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Price guide bracket

Discussion in 'The Buying & Selling Process' started by Krysta, 5th Mar, 2016.

  1. Krysta

    Krysta Member

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    Hi all...
    The only properties I've ever purchased have been a set price, I put in an offer and then the negotiation process starts.

    But what happens when there is a price bracket of say $399000 - $429000, what are the rules? Can I put in a bid of lower than $399000 or is that frowned upon?

    Thanks for any feedback!
     
  2. Bran

    Bran Well-Known Member

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    Absolutely.

    In an ideal world, somewhere in that bracket indicates the vendors expectations. IF you offer 400, where to from there? Only up.

    Go as low as you want.
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    When the agent quotes a range, you can bet that the vendor wants something at the top of that range.

    Of course, what the vendor wants may not match the expectations of the general market, either up or down. At the end of the day, you need to understand how the property you're making an offer on fits within the general market.
     
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  4. Mac Fields

    Mac Fields Well-Known Member

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    How long has the property been available for? Is it in a 'hotter' market where properties are for sale for a shorter time?

    I find price ranges and 'offers over' prices are sometimes a silent auction where the vendor can see how much people are prepared to pay.

    Recently I put an offer in for a property that was below the 'offer over' asking price but prior investigation showed that it had been for sale for 2 months and for sale the year prior with no sale so I tried a lower price and was prepared to walk away if they didn't accept my price.

    You could ask the REA questions to understand why they have a price range and reasons for selling, needing a price etc. Do you know if asking price ranges is typical for that REA or location?
     
    Last edited: 5th Mar, 2016
  5. D.T.

    D.T. Adelaide Property Manager Business Member

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    There's no rules on your offer - can be under, within or over the specified range. However, just depends on both vendors circumstances and market conditions at the time in the place you're looking whether offers will be entertained
     
  6. SmashedEconomy

    SmashedEconomy Active Member

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    There is only one rule - only pay what you think it is worth, price guides are for fools.
     
  7. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    Going by how some agents are still operating, even the higher figure won't be accepted.

    Tough weekend of house hunting.
     
  8. Big Will

    Big Will Well-Known Member

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    Disregard advertised price only pay what you think it is worth.

    Given OP range $399000 - $429000, you could be paying to much even at $350,000 or underpaying at $450,000.
     
  9. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Yep, nothing changes. I did a re.com search for properties between $400K-600K this morning. I phoned the agent on one of the listings, and was quoted "over $700K". When I said that it turned up in a $600K search, the agent blamed his off-sider "for doing that". :eek:
     
  10. Blacky

    Blacky Well-Known Member

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    I have always wondered if it was the REA or RE.coms fault when that happens.
    You can also list the properties in price order and a place advertised for say $500k will be before a place listed at $480k.

    Blacky
     
  11. Big Will

    Big Will Well-Known Member

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    When a REA list a property there is the public advertised price and then a hidden search range. That is how a 'Contact Agent' will appear in there.

    Yes you can advertise a property for 1M+ with a hidden search range of $100,000 minimum price.
     
  12. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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    I was interested in a property in Lake Macquarie that was priced at 525k.

    Offering the asking price was not enough to secure the deal.

    I'm getting sick of the guess work so buying a block of land and putting a project home on it.
     
  13. AndrewTDP

    AndrewTDP Urban Planning Consultant Business Member

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  14. Big Will

    Big Will Well-Known Member

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    I know this is a joke article....

    He quoted $1+ but wanted $4 which is 4x the introductory price so he is under quoting worse than the REA. It is like a REA quoting 125,000+ and selling for 500,000 not going to happen... I know of properties that had a reserve of $1 does that sold for $500,000 does that mean they under quoted it by 500,000x?

    If he said $3+ well now it could be $4 for the medium or even $5 for large, same thing with houses (3bed/4bed/5bed or something).

    The flat white is NOT a unique product, he can make another one with the exact same ingredients in the same cup size by the same manufacturer and coffee made by the same person. House/land are all unique even ones that are side by side and there is emotions that a tide to a place both from buyers and vendors.

    A coffee there will be very little emotional involvement..