What I am wondering what would you make as your first offer??
TimD a selling agent’s or vendor’s asking price or listing price does not have to correspond to any logic whatsoever. It is a free market economy, so they can ask what they like. Therefore, just because you might get a property for say, $50,000 under the listing price, this may be meaningless if it was overpriced by $80,000 or more, compared to true market worth to start with.
As Buyers Agents we are asked everyday to give our professional opinion on what at property is worth. It is very often one of the main reasons that buyers engage our services. So TimD unfortunately you have not provided enough information for us to say with any degree of certainty.
In relation to establishing our opinion of an Estimated Buying Price we look at 7 key areas:
1.
Market conditions, which take into account:
a. Economic outlook of the general property market, e.g. interest rates, state of the economy etc.
b. Local market issues such as supply and demand.
c. Any other issues of relevance at the time.
2.
Comparable sales, comparing like for like in terms of land & buildings, views etc but making allowance for:
a. Variations in property features.
b. Changes in the market over the time period.
c. If there are no directly comparable sales, then we source other information to help us make an assessment.
d. Any other issues of relevance at the time.
3.
Optimum / alternative uses. We assess whether or not there is any potential for an alternative use of the property that might be suitable for a niche market. These might be, for example (but are not limited to):
a. Redevelopment of the site, possible amalgamation with adjoining properties.
b. For professional use, e.g. medial surgery, etc
c. For alternate use, e.g. bed & breakfast, etc
4.
Restrictions. We make allowance for any restrictions that may have an effect on the price, such as:
a. Resumption of land by a public authority, e.g. road widening, etc.
b. Flight paths.
c. Various easements and rights of carriageway.
d. Heritage listing etc.
e. Any other issues of relevance at the time.
5.
Property features including:
a. Local government zoning of the property.
b. Architectural features.
c. Wow factors. These are intangible factors unique to a particular property, that people have been known to pay a premium for. These might be water views or street appeal. A negative wow factor is also possible – for example, poor layout, tacky renovations, or backing onto a petrol station, school or commuter car park.
d. Proximity to amenities such as shops, school, transport etc.
e. Condition of the property.
f. Size, shape and slope of the land.
g. Any other issues of relevance at the time.
6.
Special conditions. The contract of sale might be subject to particular circumstances, such as:
a. Extended (or reduced) period for settlement.
b. Subject to a tenancy, therefore vacant possession is not offered.
c. Lease back of premises for the vendor.
d. Release of deposit on exchange.
e. Any other issues of relevance at the time.
7.
Other relevant facts and specific instructions that have had a bearing on the determination of the estimate. For instance:
a. Vendor’s preferred method of sale.
b. Vendor’s instructions being contrary to the selling agent’s advice (if known).
c. Particular requirements or instructions relating to the selling agent’s marketing campaign / strategy.
d. Any other issues of relevance at the time.
And any other advice for a first timer in negotiation would be very much welcome.
Yes, once you have done the above then we would be in a better position on how to make an offer............which is a whole 'nother story.
Please feel free to post more details while still not disclosing the property ID details. Cheers.
