[foolsgold99]

I've been watching some NZ property shows just now, Hot property & Property resuce, and 2 things have struck me. Firstly, that Petra Bagust who presents them is very good looking. Secondly and more importantly I guess is a query about how offers are made on houses.

For those that haven't seen the shows, they take a house in NZ that's on the market and not selling, and then tidy it up, paint it etc. In the second half of the show they sell off the property at a auction.

What I was wondering was if a house is on the market for say $250k, what are they really looking for ?

Where we live at present in Scotland, it operates on a offers over system, here at that price, you'd expect to sell for close to $300K whereas in England people seem to make offers below the price.

In one show that I've seen, a house was on the market at $340K, and it sold at auction for $298K and everyone was very happy.

We're looking at houses online just now, and figure we can spend, maybe $450k on a house. Is the price on the advertisement what you would expect to pay, or it higher or lower.

Sorry if this is a bit of a rambling post.

Alan

[Timbo]

If you do a bit of searching on here, you should find a very informative and amusing post by Karl on the subject of house auctions in Nz.
He speaks from first hand experience.

[Beach Kiwi]

We're looking at houses online just now, and figure we can spend, maybe $450k on a house. Is the price on the advertisement what you would expect to pay, or it higher or lower.



It's the asking price, that's all. You either pay it or negotiate a lower one. It's very rare to get gazzumped in New Zealand, and virtually impossible if you've both signed an agreement of sale.

Basically, it's supply and demand. If the house you like has a lot of interested parties then you'll most likely have to pay the asking price, maybe even more if a bidding 'war' breaks out. If no one else is interested in the property then you can probably force the price down.

If the house isn't 'popular' then go in at a low price, but not too low, as you'll just annoy the seller and they may not want to deal with you anymore. On a house of $450k you could probably start at $400, and get it for $420 - 430.

[Moorf]

We had a somewhat confusing scenario the other day which may be of interest to those wanting to know about putting in offers.

We viewed a house that had already had a conditional offer on it. The estate agent said the other offer was conditional on obtaining finance and selling their existing property.

Therefore, we could put in our offer. By doing this the other party was given three days to confirm their offer or our offer would become acceptable as we would have finance in place and no chain.

This "3 day" scenario wasn't one we were aware of and is obviously something worth thinking about when you have an offer in on a property, they may call and tell you to sort it or lose it. :?

Anyone else had this?

Moorf

[Bubbles]

Not quite a Gazzump, but nearly, yeah

John

[Beach Kiwi]

This "3 day" scenario wasn't one we were aware of ...
Anyone else had this?



That sort of situation isn't uncommon, so don't let it bother you too much. You may even find it useful yourself. ;)