Property price range

Viewing 11 posts - 1 through 11 (of 11 total)

wblack
Member
@wblack
Join Date: 2010
Post Count: 34
April 13, 2012 - 8:41 pm
Hi all. I've noticed a big increase in properties being listed with a "Price Range" e.g. $400,000 to $460,000. Can someone explain to me how this works. Is this a bit of an auction type thing going on where they wait for the best offer to come along somewhere in their price range?
Thanks.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
April 13, 2012 - 10:03 pm
The seller believes that their property is priced within that range and will usually accept the highest offer. Have a chat with the selling agent, it normally doesn’t take too long to get an idea of what the vendors are expecting and what type of offers (if any) have been put forward.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
wblack
Member
@wblack
Join Date: 2010
Post Count: 34
April 13, 2012 - 10:15 pm
Thanks Jamie, does that mean the vendors are likely to sit on the offers and then take the best they have, other than make an 'on-the-fly' decision on the offers as they come in?
Warren
Jamie Moore
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@jamie-m
Join Date: 2010
Post Count: 5,069
April 13, 2012 - 10:20 pm
They might – but you can get around that by placing a time limit on your offer. Tell them your offer is valid until close of business on a particular day and see how you go.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
wblack
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@wblack
Join Date: 2010
Post Count: 34
April 13, 2012 - 10:36 pm
Thanks Jamie, excellent advice.
Cheers…
Freckle
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@freckle
Join Date: 2012
Post Count: 1,680
April 14, 2012 - 1:44 am
My understanding is that an agent has a legal obligation to present ALL offers to the vendor. No exceptions.
The Freckle
Solomon10
Participant
@solomon10
Join Date: 2010
Post Count: 135
April 18, 2012 - 2:05 am
That's right freckle,but sometimes the agent will try not to pass on low offers for fear of losing face with the seller. Doesn't look good for them if they told the seller they could achieve X amount just to get the business then a savvy buyer comes in with an offer far below this.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
April 18, 2012 - 8:19 am
They should submit all offers – in reality they don’t.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
bardon
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@bardon
Join Date: 2004
Post Count: 557
April 21, 2012 - 1:40 am
In Victoria the price range can only vary by 10%.
bardon
Participant
@bardon
Join Date: 2004
Post Count: 557
April 21, 2012 - 2:07 am
Yes that is in the range 10% of $620,000 is $62,000 so the maximum price range if 620k is the low end, is 620-682k. The 10% rule is being followed and I believe that all agents are toeing the line on this.
ummester
Member
@ummester
Join Date: 2008
Post Count: 510
April 22, 2012 - 12:00 pm
Jamie M wrote:
They should submit all offers – in reality they don't. Cheers Jamie
So is there a way to bring a REA to task if you suspect they don't submit an offer?