Negotiate the price when you buy the property, any suggestions?

That was just my first offer... the one that made the REA yell! Final negotiated price was $465,000. Still way off the first asking price of $549,000, but there are reasons for that. It was overpriced in the first place. The house was barely habitable, it was tenanted to a dog breeder who was breeding dogs in the house. The yard was full of rubbish and there was a shed (that was junk) and was full of junk. There was also a lock up garage, workshop stacked to the roof with junk. It took 13 skips to clean the place out. I actually went to three open for inspections, so I could see most buyers did not make it past the lounge. It was grim when I bought is and having been on the market for over 2 years, I was always going to get it for a "bargain" price

 

Owner occupier. It means buying a house for yourself to live in. Some people will fall in love with a house they want to buy for themselves and pay more for it. It has been suggested that people don't do this with investment properties.

 

After 30 offers I got zero accepted.
Usually they will counter you, and mine were very lowball

Even if you get 2, usually with 48 hour Expiry is ok.

If not, then finance clause gets you out since Bank won't approve lending on both at once.

 

Owner occupy

 

It means 'I made a big mistake and I gotta wear it'.

 

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How do you know it has been on the market for 2 yrs?

 

Thanks

 

Thanks

 

On average, how low you put your offer for? Down 20% 10%?

 

It should never be a percent each property its own deal

 

If I saw a property advertised for 200k in double bay id pay asking price. If it was a unit in Logan for a million id want a discount

 

Because I found it 2 years before I bought it.

I knew it was overpriced as soon as I saw it, so I put in on my watch list. From memory, there were three price reductions before I put in my first offer.

 

+1 did that on a site too - she looks, watches, waits.....I go in and shoot off the kneecaps.

 

Awwww, that's cute. You poor thing, stay the way you are, don't get tainted by the nasty deal makers here.

 

You can check on places like Pricefinder (usually about $175/mth, you can get 3 months access free with an Australian Property Investor magazine subscription), but you can also see it on www.onthehouse.com.au

 

yeah @Azazel you nasty deal maker you

 

It's not based on their asking price. If they put a 1br unit up for $10m and you offered $8m and got it, you're still screwed

Do your own estimate of value by knowing your market go to 50-100 open houses. Use tools like pricefinder and rp data. You can create rough valuations.

If you think you can get a bank valuation a good chunk % higher than your offer price based on good research then you're ok.

Sometimes a good below market offer is asking price, when everyone else is offering higher! Eg Sydney sometimes.

Other times they are priced too high. Eg one in Adelaide was initially priced 185k. Over time reduced and a forum member got it for 147k.

Dont trust the price the agent puts is what I'm saying.

 

I don't trust a single word the agent says.

 

Hehe, some people need to be shielded from this side of the business. Maybe we could create someone to work between the buyer and the agent. We could call them like, I don't know, a buyers assistant, or something.

 

I find pricefinder very useful.