VIC home buyer strategy, help needed...
Jul 24th 2010, 12:45 pm
#1
Forum Regular
Thread Starter
Joined: Jan 2008
Location: From Manchester to Melbourne.
Posts: 103
VIC home buyer strategy, help needed...
Hello all...
I could not find a relevant answer to this looking back over the last couple of years on BE. Any help or advice would be gratefully received.
In a nutshell, we're trying to buy a family home in the Melbourne burbs after a couple of years renting. Finances in order and have attended auctions and private sale OFI's to get a feel for things.
We found a run-down place recently, and there seemed to be very little interest from others. We put this to the agent and were invited to make an offer (almost 2 hours of form filling, thinking we were the only serious buyer, and made an offer well above the minimum guide price). Hey presto, another buyer materialised overnight and we were invited to increase our offer, which we did, marginally. We were then given a 'hint' as to how much we might offer, and declined, eventually missing out by not much.
In 2 days time we are in a similar situation. Seemingly not much interest in the place, much less that the other local houses in the same price band. We are told that all interested parties must submit written offers on Tuesday. One hour before the deadline the envelopes will be opened and final offers extracted.
We like the place a lot, but it's very hard to work out a game plan - we don't want to bid our maximum as there are not many rivals and we might be acting foolishly with decades of debt. Plus if we set the bar and others get an idea of this we might somehow validate a price which is above the value and cause it to get out of hand.
I realise that we should not pay more than we are comfortable with, and that the market will eventually set the price.
I'm just wondering if there are any pearls of wisdom or game-play tips out there that might be worth considering.
Cheers,
Sean.
I could not find a relevant answer to this looking back over the last couple of years on BE. Any help or advice would be gratefully received.
In a nutshell, we're trying to buy a family home in the Melbourne burbs after a couple of years renting. Finances in order and have attended auctions and private sale OFI's to get a feel for things.
We found a run-down place recently, and there seemed to be very little interest from others. We put this to the agent and were invited to make an offer (almost 2 hours of form filling, thinking we were the only serious buyer, and made an offer well above the minimum guide price). Hey presto, another buyer materialised overnight and we were invited to increase our offer, which we did, marginally. We were then given a 'hint' as to how much we might offer, and declined, eventually missing out by not much.
In 2 days time we are in a similar situation. Seemingly not much interest in the place, much less that the other local houses in the same price band. We are told that all interested parties must submit written offers on Tuesday. One hour before the deadline the envelopes will be opened and final offers extracted.
We like the place a lot, but it's very hard to work out a game plan - we don't want to bid our maximum as there are not many rivals and we might be acting foolishly with decades of debt. Plus if we set the bar and others get an idea of this we might somehow validate a price which is above the value and cause it to get out of hand.
I realise that we should not pay more than we are comfortable with, and that the market will eventually set the price.
I'm just wondering if there are any pearls of wisdom or game-play tips out there that might be worth considering.
Cheers,
Sean.
Jul 24th 2010, 11:49 pm
#2
Victorian Evangelist
Joined: Sep 2005
Location: Melbourne, by the beach, living the dream.
Posts: 7,704
Re: VIC home buyer strategy, help needed...
Sean, just always bear in mind that this one is not the last house in the world, so if you miss out there will be another one!
Better than bankrupting yourselves by paying over the odds to secure this one.
BB
Better than bankrupting yourselves by paying over the odds to secure this one.
BB
Jul 29th 2010, 1:30 pm
#3
Forum Regular
Thread Starter
Joined: Jan 2008
Location: From Manchester to Melbourne.
Posts: 103
Re: VIC home buyer strategy, help needed...
Thanks BB,
Your sound advice led us to make an offer within our means and to keep things realistic.
We got the house.
Thanks.
Your sound advice led us to make an offer within our means and to keep things realistic.
We got the house.
Thanks.
Jul 29th 2010, 2:02 pm
#4
Home and Happy
Joined: Dec 2002
Location: Keep true friends and puppets close, trust no-one else...
Posts: 93,824
Jul 29th 2010, 3:05 pm
#5
221b Baker Street
Joined: Jun 2010
Location: Miles from anywhere, Victoria, Australia.
Posts: 14,125
Re: VIC home buyer strategy, help needed...
Jul 29th 2010, 9:07 pm
#6
Victorian Evangelist
Joined: Sep 2005
Location: Melbourne, by the beach, living the dream.
Posts: 7,704
