sueoc

Offers between?House prices.

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    What's your take on this phenomenon here?To me it's disgraceful.Why is a house not priced as is,without adding confusion and uncertainty as to what it will cost.After all,it is probably the biggest decision we will ever make here financially.This is hedging your bets gone mad IMO.:huh:

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    I don't really understand it, but I think it is more suitable to a market where there may be lots of people after the same house - to try and get them to bid up the price. There are more and more houses for sale these days that are 'price on application (poa)' or 'contact agent', because they are less sure what they will get for them in a falling market. I have been analysing prices in the Grange and Henley area for ages now, and most sellers have had to drop their prices, many more than once in order to sell.

     

    However of the ones that are advertised for a price range where I have found out the selling price, over the last 6 months or so,

     

    1 sold for more than the top of the range

    11 sold for a price within the range

    15 sold for a price below the bottom of the range, with the average discount being 6% (one selling for a massive 17% less!)

     

    So prices are falling, and don't be afraid to put in an offer for less than the bottom of the range!

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    I agree, when our house was up for sale 3 years ago when the market was very competitive, the price was advertised as in the $400,000's - talk about a big difference. It was going to auction and because we had learnt at that stage that very few made it to auction as they sold before, I asked if they were open to offers before auction and they said yes, so we made our offer based on other auctions we had attended and the market at the time.

     

    It is the same when you go for a job interview and they say what salary are you looking for, instead of just advertising the salary, then it is really hard to not under or oversell yourself.

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    Guest scmercer

    Our house is up for sale and it had a range but I am not too sure about how the whole thing works. I don't know whether it puts people off so I have now just changed it to a set price. Hopefully this will encourage more offers!!

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    I agree, I always ask for a fixed price. If this is what you want then ask for it.

    Ranges were for the booming market in my opinion.

     

    Some agents use a range for the search engines for the internet ie $350-380,000 so this shows up in the $350,000 and under price range on real estate.com and domain.

    this attracts more viewings to the property.

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    On the flip side of it if you were selling your house you would want to get the highest offer you can get and some agents tend to tell owners what they want to hear. If you're not in a hurry to sell then you can afford to hold out if you think your house is worth it or not sell. I guess it all relates to people's circumstances and if they have to sell. A few years ago if you saw a house and you liked it you bought it quickly. Also the new auction rules that came into affect a couple of years ago deter agents from putting a price range in because then I think it ties you to within 10% of that range. This was done to deter agents reeling people in with a low range and fully expecting that the property will sell for a lot more.

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    On the flip side of it if you were selling your house you would want to get the highest offer you can get and some agents tend to tell owners what they want to hear. If you're not in a hurry to sell then you can afford to hold out if you think your house is worth it or not sell. I guess it all relates to people's circumstances and if they have to sell. A few years ago if you saw a house and you liked it you bought it quickly. Also the new auction rules that came into affect a couple of years ago deter agents from putting a price range in because then I think it ties you to within 10% of that range. This was done to deter agents reeling people in with a low range and fully expecting that the property will sell for a lot more.

     

    Exactly right the range cannot be more then 10% and in the agency agreement the owners must put that they are willing to accept the lower price.

    This deters what they call baiting.

     

    Just to add the owners do not have to accept any offer even if it's in the range.

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    Guest BurgessFamily
    15 sold for a price below the bottom of the range, with the average discount being 6% (one selling for a massive 17% less!)

     

    You're right, prices are falling. According to AMP, the average discount in the metro area is 7.1% and has been continually increasing since the start of the year...

     

    trends.jpg

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    Guest angiestaff

    we've just bought a house and previous to that we looked at a few houses with 'price between' on them and was informed by real estate people that the lower price is what the estate agent thinks the property is worth (and may go for) and the higher one is what the owner wants for it.

    our house (i can say that now cos the sold sticker has gone on it!) was up for $318,000- $325,000 and we offered $320,000 and it was accepted straight away.

     

    ange x

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    Guest michaelnitschke

    In the Adelaide Hills Price Ranging is quite common.

     

    Personally I don't like it, and most buyers feel uncomfortable when they see a property advertised like this. Its vague, and difficult to work out what a seller is asking for the property.

     

    I recommend to sellers to always use a single price wherever possible as it provides transparency to what our objective is in the sale.

     

    If you are looking at a property in a price range, try to disregard either end of the range if you can and go with your gut feel on what a fair offer would be on the property. In SA all written offers must be put forward to the owner by law, and at the end of the day the worst they can say is no and counter with another figure - now you know what they are really asking!!! :)

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    In the Adelaide Hills Price Ranging is quite common.

     

    Personally I don't like it, and most buyers feel uncomfortable when they see a property advertised like this. Its vague, and difficult to work out what a seller is asking for the property.

     

    I recommend to sellers to always use a single price wherever possible as it provides transparency to what our objective is in the sale.

     

    If you are looking at a property in a price range, try to disregard either end of the range if you can and go with your gut feel on what a fair offer would be on the property. In SA all written offers must be put forward to the owner by law, and at the end of the day the worst they can say is no and counter with another figure - now you know what they are really asking!!! :)

    You cant argue with that.Thanks.

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    When I bought my Hallett Cove home there was a price range on it. That was a few years ago now. True it was in the booming years where if you saw a property and liked it you snapped it up or it was gone. The agent who was selling the property told me to ask at the starting range and I did. It was rejected. The agent then told me to go up by a couple of thousand and it was rejected again. I went mid range and bingo it was accepted it was a bit of a protracted process but I didn't want to pay more than I had to and the owner didn't want to sell for less. Just remember that a good agent will be working for their seller - after all it is their bread and butter and if you were selling your home you wouldn't want your agent trying to drive down the price of your home. There are quite a few agents that only sell for a single price range, check it out and only buy from those people. I bought a home through real estate agents Walter and Irvine a few years ago and they seem to have a no nonsense approach.

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    Guest Nick Tuck

    Price ranges can work in both ways. At the moment with the market being the way it, (downwards) then having a lower price range is to draw in more enquiry, but this is not necessarilly at the right price. If you advertise lower than a price you want you damage your price and guess what, thats where offers will come in.

     

    I always put in a fixed price as it says what price is wanted by the vendor. Again, the same as in UK, the buyer can make a decisions if they will pay that price, less or even more, but atleast this way you know the ACTUAL PRICE.

     

    Good luck. If you need any advice or help with buying I am happy to assist as I am an agent in Western suburbs.

     

    nick@lakesandportsiderealestate.com

     

    Nick Tuck

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    Guest Peachie

    I have just bought my first aussie home in Grange looked at henley and west lakes too saw loads with and without ranges only offered on one house and prices are stagnating or coming down I put in a lower offer was refused I left it a week than offered an increase its defo a buyers market at the mo Got a great deal in an area a may not have afforded a year ago!!

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    Very interesting thread. We will be coming over next month (fingers crossed if house exchange goes through ok) and will be looking to buy with 6 months of arriving. Looking at the southern suburbs and sometimes realestate can be a but misleading with the offers in between.I thought it ment you could not offer below this !!!!!! It does seem like a buyers market at the moment though so could be a good time to get a bargain.

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