Join Australia's most dynamic and respected property investment community

PPOR purchase, pre-auction offer or holding off?

Discussion in 'The Buying & Selling Process' started by ExcuseMyFrench, 2nd Jun, 2016.

Tags:
  1. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    Hi all,

    We are looking at making our first property purchase (inner Melbourne) ever that would become our PPOR. Emotions are running high!

    I am very exciting as tonight came out for sale a property that ticks all the boxes and well within our price range. It's advertised for 500-550k and we have conditional approval for 850k.

    It is a townhouse with it's own title and the second townhouse is going for auction on the same day, right after the other one.

    As it would be our PPOR, we are more after securing the property rather than getting a bargain so in that scenario would you make a pre-auction offer or would you wait for the auction?
    Obviously we need to get P&B inspection underway etc.

    Also where is the best place to find comparable sales data in order to make a fair offer? I can't find much properties sold in the suburb in the last 3months...

    Thanks!
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,972
    Location:
    Sydney
    RP data
     
    ExcuseMyFrench likes this.
  3. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    rpdata.com.au?

    I'm trying to access this but it's either down or not the right website
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,972
    Location:
    Sydney
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,972
    Location:
    Sydney
    You might not be able to buy individual reports - maybe need to ask your broker to send you.
     
  6. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    Thanks @Terry_w I will contact my broker.
     
  7. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    Just got the reports. They give a price range of $430,000 - $560,000.
    However in their list of latest comparable sale in the area, the cheapest went for $770k. And it was a 2 bedrooms renovated (we're looking at 3 bedrooms unrenovated).

    Not very useful. :(
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,972
    Location:
    Sydney
    Sometimes the RP data reports can be wildly out - it is just computer generated
     
  9. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,546
    Location:
    Melbourne, Australia
    You can put in an offer before hand but it would need to be a good offer and unco (STB&P will likely not fly).

    Also the closer you get towards the auction the less likely they will look at offers unless they have no interest.
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,972
    Location:
    Sydney
    unco means 'poo' in Japanese (unko)
     
  11. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    Properties just have been advertised, yet to have the first open... So very early in the campaign.

    My plan was to get a B&P inspection done early next week then put an offer in mid week. It will be a couple of days after the open so enough incentive to accept it?
    It would be unconditional too.

    Just not sure how to come up with a good and faire value
     
  12. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    516
    Location:
    Sydney
    RPData and APMPricefinder auto generated estimate reports are next to useless- you're better off relying on your local knowledge of recent sales and getting a radial search done by someone with access. Example- we just ran one for a client looking at a $5m property and it turned up with an estimate of $2-2.2m LOL :D
    Good luck with your auction!
     
    ExcuseMyFrench likes this.
  13. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    392
    Location:
    Sydney
    Must be a reason why they are both being sold on the same night.

    They might be thinking the two together is more valuable so are looking for offers on that basis.
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,972
    Location:
    Sydney
    An RP data report from 3 days ago showed $2.1mil but sold last night for $2.55mil

    Anything can happen with auctions as well as the data being skewed
     
    ExcuseMyFrench likes this.
  15. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    Def hoping for some developers wanting to snatch the 400 sqm block...
     
  16. S.T

    S.T Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    428
    Location:
    I'm not selling anything
    Offer to buy them both pre auction!

    Just make sure you talk to the agent and see if they're willing to look at a pre-auction offer first of all, see what the motivation is for selling them both. Sometimes it can backfire if the offer is not strong, as it helps them set the reserve - but if they're motivated to sell, and winter is usually the worst time in Melbourne, then they may just go for the pre-auction offer.
     
  17. ExcuseMyFrench

    ExcuseMyFrench Active Member

    Joined:
    24th May, 2016
    Posts:
    41
    Location:
    Melbourne
    @S.T i wish we could buy them both! :)

    Although a friend might be interested in buying one so then we'd put an offer for both.

    I see what you mean about the reserve though. and I'm sure if they do consider taking the offer they'd contact all interested parties to see if anyone wants to up the bid
     
  18. S.T

    S.T Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    428
    Location:
    I'm not selling anything
    You might get both for 850k, or there about's.

    I guess that's the problem with pre-auction, you show your cards and give away information. Sometimes when you ask the agent if they are looking for pre-auction they just say that the vendor isn't and it will go to auction - saves you having to make an offer.
     
  19. Bran

    Bran Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    3,213
    Location:
    At work
    sugoi!
     
    Terry_w likes this.
  20. Jasmine

    Jasmine Well-Known Member

    Joined:
    12th May, 2016
    Posts:
    57
    Location:
    Melb
    I would suggest going to BOTH open for inspections and talking to both agents. Ask for the Section 32 of both properties. Do both properties have the same ower(s)? Do they have the same REA? Is one property in better condition than the other?
     
    ExcuseMyFrench likes this.