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Most buyers still shop on price

Discussion in 'Real Estate' started by Jacque, 1st Sep, 2006.

  1. Jacque

    Jacque Team InvestEd

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    Despite all the POA's, express sale and "no price at all" ads that I regularly come across, as well as auctions with absolutely no price guide, I am obligated to follow up on behalf of my clients, which I do.

    However, it still annoys me that, even after a phonecall and a chat to the REA who's listed the property, the price range is so large to be laughable (a recent one was a guide somewhere between $750-950K) or it's like pulling teeth to get it out of them.

    In my experience, most home buyers still shop on price and will immediately discount (even on the net) properties that don't at least show some price range. What do others think?
     
  2. Jenny

    Jenny Well-Known Member

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    Yeah, I immediately pass over any advertising that doesn't have a price tag. I can't be bothered playing games.
     
  3. Glebe

    Glebe Well-Known Member

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    I'm the same. Time is too short for games.
     
  4. Chris.R_WA

    Chris.R_WA Well-Known Member

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    I thought it was just me doing this!! Maybe I'm not lazy after all...just efficient;)
     
  5. yeslist

    yeslist Member

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    I can't stand it. If you want to sell something at least put your best price on it instead of letting greed get in the way. Price ranges are just speculation in my book. Someone else can have it.
    Simon
     
  6. Leandro

    Leandro Well-Known Member

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    When my wife and I were looking for our PPOR we didn't really bother with places that didn't have a price, unless we were really interested. Buts i would imagine as stated, that is a lot of potential buyers who would be lost.
     
  7. shake-the-disease

    shake-the-disease Well-Known Member

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    750-950? I didn't think such a range was even legal :confused: In Victoria the upper limit must not exceed the lower by more than 10%.

    That aside, POA frustrates me but only stops me investigating further if I'm tyre kicking.
     
  8. Jacque

    Jacque Team InvestEd

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    It is, Leandro, however from what I've found the ones without any tags at all tend to be overpriced anyway. Overly ambitious vendors testing the market, usually, or gathering pre-auction interest.
     
  9. Jacque

    Jacque Team InvestEd

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  10. shake-the-disease

    shake-the-disease Well-Known Member

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  11. Giddo

    Giddo Active Member

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    I never bother with POAs or stupid price range properties either.

    At least with a prop that has a price on it you can mentally subtract 5-10% and come up with the real expected price.
    i wonder if any REAs are reading this?
     
  12. jenpalex

    jenpalex Active Member

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  13. Rick Otton

    Rick Otton Member

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    Sell on price Buy on terms

    I think it is crazy price and location dictate peoples future progress or hinder their progress when it comes to real estate

    Who wants to buy in bowral at the moment its cold and therefore definitely is not the right location but a student calls today from an house in bowral and says is 1.5 million a good price for a house in bowral?

    Don't know what are the terms I say.....we assume the loan and he leaves it fully furnished with a choice of one of three cars to stay in the garage

    To get a house with no loan liability stamp duty and no cash invested (with a car) except next months payment one has to ask the question
    1.........where does location count
    2.........how importance is the price

    Rick Otton - real estate investing in australia and positive cash flow investing methods
     
  14. Smartypants

    Smartypants Well-Known Member

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    Is 1.5 million the value of the house or the remaining loan amount that has to be paid?

    Possibly both.

    Either way, wouldn't the repayments be fairly substantial?
     
  15. Rick Otton

    Rick Otton Member

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    You are correct

    We have an interesting market in that many people refinanced to the max in 2002-2003 now prices have come back and they can't sell without bringing money to the settlement table.......

    1/ you take these as your future buy and holds
    2/ you offer them back out to the market where you assign the completed transaction
    I hope the above makes sense

    The people who get these now will be the people I believe others will envoy in years to come
    Rick Otton - real estate investing in australia and positive cash flow investing methods
     
  16. johnnyb

    johnnyb Well-Known Member

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    Sorry Rick (welcome to the forum by the way!), lost me completely there on point 2. I know almost nothing about wraps/lease options, etc, so you'll have to excuse my ignorance of the language involved. What does "assign the completed transaction" actually mean.

    John.
     
  17. Rick Otton

    Rick Otton Member

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    Thanks John

    John you can use an assignment form create the transaction and sell or offer the transaction to someone else
    i.e. this morning one of the students was offered a villa worth 230k with a loan attached for 270k.....200 a week neg geared.....I suggested they put it together and offer it to the market for 5k

    Point is this particular villa is a little upside down but would someone in the market place see value in paying 5k to own their own villa and have a loan already in place...

    (by the way if so let me know and I'll tell the boys)

    I will be writing a detailed paper on this John as soon as I finish the October bootcamp eventand I'll make sure you get a copy...

    Rick Otton - real estate investing in australia and positive cash flow investing methods
     
  18. johnnyb

    johnnyb Well-Known Member

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    Rick,

    Thanks for the further explanation. It is bit clearer, but I look forward to your paper and will hold further questionas will then.

    John.