How to buy a house in Melbourne at this time?

I’m looking to buy a PPOR this year in Melbourne.

In these times where anything is selling for much more than it’s listed for whether it’s ugly, big, small, beautiful, dull or falling apart, how do you navigate this process?

Most houses I’ve seen (3 br) have a price range like between for example $690-780k and it ends up selling for over $850 or $900k.
It’s not like you can offer $770k and think you stand a chance! These figures are examples btw.
Some sell for way more and I nor anyone I know can see the value in what has sold. Like tiny blocks of under 300 square metres with dull cheap looking units selling for a bomb!

Buying real estate is stressful enough but in these times I just don’t know how to play the game.

Any tips would be greatly appreciated.

 

The East.
Anywhere between Nunawading (although that’s highly unlikely) to Mooroolbark, Croydon, Ringwood and everything in between.
Certainly not Melbourne’s most prestigious areas like Canterbury and Brighton!

 

Even north side (north east) underquoting seems in the range of 20-30%, some more blatant than others. You need to adjust your search...

I agree that some places sell for a crazy amount when there is little potential for upside, and the yield would be minimal, but who am I to understand the market...

 

I often wonder what goes on in the minds of people who are buying these properties and whether they go on to regret it.

 

So are you saying that if a house is advertised in a range of eg. $650-$710k then I should offer $923k????!!!!

Please tell me you’re joking!!!!

 

I've been tracking a few houses as I'm considering a PPOR upgrade and houses advertised 600-660 have sold for over 850k,and I have examples of properties advertised 800-880 selling for 1.2

 

yep me too.

I’m just hoping that they settle down soon and people start to question what they’re paying for very ordinary stock!

 

Do you want the house or do you want to be waiting in two years and thinking they looked cheap now. What you think it is worth is just about irrelevant if someone else thinks it’s worth more.

 

It all comes back to your own personal risk appetite and strategy .

1. Everything is cray cray , not worth buying now.
then you have to reasonably believe that in 2/3 /4 years, price will dip and you can then buy.
Do you believe that?

2. Price reflects the market and value is determined not by what you want to pay
Jump in, score your house and just ride with it - while you still can -if it dips, do you have to sell? it's your ppor anyway