The art of the lowball

Well I did mine solely as it puts thoughts in the vendors mind they had no offers then an all unconditional offer with good terms but low price . But that was 10 years ago things have changed now and lowball offers in Melbourne may well be non existent in the suburbs I want to buy

 

it was 40 degrees that auction and It was one guy who bought the both and he laughed and smirked at everyone after winning both. Both units were internally as ugly as it comes but close to a sought after high school

 

Ouch!.....well he won on the day. There's always another battle to fight.

 

Anybody forumites willing to fess up and rub it in?

 

Haha nah it was a mainland Chinese guy with his translator who made the bids. So unless he uses those Google translate highly unlikely. Besides there were 10 other bidders for both so everyone felt they missed out

 

@melbournian Sounds interesting..have you done any or know anyone who has and got any numbers, profit margins etc. Would love to hear mate.

Cheers

 

It was meeeee.....

 

oh... how i wish i was there for that.....would of had some fun with him....

 

Same, would love to hear from you @melbournian

 

Yeah I have been doing some research over couple of months reckon I have been to more than 100+ inspections and had some friends who bought units the last year and had agents offer them top end prices. I think I mentioned the suburbs I have some knowledge in the previous post.

I have some experience buying and selling renovated properties but went to home and land builds over the last 2 years.

 

Good stuff. What was the margin for the H&L build and in what timeframe mate?

Thanks

 

+1 Very well said.

 

OK here is deal ...which they just came back to me with.....a house in a major capital city.

The house is pretty much land value.....was advertised initially of 250-260k...just had offer accepted for $232k. The land is just over 400sqm....about 13 clicks from town.

Is that a low ball..initially I offered 240k accepted when someone had a look...now have reduced to the new price.

 

Whats the condition of the house? Recent sales for similar stock?

 

The house needs a major reno.....

Hard to say...no comparison at the moment.

The market was headed down the gurgler.

 

What are renovated places selling for?

edit: i just realised you bought it. congrats!

 

There's not much margin for selling home and land and they're more as rental yields. Took 4 months custom build for 3 houses. sold one kept rest for rentals. Tenant recently wants to purchase so meeting her this weekend to hash it out I think it cost me 365k asking 435k

 

oh ok fair enough. If its for cashflow then thats another story. If it cost 365k what can it rent for?

thanks. Hope i'm not being too nosy...

 

360-380 per week. I am only cashing out as capital tied up and want to clear some funds. Renovations in the past have higher capital growth. Highest one was a Reno in shoreditch uk 2 years ago.

 

@melbournian thanks for the numbers/honesty mate.