The art of the lowball

Darwin and Perth definitely suffering at the moment.

Ouch, I hope not that long, blue chip (Perth) still not recovered from 2007.

 

Almost like getting a date

 

I hear ya....very nices houses near the beach going for 800k no takers.

 

Its been a great time those living in Perth to upgrade their primary residence, absolute bargains to be had IMO.

MTR

 

They won't be anywhere near the city for that price though, and unless they're absolute beachfront, even at that price, it's still delusional paying that sort of money miles and miles from the city.

 

What is your definition miles from the city....is under 15 klms miles from the city?

 

That sounds tiring...attending say 50-100 opens and doing reserach to assess market value for each. How would you do this from interstate? With this strategy, its quite possible I could end up with a property where I have "most" overestimated its market value.

 

Once you see a few in an area you get to know how much all the others are worth without requiring any effort.

 

Let's see the house.

 

Yeah, you just offer and see where it goes, you cannot do anything about vendors who are not serious sellers.

If agent knows vendor won't move, then they may indicate it is a waste of time if you discuss pricing, if nothing much is moving, just keep offering, if you getting lot's of no or go away type responses, maybe you have it wrong.

 

@hammer I agree with @sash. And it works. Superbly at times.

Must remain completely unemotional.

Build rapport fast (never hurts)

Be tenacious.

Target 'motivated' vendors as much as possible.

Chase the deal until you close it.

Then weekend away for well deserved RnR.

 

I agree most times it is. But there are times when the market would pay say $10 but for some reason, very motivated sellor for whatever reason, incompetent REA etc you are able to get it for $8. Illogical but it happens. Also sometimes the 'market' just dont realise the value of the stock, while you do and move in to nab it.

 

Rewards come from effort, you have to *work* at getting good deals, I only know one person who seemed to have them fall in his lap all the time.....

 

True - a few years ago I bought a townhouse - without sighting it. Units were selling for more than the price the townhouse was advertised at. I offered to pay more, as I wanted to lock in the deal then and there... the agent said...No, the bank will think its too cheap (it was getting to the stage of 'mortgagee in possession'). The bank ended up valuing the property, so I had to pay slightly more in the end - bought the t/h for the price of a unit! Sometimes valuers being conservative helps

 

Whomever he/she is, i can almpst guarantee there is much hard work behind the scenes.

 

Nice one!!

 

To add, it was purchased:

• Below Market Value by about 12%-15%
• @ 7% gross rental return
• Capital Growth of 50% in just 2 years (more like 60% plus if you take into account the buying price)
• Convenience of Westfields, Train line (45 minutes express to the city), Hospital, TAFE, major roads, within 10km proximity of University of Western Sydney

Key take aways:

• Helps to act fast when purchasing in a rising market. That's when you need to know an area really well and have networks with the agents so if they see a deal that may work for you, you're the first one on the email.
• You make money going into the market not when you exit
• You can get both cashflow and capital growth (front loading cashflow has worked for us)
• Taking action is better than not taking any action

 

I don't know how anyone can hope to do much better then that. Amazing stuff.

 

Too fast Leo I added a few key take away's to the post

 

Hehe. ..ooops..