What pricing method do you prefer, apart from auctions? I’d like to see what others think and why.
DO you prefer a fixed price, which will at least tell you what the buyer will accept?
Or do you like an indication e.g. mid $200,000, so you have a general idea what they are accepting?
Or the ‘offers over…eg $200,000’ so you know where to start?
Lastly, this ‘buyer ranged’ price range, e.g. offers between $205,000 and $255,000 so you can make an offer in between these prices.I came accross this last one, buyer’s ranged, yesterday and I simply couldn’t make up my mind what to offer. There seemed to be a lot of interested people in this Open House, taking the agent aside to make an offer. If you want this place ‘badly’ and still offer a price that’s on the low side inside the range, you can might miss out, but if you make the offer high inside the range, you’ll never know whether you could have gotten a lower price. What if the offer below you is heaps lower than your offer?
ALso, I was told that if you make a too low offer, the agents gets back to you to give you a chance to increase your offer. Is this commonly done or an exception? You kind of rely on the integrity of the agent, because they, if they’re dishonest, could just make it up so you’ll make a higher offer. Is this worse than an auction? At least at an auction you can see for yourself what the bids are. Am I seeing this wrong?What do you think all about this method? I’d like to hear your opinion.
Regards, CeliviaHi Celivia,
When I’m buying I much prefer to see a real price.
The $200,000+ type figures are real pain because the amount of the + varies a great deal from agent to agent. My view of the + would be about an extra 10-15% but I know of at least one agent who expects around 50% extra.
The buyer ranged deal, well I’d just guess that the middle of the range is their real asking price.
Really you need to do your own due diligence as to what’s a fair price and don’t go above it. Don’t get conned by the agent’s tricks and try not to get emotionally involved.
Rod.
well you may see bids at aun auction..
they may be ‘vendor’ bids, or even mates bids.
everything as clear as muddy water.
still, a lot ‘nicer’ than watching the death notices, and lowballing
NZ Property Investing News
http://www.Landlords.co.nzHi Celivia,
Now this IS a topic I feel very strongly about.Where do I stand ?
Well I’m with Rod on this one. I like a real price and not just when I am buying. Imagine you are the vendor. You know your area, what’s sold lately and for how much; and in your head you Know what price you would be happy with.Say you want to sell for 250k.
The agents will say to potential buyers… price range 200K to 250K… or “offers over 200K”.
So of course the buyers will come in with offers JUST over 200K.
They, the agents will placate you, the seller, with the rationale that this will attract more buyers with that figure, and then they will negotiate them up to your price.
To me this is very bad for you because it creates a false perception that your property is worth something maybe just over 200K. When really what you have wanted is 250K bottoms.These constant low offers can lower your confidence. You won’t be happy, especially when the agent then comes to you and says somthing like…that the market is telling him that your property is worth about 200k. He/she has just orchestrated this ! Well this is what I think.
Hey the agent wants a sale, a little extra commission on that 50K or so doesn’t make that much more for him/her.
And if I was buying I would expect to put an outright offer in, negotiate with the vendor until a price is agreed, without another party being in the wings. I refuse to be drawn into a dutch auction which I think a lot of “sale by tenders” could turn into.
Celivia, the open house you went to…. I’m sure the agent was using the chinese whispers to his best advantage. Buying a house is very exciting and there is a lot of emotion flying around.
One thing I have learned from the “forumite learned” on this site is to do your figures. If it all stacks up (try to eliminate the emotion…I want it “badly”) then put in your offer and if you don’t get it there will always be another, if not better property out there for you.
Hey longest post to date. I did say I felt strongly! [
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