Good luck op fx
Good luck op fx
What property value website are you looking at?
There is no way I would buy a house for 80- 100k more than he payed 12months ago. Especially since prices are dropping and dropped since then still.
This guy is making money because he's being smart about it, he is buying low and selling high, you need to think the same way. If you aren't in a rush, look for something you get cheap aswell and make some equity in the house.
You also need to consider the bank, they will look at what the house sold for last year and base their valuation on that. If no renovations were done, why would the house be worth that much more? In todays market it wouldn't be and the bank doesn't care, they will only look at that. So you should contact them first and make sure before you make an offer.
Secondly, why do you need to go with an agent and pay commission? If you contact the owner directly, make the offer with them alone, if he agrees, get a solicitor and go with them. You don't need an agent, and he'll be paying commission if he is selling not you.
Is there no other houses you can look at? What is so perfect about this house? Can you buy something much cheaper and spend that extra money renovating or adding to get what you want?
Totally agree with Olin, 80k in 12 months in this market I will be surprised if he knocks you back. He is rich because he has been smart, probably started low and worked his way up - a good lesson for a lot of home owners.
It's weird. The house was for sale at $629 but sold for $550 only 2-3 years ago. Then it sold for $450.
$450 for this house doesn't seem right. I had a different agent independently do a market value and came back with $550.
Owner did do some renovations to it.
It's a great house. Only 200m from beach and parklands. Up the road from shops. A tennis court and tropical inground pool.
We love sport hence why tennis court is a great feature.
To us this house is perfect for our family. But yes I want to buy it at a reasonable price.
I'm thinking $530 is fair if he truly did buy for $450.
Have you been on realestate.com and checked out comparable houses? Recent sales? etc... I think 80,000 is a big jump. I would offer under and see what the agent says.. it's important to make an offer that isn't based on emotion, often difficult to do as well.
We bought a house that was not for sale and I deliberately went about 20% under what we thought it would be worth, the agent scoffed and said they couldn't possibly sell it for less than _____ and I said ok we'll offer that then. We bought it that day.
Keep in mind an agent doing a valuation is different to a professional valuation the bank does. I would pay someone to do it through your bank before you put any money down for it.
It selling for 200k plus and then dropping that much is a concern in the area. How much have property prices dropped? Are they still dropping? My advice is, buy with your head not your heart. Never say 'I love this house' That always makes someone desperate and pay more than it's worth. The location sounds great, it has a tennis court and pool on the land? Wow it sounds so cheap. You can't even buy a bungalow for that around here. Good Luck.
The market here has easily risen 10% and still going plus if you got the sale price of $450 of onthehouse.com odds are its wrong - ask the agent to check the industry sites to confirm ( if you were in NSW I could have done it for you!)
You know the market as you are actively looking so trust your judgement
You can also go to the local council to check the correct sales history
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