Buying a Property - Price Neg

[sush]

Hi All

 

Can anyone give me some advise on buying a property in Adelaide, regards to offers,

 

Is it like the UK where people put in stupid offers and see how it goes or is it the case where you stay within the guide lines to what people are asking ?

 

Thanks

 

Sush.

 

[Northern Mick]

Depends on a few factors. What the market is like, how much interest there is in the property and if the vendors are being realistic on what they want. At the moment I would be tempted to go in with a lower offer and see what happens. Be warned though, someone else could offer the asking price and you might not even be told by the agent. Some agents will come back and ask if you want to increase your offer and some will not even inform if you have been successful or not. I've found though that if the agent comes back to and asks if you are willing to increase your offer, you are close to being accepted. From here don't go too much higher. This is just my experience after buying a couple of properties and putting offers in for quite a few more. It is definitely a buyers market at the moment.

[Anne B]

I haven't bought a property myself (yet) in Adelaide but I do monitor prices. Over the past few months very few if any houses that have sold in this area (postcode 5022 Grange and Henley) have achieved a price in the asked for range. Obviously more and more properties these days are "poa/contact agent" so it is difficult to know if the sellers got what they wanted. Here are some recent sales, listing the original asking price and the sold price.

 

The average discount below the mid-point of the price range is 8.75%, so for a house advertised at 500k-550k, midpoint of range = 525k, then sold price would be 479k.

 

From this I would conclude that it's a buyer's market and you should bargain hard!

 

Asking price Sold Price

[TABLE=width: 113]

[TR]

[TD=width: 86, bgcolor: transparent]610k -640k [/TD]

[TD=width: 64, bgcolor: transparent]610k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]590k-620k[/TD]

[TD=bgcolor: transparent]470k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]620k-660k[/TD]

[TD=bgcolor: transparent]535k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]880k-930k[/TD]

[TD=bgcolor: transparent]835k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]2m-2.2m[/TD]

[TD=bgcolor: transparent]1.82m[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]469k[/TD]

[TD=bgcolor: transparent]415k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]489k-529k[/TD]

[TD=bgcolor: transparent]495k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]590k-630k[/TD]

[TD=bgcolor: transparent]550k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]570k-600k[/TD]

[TD=bgcolor: transparent]517k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]615k-635k[/TD]

[TD=bgcolor: transparent]590k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]495k-510k[/TD]

[TD=bgcolor: transparent]475k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]545k[/TD]

[TD=bgcolor: transparent]510k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]590k-630k[/TD]

[TD=bgcolor: transparent]585k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]630k-650k[/TD]

[TD=bgcolor: transparent]630k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]1.125m[/TD]

[TD=bgcolor: transparent]930k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]1.75-1.85m[/TD]

[TD=bgcolor: transparent]1.65m[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]1.7m[/TD]

[TD=bgcolor: transparent]1.52m[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]1.4m-1.5m[/TD]

[TD=bgcolor: transparent]1.263m[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]719k[/TD]

[TD=bgcolor: transparent]670k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]895k-950k[/TD]

[TD=bgcolor: transparent]865k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]650k-680k[/TD]

[TD=bgcolor: transparent]617k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]715k-735k[/TD]

[TD=bgcolor: transparent]700k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]520k-540k[/TD]

[TD=bgcolor: transparent]520k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]595k-645k[/TD]

[TD=bgcolor: transparent]550k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]600k-640k[/TD]

[TD=bgcolor: transparent]595k[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]1.2m-1.25m[/TD]

[TD=bgcolor: transparent]1.09m[/TD]

[/TR]

[TR]

[TD=bgcolor: transparent]1.9m-1.95m[/TD]

[TD=bgcolor: transparent]1.65m[/TD]

[/TR]

[/TABLE]

[sush]

Thanks both

 

That is good to know and very interesting replys.

 

 

Sush.

[Guest Nick Tuck]

Hi Sush. I am an agent here in Adelaide.

 

When you get to a point and find a property that you are serious about then you will need to gauge how that specifica gant works.

 

I hear all the time that people put in offers and never even heard back from them and that it sold to someone else. This is not how I would work.

 

With a lot of agents it will be that you can put in an offer (below asking price) and you will find out whether it is accepted or rejected. If an agent is not going to come back to you (as they require the highest price from the start) then they SHOULD state this at that point. This is how I would work.

 

That way you know you have put in the best offer that you are prepared to pay for that home.

 

Make sure you research the area and surrounding properties. This is the best way that will be able to gauge prices. I can provide people with sales list of what has sold in specific suburbs if requested.

 

The market has fallen here so prices should be ,more realistic. This doesn't mean that you can offer 5-10% less on every property though, because each property & seller is different. If they are realistic then they should be priced right to sell, if not then they may well be succeptable to a lower offer.

 

I know that I am still currently selling homes at the asking price, some for more than and some for less. As I said it just depends on how realistic that price is.

 

Good luck & let me know if you require any further info.

 

Nick Tuck