Andy_Hanrahan

Hi

Tricky question, but does anyone have a rough idea of how close people generally expect to get to the asking price for properties in Oz? for example, I know here in the UK over the past few months, houses have been going for about 95% of the asking price, but I've heard it's different over there. Bit like asking how long is a piece of string I know, but I'm just trying to get a ballpark figure.

Any help on this would be greatly appreciated.


Andy

Jaykay

Hi Andy

In Melbourne it's advertised as say $300,000+ buyers, so the owners will look at offers over $300,000. If someone wants the property badly, they'll offer as much as it takes!! But at least over here there is no gazumping. Once a deal is made, that's it, the property is yours! Also a settlement date is made at the time of buying the property and it has to be stuck to.

Much easier than UK buying and selling of property in my opinion (and also from experience....shuddering now just remembering the stress of the last house we bought!)

BookBear

OK, if my basic maths skills are correct then we just paid 94.8% of the original asking price. We had a private sale which was good.

N

pommie bastard

Nice one being built in in Perth I am sure you rich Poms have the cash to equal it?




THIS is what $55 million can buy you.

Australia's most expensive home, on the Swan River in Mosman Park, is being built for Angela Bennett, one of the heirs to iron ore royalties left by her father, Peter Wright, a partner of the late Lang Hancock.

The land value is believed to be about $30 million and construction costs, by Perth builder Zorzi, in the vicinity of $25 million.

pommie bastard

Yes it is easier to buy here but its just as easy to pull out all the buyer has to put on the contract is subject to sale, ie if he sells his home , so the trick is say tell the sellers agent you are taking your home off the market same applies with subject to finance.
There are big ranges in order to hook the lower end of the market say an agent asks $300k -$350k they want $325K at lest but tempt those looking at $300k homes , its a trick they all use now.

Herman

Very hard to say because of the auction system. My sister is trying to sell her house in the Gold Coast and they set a reserve at auction last week, as advised by the real estate agent. However, the closest offer they got was 85% this reserve so they have to go through it all again with lower expectations.
From a buyers point of view many real estate agents in Sydney have been criticised for their misleading advertising, some papers even calling it a national scandal. Their basic methodology is to tell a seller that they think they can get, say $1m, for the house so that the seller appoints them. They then advertise the auction and state in the advert that its suitable for $800k+ buyers. Buyers who speak to the agent are told that they expect it to sell for around $800k. Then on auction day the bidders bid low, the seller has a high reserve and the agent, who could'nt really give a toss about anything but a sale and a fat commission, puts pressure on the buyers to bid more and the seller to lower their expectations. This often works because the agents milk the high pressure situation that an auction is for all it is worth. Be warned!

Stan J

Also ... from what I gather a house could be being auctioned off ... the price ever rising upward ... but until the house is announced to be 'on the market' there doesn't seem to be any obligation to sell.

At least that's the impression one gets watching these things play out on the TV (Ch 7, 9, 10 etc)

pommie bastard

One point you also missed they make false bids order to bump up the price this is allowed in most states there is a limit but it still stinks of a con.

pommiesheila

Yes, have to agree with you totally (again) Herman. Have watched "Auction Squad" and "Hot Property" on TV here, and at the end of the day, the only people who win in these situations are the Estate Agents....

Andy_Hanrahan

Thanks to eveyone who has provided info on this, especially PB whose pearls of wisdom always make you feeling joining in a chorus of "Oh I do like to be beside the suicide"


Andy

pommie bastard

So the truth is not all that much fun do you mean this is not the land of plenty , sod it you have bust me bubble.

captaincook

one additional point worth making

most agents here charge for advertising and surprise surprise they make a commission on the space sold. That means that the longer they can keep you on the books and feed you rubbish about needing to effectively market the property the more money they make. Even if the house never sells they will bill you for the advertising so they win win.

agents commissions can be easily knocked down particularly in quiet periods like now. dont pay more than say 3% and link it to the price achieved i.e. if they get you over x $ then 3.5% less than x$ then 3% etc etc. Oz agents are parasites of the worst kind and ruthless so dont be taken in by them.

we sold our house about 4 months ago and it was an experience. once the agent gets a bite that is even half decent a contract is prepared and they then shuttle back and forth between the buyer and seller until the deal is done. Our agent was a parasite of the worst kind i've ever met but got the job done at a reasonable result and prided herself that she never worked after about 9 at night but in reality they will try and force both sides to close the gap and meet in the middle as quickly as possible at whatever time of the day or night. if you are a buyer or seller make it as difficult as possible for them to access you so you control the process.

we have found that in brisbane it is not uncommon for properties to be advertised 10% over the expected asking price. It is best to start negotiations 20% below the price if you are interested and think it is worth buying. I would say for most new migrants to forget auctions if at all possible as its a nightmare with false bidding, vendors bids, agents bids all clouding the process. Far better to bid low and negotiate after the event. If you lose it you lose it but you sleep better at night and there are plenty of properties on the market right now.

Andy_Hanrahan

Thanks Cap'n, that clarifies things a bit.

You state that this is a quiet time. Did you mean for buyers or sellers? Are there really plenty of properties around, because on the real estate websites for where I'm going (Sunshine Coast) not much seems to be coming on the market. I would agree about steering clear of auctions, because I've always thought they favour the vendor ultimately.

Andy

captaincook

Yeah talking about Brisbane - Sunshine Coast market about 10 months ago was red hot and record prices were being set. its calmed a bit but you are right that demand is high and little supply. All the empty nests and sea changers retiring from the cities. We live in Brisbane and things are just not selling at the inflated prices people are asking. The agents are happy to list it and advertise it of course ! Agree with you about auctions and they tend to die away as market slows so its a good measure of the market in some ways.








Thanks Cap'n, that clarifies things a bit.

You state that this is a quiet time. Did you mean for buyers or sellers? Are there really plenty of properties around, because on the real estate websites for where I'm going (Sunshine Coast) not much seems to be coming on the market. I would agree about steering clear of auctions, because I've always thought they favour the vendor ultimately.

Andy