PoppetUK

Hi all,

We have been house hunting for a while (3 months ish) and nothing has taken our fancy but we walked into a house tonight and both my husband and I love it.

The only problem is that is more that we can afford! I am sure a common problem!!!

Here are my questions. If the asking price is $675 what is the lowest offer we could put in without it coming across rude. Obviously in the UK some houses even come in 10-20k below when the market is slow. What is expected in Oz?

What would stamp duty be for us first time oz buyers?

Is there anything to watch in the house buying process. I understand we sign the offer subject to finance but is there anything else we should know?

The reason I am asking you guys is I guess you have all been through this at some point and I am short of time.

Any help would be appreciated.

J

biggy

I would put a first offer in of $640

Bobcat

Which State are you in?

moneypenny20

Not sure of the stamp duty except that for 1st time buyers it's lower than standard. Also you will be entitled to $7,000 1st home buyers grant. That generally takes care of most of the stamp duty.

Bobcat

Sorry .......... please disregard my question re which State you are in.

I remember you stating quite clearly earlier on in another thread that you don't trust Agents!

That rules me out re me replying.

AndyR1976

There are no rules about ahat offer you could put in and it would obviously depend on where the property is and what else is avaiable in the local area for similar money - try to figure out how long the property has been on the market - perhaps spending a bit of time on the internet, talking to other agents and checking dates on thinkgs like when contracts were drawn up etc might give you a hint. If its been on the market for a while then you have a bit of a bargaining tool to say to the agent 'hey idiot, we know this place has been sitting here for 6 months without being sold and we think its over-priced, but we'll give you $x for it...."

Have a look around and see what similar prices are for equivalent houses in the area - if its a 4 bedder in good nick with double garage and decent entertaining areas then try to compare it to similar in the locality to get some arguing points for the lower price!

Pick anything you can to mention to the agent in order to justify a lower price - the agent will obviously want to sell and if you stand in front of him saying "well honey it is nice BUT we'll ahve to re-do that second bathroom...plus the garden looks a bit untidy and the roofing will need looking at....." then you might actually start to convince the agent that they have missed a few things in the valuation/setting the price!

Where is the house?? If its in NSW then check through the S.149 certificate to see if you can pick up anything to argue the price down.

the other option is simply working out what you can afford and walking up to the agent and saying - "look, we like it but we won't go above $450K" - the problem with that is that you might have to be willing to walk away from it!

On the other hand, if you siply can't afford any more and they don't agree to sell at that price then you'll have to walk away anyway - right?!?!

With my brothers new house he was in a similar situation - it was on the market for about $540 and they didn't want to pay more than $500K. So they put in an offer of $490K. The offer was refused but 6 months later the house was still on the market - hadn';t sold cause it was over priced. My brotehr again offered $490 and got the house for $500,000 - exactly what they were willing to pay!


...the other idea is that you well one of your kids......or your husband....to raise the extra cash!

a

AndyR1976

Note to self....Bobcat is estate agent (noise of alarm bells)

PoppetUK

Hi ya,

I don't trust most agents. Doesn't mean to say I don't trust all. Just the ones that I have spoken to have told me houses are going to go under offer and we should put offers dead quick. The think is they are still for sale some weeks later. The agent today actually was really nice. Not pushy and dead treat us like we were stupid to. I guess its just some agents. Sorry if I offended.

J

AndyR1976

If you are wiling to give a state (perhaps even and area) then some peple on here miught be able to give you a bit more info on price trends etc which may help your cause!?

A

PoppetUK

Thanks for the reply.

The house has just come on the market so not good from our point of view. In this area though things aren't selling that quick and drop about 3/4 weeks after being on the market then just stay at that price.

In my opnion the house should be more about 650k because of the other houses in the area. Its not the ocean side of the main road and is one of the most expensive in the immediate area. It is different from all the new stuff on the market in this price range. Although its new it has many rooms, pool and lovely large outdoor entertaining area. What makes it different is its more homely and feels less open. Its 4x3. The 2nd room with ensuite also has a room off of it. Ideal for guests when staying long periods. We could also put another bed in that room if needed or perhaps a sofa and tv so guests can get away from the kids etc. I like that is close to the school so I could walk the kids to it. Its a house I see us staying in for a very long time.

I thought I would take my husband to see it because I knew that if it sat around it would probably drop a bit. I guess I didn't expect to fall in love with it.

Maybe the idea of saying this is our max and then just waiting and seeing is our only option right now but at least we have put the offer in so they know what someone is willing to pay etc.

Its the stamp duty that seems to tip us over the edge.

Does anyone know about interest only mortgages here. That's an option until I return to work. Kiddies quite young.

AndyR1976

You shouldn't have a problem with interest only mortgage - its become the norm in a lot of areas where people can't afford repayments on the interest plus balance.

Talk to a broker about it! Depending on where you are you might find people on here who can recommend a mortgage broker who MIGHT be able to get you a decent deal on fixed rate mortgage or interest only etc.

Bobcat

I am not offended; I'm pretty thick skinned. Apparently i am a bar steward!

From memory i think I offered you sound professional advice about white-ant infestation and how to go about re a survey. Then i was reminded that you don't trust Agents here. As I have stated often online........ there are Agents........ and Agents. Unfortunately our profession does have a bad name; there's no escaping that.......... but not everyone should be tarred with the same brush?

The testimonials on my webpage are not fictitious; most are repeat clients and their immediate family. If I was of dubious character and lacking in ethics; I wouldn't be in my 10th year of consecutive operation NOR.

More than willing to help anyone anywhere in WA re professional advice; and not for monetary gain. I'm not pushing my listings on anyone. I did mention a listing earlier in a different thread, but that's one I'm doing free of charge as a favour to previous return clients who bought off my son nearly 3 years ago.

Unfortunately we got taken to the cleaners when we arrived here from the Solomon Islands as cashed up buyers. We bought a dump valued at $50,000 under what we paid for it 2 years after we bought it. It had illegal extensions; but didn't look too bad when weather was fine. When it rained, inside was like Lake Windemere. We got conned big-time and it cost us plenty.

Everyone should be wary when buying; I wouldn't want anyone to go through what we did. I may be wrong but i thought it would be better listening to someone with a background in the industry; rather than the friend of a friend or someone met over coffee? If i can help, sing out. No obligation whatsoever.

AndyR1976

Bobcat, you almost sound human .....

Thought all you estate agents were built out of scrap in some factory

Only kidding, only kidding!!!!

Where are you located/working?!?.....its good to meet an honest agent (I deal with you guys a lot in my industry..town planner...and some of right shonks...others are quite decent chaps).

A

PoppetUK

Reckon you got the wrong person mate. Never had an ant problem! Never bought a house. Only been here 3 months.

Bobcat

Our office is in Carramar............ we work from home.