All Topics / General Property / making an offer

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  • Profile photo of richard wrichard w
    Member
    @richard-w
    Join Date: 2004
    Post Count: 1
    May 8, 2004 - 3:45 am

    Hi

    I want to make an offer on an apartment. Its going to auction in 2 weeks and I don’t want to go thru’ the auction process..

    Guide price is 500 (1 bedroom in eastern suburbs, sydney). I would hope to get it for 475. I was thinking of making an offer of 440 and working up from there as much bas i have to till i get to my limit..

    Any comments on what i should do…

    should i wait till closer to the auction before making my bid
    assuming my offer is rejected, how quickly should I rerbound with another offer
    How much should I increment my offer

    This is my first property purchase, would really appreciate some feedback.

    Thanks

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544
    May 8, 2004 - 5:36 am

    Hi Richard,

    I suggest you conduct a thorough anaylsis of the area to see what other similar properties are selling for. This will give you an indication as to what the wider market thinks the property is ‘worth’.

    Armed with this information attend the next home open make a thorough inspection of all nooks and crannies while at all time eavesdropping on the agent’s conversations to get an idea of what the level of interest has been like – he/she will talk it up anyway.

    Engage in a little conversation with the agent yourself and see if you can elicit some information about the vendor – it is unlikely an outright ‘why is the vendor selling’ question will realise an accurate answer but if you feel like you are getting nowhere you might need to use the outright question.

    All of these steps will give you an indication of what is most likely to succeed – I would try the low ball deal and support it with statistics like X% of auctioned properties were passed in, new land tax regime, exit stamp duty etc to add to the depressed market sentiment.

    If you preauction offers are not accepted then don’t be in a hurry to join in the auction and forget your ceiling – you may find the property is passed in and then your position becomes even stronger.

    As an aside are you buying this property for an investment?

    Apartments are a very, very long term investment and it will in all likelihood be costing you big $ to keep.

    Derek
    [email protected]

    Property Investment Support Available. Ongoing and never stopping. PM welcome.

    Profile photo of JetDollarsJetDollars
    Participant
    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    May 8, 2004 - 5:38 am

    Richard,

    If I was you then I will wait to see the auction result because the market is not going well at the moment and I guess the property will be pass on to the higher bid.

    But by doing so you might lose the chance of buying this property if the property is sold at the auction.

    If you want to buy this property badly then get ready at the auction. If the price at the auction is fall within your reach then start bidding. If the property is pass on at the auction then make sure you make the last bid so you are the first priority to negotiate.

    Maybe the maximum bid that you should bid to is $450k because you want to offer $440 prior auction. Therefore you have some room to move between $450k to $475k.

    Hope that help.

    Kind regards

    Chan Dollars
    [Retire Young, Retire Rich] [strum]

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