Hey all…
On my trip over to kiwiland I noticed quite a few properties go out to tender rather than having a listed asking price.
Is this a different process, or is it just a matter of submitting your offers and having the vendor pick the highest one ? No doubt this is due to the current state of the market.
Is there anything special/stuff to look out for on these deals?
thanks
andrew[cap]My personal experience is that I’m “CHEAP”, i.e. way down in the pecking order!!! I’ve yet to get a single property at tender. It seems like the real estate agents use the tender process to create interest and pressure purchasers into paying higher prices than they might otherwise (a bit like auctions!)
My understanding, from a recent conference I attended, is that once the market over here starts to slow down/level off/ or fall you will see more properties with prices being advertised, so yes, tenders have a lot to do with the state of the market.
I attended an auction in Gisborne the other day where even the agents were aghast at the selling price as it climbed over $600k. In fact, they started clapping and yahoo-ing when it hit $700K. The final selling price ended up just over 800K — unheard of for the town!
The best thing to look out for on these deal is the ridiculous prices people are paying for properties… just wait a couple of years when they’re squeezed for cash and trying to off-load ’em!!!
Successful investors make their money when they buy
Hi Playa Chicken,
Was pleasantly surprised when I read your post as I have 2 properties in Gisborne – yippee!. I knew the market had gone up there as have been keeping in touch but that price is fantastic. Do you mind me asking where abouts in Gisborne it was. Maybe I should look at selling and realise the gain.
You can pm me if you like.
[biggrin]
Cheers
Fluffy
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