Im off to an action next week and feel I need some tips on the process. Anyone got anything they would like to say about actions? May be a morgagee sale. The agent unfortunety knows Im a cash buyer. She also knows I was intrested in it before and Im getting sick of looking as Ive been in the area for 6 months. I feel they may push the price up as they know or think Im dead keen on the place. I knew about it before the agent and this did not go down well with them as I was on to it fast. Help on the following needed:
Should I get a proffeshional inspection for pest & building?
If so it shows Im keen and my be a waist of money if it goes to high.
Actions of this type dont normaly contain chatels big question mark here.
Should I get a copy of the sect. 32 and contract a week before and run it buy my solicitor.
Ive got a 32 but not a contract of sale.
Should I make an offer before.
Should I get someone elles to bid for me and wait in the car.
I dont like actions as it seems to be free entertainment & a house & gardens tour for the whole street. 20 people and only 2 biders. I feel the whole street will be watching me and dont feel really confident and I know the agent will be in my ear.
I can inspect it myself but Im not a builder, I will save a few bucks but what if……
I know what Im willing to got to, but feel others may think its worth more (forgetting the work that needs to be done to it)Any usfull info. (other than dont buy realestate) would be great any personal expiriances welcome.
Thanks kindly.
Regards
Tony……………..
Send a friend to bid for you if they know you. And cancel yourself out at the agent, tell them you found something better. That usually pisses them off and scares the shit out of sellers when they hear 'well, the buyer dropped out, we're back at zero again'
Scamp
Yes I think it may be a good idea. Its a morgagee sale mate (one of many to come). I think I showed too much intrest in it and the agent is on to me. I dont trust this person that much. I feel they may dummy me up. I will try to find a friend to bid for me and tell them I m in mexico. The agent has already posponded the auction 2 weeks so it get more people intrested, more to bid against me.
Cheers
Tony…….
Don't worry about bidders. There's no buyers. You will be the only bidder. If there are other bidders then you should think the seller is bidding. If you don't get this one, go for the next one.
Remember that :Houseprice = Second highers bidder price + 1$
So, if the second highest bidder bids 200.000, you will have to bid 200.001$ and that makes the final price.
Just bid 60% of what you think you could instantly sell it for ( usually you will get 80% of the 'instant sale price' anyway, so you will get 20% discount. That's a good start.Remember : houseprices in Australia are 50% overpriced. Anything you buy now at 60% of the asking price will STILL be overpriced by 10% in the long run. Don't go to extremes, stick to 60% of asking price. Don't go higher, you will ruin it both for you and the other guy bidding ( if there's another guy bidding ).
the lower hte house sells for, the cheaper the NEXT auctions will be ! So you are a winner no matter if you get the house or not, AS LONG AS you don't bid more than 60%. If you bid 80% or more, you will be the loser, no matter if you get the house or not.The agent has already posponded the auction 2 weeks so it get more people intrested, more to bid against me.
That often means there is limited interest, a positive for you.
Sounds like you're super keen on the place and you don't know how to hide it. I know of a few friends like that, and my dad is one of those as well. He's never gotten a good deal in his life. Always getting stiffed as they see how excited he is. I've heard that employing a buyer's advocate works well esp when you suspect dummy bidding.
Bought a property today should have read this forum earlier..for sure there was dummy bidding going on ..possibly paid $15K too much anyway can never be proven. Always bid late never early ..its a petty fair trading doesnt send inspectors to auction to keep agents on their toes..as real estate agents can never be trusted..Dont know about all property being over priced in Australia. It comes down to suburb and even within suburbs some streets are better than others..I even check out neighbours..always check recent sales in the building.
Thanks guys Yes its a mixed bag at action. I wished I kept my big mouth shut. On inspection the agent even asked me where I was planning to put my furniture. I hope Bob is correct I never thought of it like that Bob maybe your right. I did see a few others at the inspection. I am concerned about the dummy bidding, yes I feel auctions need to be monited by some athority as surgested. I like the place buy Im not going to pay more than I can build it for that I can tell you, Im fact Im only there if its a bargan.
I think I may have a bit less competition as you must have your finance appoved and the 10% deposit ready to go. I guess I just set my limit and after that they can have it.
Cheers
Tony………………Set your minimum, don't set your limit. Houses are still overpriced at the moment, don't get suckered in to a falling market. There will be many better deals than this one. Like I said, offer 60% of what you think it's worth ( that might be a HUGE difference on what they WANT for it, tough luck for them ). If it's 'advertised' at 800.000, offer 250.000 if you think it's worth 400.000 : what it's worth. Remember, advertised prices mean NOTHING.
They are wishful thinking. I can advertise my 2 bedroom townhouse for 1.2 million but I will never get it. Don't feel like you're cheeky, you're one of the few ACTUAL buyers out there. Don't pay 600.000 for a house you can get for 250.000 in 1 year from now.Scamp
I had the same thourght today Im buying into a falling market. I sat on my hands when it was going up and now I need a place as a PPOR. I lost money not buying 5 years ago and now I may loose again if they go down further. I know you are 100% convinced they are going to drop, thats fine Im not that sure. As an investment it makes no sence to buy realestate now but peopoe still need a place to live PPOR. Inflation is around 5-7% building materials have gone up steel & cement the most. So I see existing property being priced inline with the cost of rebuilding the same house. Ive costed it out to build the same place minus replaceing the inside carpet etc then marked the house down $50 -60 K because its what I think a buyers market.I think if you can pay your morgage then why are you selling it. If you are forced to sell you have to take what you can get or what its worth on the day. Im hoping they get what Im willing to pay. If not I wont be hart broken or sleeping under a bridge. Im easy and can live in any city or state and the realestate suplement in the local paper is getting thinker every week. From a sellers point of view they have only one house to sell as a buyer I have many to choose from. Most kids Ive spoken to have had to drop there asking price down $10 -20 -30 k and some agents have told me they tell vendors to try another agent as they wont to much. They feel "it owes us that much" many mum & dad self claimed investers are starting to see that there property is not going up in value and is not covering their intrest only repayment. If a place is on the market in the outer suburbs
is on the market for 500,000 does that mean I can rent it out for $500 a week, no way. It means the place is over price. But try telling mum & dad who think they can add the 80,000 intrest they paid over the last 3 years to the sale price. It called negative equity. The thing the bank & the real estate spruker forgot to mention. If I miss this one no problem as you said there is one next week to go to and a lot more over the next 2 years.
Cheers & thanks for your comments.
RegardsTony………………….
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