending ie serious competition, then it would be a goer.

 

I can wait to sell, no urgency. The selling REA knows this - I contacted him three years ago. Even if the price goes down, the longer I wait the more rental income I get. The $720,000 offer is too low. I've come this far and interest in the property is unclear, may as well go to auction. There may be more buyers on the auction day.

Are selling costs included in the tax return for that FY or when the property is sold?

 

I wouldn't trust anyone on here for tax advice... Ask your tax accountant...

Yes there are tax accountants on here which I would trust but they don't know my situation and heck I pay my tax accountant so he should (and does) answer my questions throughout the year - after all I pay him for it and also stops issues before they arise which means less work for him .

 

When I went to auction in Melbourne I got a couple of low offers. It was just investors testing the waters. From memory the place sold for $35k more then the pre-auction highest offer.

 

I'm comfortable getting advice here on a wide range of property matters, including tax. I'm not treating anything as gospel, but it's invariably accurate and if nothing else informative and a good starting place to get more details.

I'll have to think about pre-auction offers, but will most probably go to auction. Selling for $755,000 is lower than I would like and means less CGT.