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House asking prices / what you actually paid

House asking prices / what you actually paid

Old Aug 6th 2013, 12:59 am
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Default House asking prices / what you actually paid

Did you pay asking price for your house here in Australia? If not, what kind of percentage did you knock off? Was your offer laughed at? We only need to talk percentages here, not actual dollars as that's private. In England we knocked 10% off our last house, and eventually settled on a price 7% under asking price.

I was talking to someone recently, Aussie, who said she always goes in 30% under and lets the owner drag them up. What was your strategy here, and how successful was it? It seems to me most Australian houses are around 30% to 40% overvalued, at asking price, but are vendors taking offers in your area?

Also, I add in edit - in Australia they put a wide range on the asking price (i.e. 550,000 - 590,000) - how did you deal with that? I've been cutting it down the middle and calling that the asking price. (i.e. 570,000). How do Aussies read this wide range? My own research seems to suggest houses go for around 5% to 10% under the middle of the range. Any other experiences? Thanks to all.

Last edited by Zen10; Aug 6th 2013 at 1:05 am.
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Old Aug 6th 2013, 1:02 am
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Default Re: House asking prices / what you actually paid

We went in 5.5% under and got accepted, the house had been on the market quite a while and it was in approx. 2007
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Old Aug 6th 2013, 1:05 am
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Default Re: House asking prices / what you actually paid

Originally Posted by renth View Post
We went in 5.5% under and got accepted, the house had been on the market quite a while and it was in approx. 2007
Excellent, thanks Renth.
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Old Aug 6th 2013, 1:13 am
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Default Re: House asking prices / what you actually paid

House we bought in early 2009 had been on the market for a while at $920k. We offered $850 and were accepted. We also had the cockatoo-damaged windows replaced and some repairs done to ones that wouldn't open/close (as the sashes had broken) included. (Worth about another $5k.)
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Old Aug 6th 2013, 1:22 am
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Default Re: House asking prices / what you actually paid

Originally Posted by Zen10 View Post
Excellent, thanks Renth.
We were under pressure to move as our landlord had asked us to move out. If I wasn't under that pressure I would certainly have offered a lot less.

You can purchase reports of the realestate website of actual prices paid of houses in burbs you are interested in and can compare that to asking prices.

Looking at houses for sale around my area I think it's probably a buyers market and if you can take your time, do so.

Without wanting to start yet another house price "heated debate" I think holding back 6 months or a year and seeing how Australia's economy pans out could get you a very good deal off a distressed seller.

I have several friends who have been made redundant recently and can't get another job plus a few mates with well established small/medium sized businesses doing it really tough, might go under and cause over 100 blokes to lose their jobs.

Terrible news for everyone concerned, great news if you are planning to buy a house.
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Old Aug 6th 2013, 1:25 am
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Default Re: House asking prices / what you actually paid

Originally Posted by renth View Post
Without wanting to start yet another house price "heated debate" I think holding back 6 months or a year and seeing how Australia's economy pans out could get you a very good deal off a distressed seller.

I have several friends who have been made redundant recently and can't get another job plus a few mates with well established small/medium sized businesses doing it really tough, might go under and cause over 100 blokes to lose their jobs.

Terrible news for everyone concerned, great news if you are planning to buy a house.
I'm inclined to agree. Even Rudd referred to the end of the boom in his election speech, which was significant. It's a question of how long it takes the creek to run dry now the source has been cut off. House prices in Australia, while more sensible than the UK, are over-valued. How long can those prices stay in the air without a boom to sustain them? The UK has kept the plates spinning for years.
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Old Aug 6th 2013, 1:28 am
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Default Re: House asking prices / what you actually paid

We paid 20k over the Brisbane City land value on our property - husband initially offered only the land value on the place which was about 25% less than the asking price. That was 8 years ago during a bit of a slump in the market, sellers had put an offer in on another place, subject to the sale of this one and husband offered cash offer and settlement in their terms, a week, a month a year, whatever they wanted. The guy that lives next door offered more than us but terms were not as good so we got it.
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Old Aug 6th 2013, 1:28 am
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Default Re: House asking prices / what you actually paid

Originally Posted by Zen10 View Post
The UK has kept the plates spinning for years.
I have no doubt that the number 1 priority of any Australian government will be to prevent a house price collapse by doing whatever it takes. Just like that idiot Cameron is doing in the UK with his crazy scheme.
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Old Aug 6th 2013, 1:31 am
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Default Re: House asking prices / what you actually paid

Originally Posted by Kim67 View Post
We paid 20k over the Brisbane City land value on our property - husband initially offered only the land value on the place which was about 25% less than the asking price. That was 8 years ago during a bit of a slump in the market, sellers had put an offer in on another place, subject to the sale of this one and husband offered cash offer and settlement in their terms, a week, a month a year, whatever they wanted. The guy that lives next door offered more than us but terms were not as good so we got it.
Interesting - how did you determine basic land value?
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Old Aug 6th 2013, 1:32 am
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Default Re: House asking prices / what you actually paid

Originally Posted by renth View Post
I have no doubt that the number 1 priority of any Australian government will be to prevent a house price collapse by doing whatever it takes. Just like that idiot Cameron is doing in the UK with his crazy scheme.
My view as well. ZIRP, QE, whatever it takes. In the UK house prices are in an artificial lung created by 50 year record low mortgage rates. They can work the same voodoo here.
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Old Aug 6th 2013, 1:33 am
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Default Re: House asking prices / what you actually paid

Originally Posted by Zen10 View Post
Interesting - how did you determine basic land value?
You can do a search on the property and find out what the Councils land value is on it. I think the agent got the report for us but you can do it yourself online I think.

Edited to ad: The land value is now more than we paid for the property - the valuations of your land comes on your rates notice here in Queensland.
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Old Aug 6th 2013, 1:52 am
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Default Re: House asking prices / what you actually paid

Originally Posted by Kim67 View Post
You can do a search on the property and find out what the Councils land value is on it. I think the agent got the report for us but you can do it yourself online I think.

Edited to ad: The land value is now more than we paid for the property - the valuations of your land comes on your rates notice here in Queensland.
Thanks so much. I'll look into this.
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Old Aug 6th 2013, 2:09 am
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Default Re: House asking prices / what you actually paid

Originally Posted by renth View Post
I have no doubt that the number 1 priority of any Australian government will be to prevent a house price collapse by doing whatever it takes. Just like that idiot Cameron is doing in the UK with his crazy scheme.
Interest rate is thought to be being cut again today. Thus support to mortgage payments and lower aussie dollar rates.
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Old Aug 6th 2013, 2:46 am
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Default Re: House asking prices / what you actually paid

Originally Posted by renth View Post
I have no doubt that the number 1 priority of any Australian government will be to prevent a house price collapse by doing whatever it takes. Just like that idiot Cameron is doing in the UK with his crazy scheme.

Yes, this is true. With so much property now tied up in super funds, the cost to the public purse of collapsed funds would be far too high. The government needs to keep property prices up.


S
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Old Aug 6th 2013, 2:57 am
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Default Re: House asking prices / what you actually paid

Originally Posted by Swerv-o View Post
Yes, this is true. With so much property now tied up in super funds, the cost to the public purse of collapsed funds would be far too high. The government needs to keep property prices up.


S
There are a number of tricks up their sleeve they can use to stop prices normalising, and they will use them. Between the two forces of unaffordable housing pushing down, and voodoo economics pushing up, perhaps the most likely outcome is stagnancy.
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