Misleading prices?

Discussion in 'The Buying & Selling Process' started by DOGGO FAN, 10th Feb, 2019.

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  1. DOGGO FAN

    DOGGO FAN New Member

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    Location:
    Nsw
    So went to an open house last weekend, good location, needs some work but perfectly fine. Its listed as 750 to 800 which is kind of on the high side considering other similar houses in the area with less work needed and bigger living spaces going for the same. So I thought I was being pretty generous in offering 750.

    I got told no it was too low would I raise my offer. If that's too low then why have the property listed at that? Surely they would be getting a lot of low ball offers well below that range.

    I don't care they said no I'm just wondering if maybe I need to lower the range of houses I'm looking at if they won't accept in the range offers

    Edit: sorry located nsw
     
  2. datto

    datto Well-Known Member

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    I think it's about time Fair Trading clamped down on these shenanigans.
     
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  3. TMNT

    TMNT Well-Known Member

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    Location:
    Melbourne
    years ago there was a property that was advertised for $401-$410k,
    so I offered $400k,

    got a rude reply saying "please make an offer within the price range"

    so I replied "$401k!"

    I didnt get a reply :)
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Offer what you're prepared to pay/what it's worth not the asking price.

    If your due diligence is telling you it is worth something less than the range, so be it. The agent is under at obligation to present all offers to the owner, both low and high. They could simply say that they've had a few offers below the range at well.
     
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  5. willair

    willair Well-Known Member Premium Member

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    Just learn how to say""NO"",and thankyou and walk away if you gut is telling you something most times your gut is right..Sales people only get upset when it's played backwards on them as opposed to the other way around..
     
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  6. Propertunity

    Propertunity Well-Known Member

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    Location:
    NSW
    Leaving aside the value of the property for the moment, in NSW a selling agent is permitted to advertise a guide price as long as the upper end of the guide is not more than 10% above the lower end of the guide. So in this case it would be acceptable to Fair Trading for the agent to have advertised a guide of $750 - $825K.

    If a seller wants to sell an item, say a cheap car, and puts a range of $8,000 - $10,000 on it, then you wouldn’t expect the seller to jump at an offer of $8,000 the first week it was advertised would you?

    Agents have data to show that if they can get a buyer to fall in love with a property then that buyer will pay up to 20% over their budget. So a low number on an advertised price guide is designed to get people into an inspection for that reason.

    In this case the agent probably “bought “ the listing but has 90 days to condition the vendor down as well as the buyers up. Just play the game and don’t offer more than your research tells you it’s worth.
     
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