I recently inspected a home in Osborne St, Williamstown. The asking range for the house was $940,000-$980,000. The home is due for auction April 10, 2010.
The home is being offered by Compton & Green Real Estate, Williamstown. It has three bedrooms, reasonable size living area and large kitchen. The home has dated (according to my standards) and is in need of a little renovation. It has mock terra cotta tiles and mock bakelite switches.
An offer was placed between the asking range but was not accepted. Unfortunately the vendor said that he/she wanted substantially over the $980,000. Perhaps in this case the vendors should increase their selling range and put it over the $980,000.
I have learnt something from the quoted range. It's basically not always true and vendors always want an extra 10% to 20% on top. As a buyer, I would much more prefer the vendor be upfront with the price range. That way I know whether I am in the running or not.
Just to sum up, the agent we dealt with was excellent to deal with. He was courteous, polite and considerate.
Update:
Auction April 10, 2010
House sold today for $1,212,500.00
I guess that's what the owner meant by substantially over the asking price. $232,000 over the asking range.
Tuesday, March 30, 2010
Monday, March 29, 2010
Keep Up, The Price Just Went Up
Found a really nice home for sale on the internet the other day. It is in Ormond Rd, Ascot Vale. Auction date scheduled for April 24, 2010.
The house is on a large allotment and is elevated. It looks as though it has been renovated and is close to transport and shopping strips. The only bad thing about the house is that there are no cupboards in the home i.e linen, built in robes or storage.
The price of the home was originally advertised as $700,000 to $770,000. But doing a recent search on the home has shown that the price has just jumped up to $750,000 to $820,000.
I guess there must have been a great amount of "buyer interest".
I wonder what the house will sell for on auction day.
Update: April 6, 2010
The Property Manager indicated that vendors were interested in taking offers prior to auction. Offers were to be put in by end of business today. The agent said to put in a strong offer between $900,000 and $950,000.
So a house that originally was advertised between $700,000-$770,000 is now asking for offers in the vicinity of $900,000 to $950,000.
I wonder what offers the vendors have had. I forgot to mention that the vendors were not letting people in to inspect the home anymore but were accepting offers.
House sold for just under $1,020,000. I guess we were never in the running afterall.
The house is on a large allotment and is elevated. It looks as though it has been renovated and is close to transport and shopping strips. The only bad thing about the house is that there are no cupboards in the home i.e linen, built in robes or storage.
The price of the home was originally advertised as $700,000 to $770,000. But doing a recent search on the home has shown that the price has just jumped up to $750,000 to $820,000.
I guess there must have been a great amount of "buyer interest".
I wonder what the house will sell for on auction day.
Update: April 6, 2010
The Property Manager indicated that vendors were interested in taking offers prior to auction. Offers were to be put in by end of business today. The agent said to put in a strong offer between $900,000 and $950,000.
So a house that originally was advertised between $700,000-$770,000 is now asking for offers in the vicinity of $900,000 to $950,000.
I wonder what offers the vendors have had. I forgot to mention that the vendors were not letting people in to inspect the home anymore but were accepting offers.
House sold for just under $1,020,000. I guess we were never in the running afterall.
I'm Asking What My Neighbor Asked
Fletchers Real Estate in Eltham are selling a beautiful home in Natalie Mews, Eltham.
The home is set on a large block of land approx. 1,600 sq m. It is described as having "architectural finesse" with an " epitome of sheer design". The home is very spacious and has lots of modern conveniences. It has 4 bedrooms, study and home theater just to mention a few.
I contacted the agent to request the price of the home. The agent said that the vendors were not quoting. Basically, the conversation stopped there on my end. The agent did go on to say that other houses in the area sold upwards of $800,000. The agent also mentioned that the owners were genuine sellers and were willing to take offers before auction.
So how much does one offer for a home with no quoted range?
Update: House sold for $1,143,000.
The home is set on a large block of land approx. 1,600 sq m. It is described as having "architectural finesse" with an " epitome of sheer design". The home is very spacious and has lots of modern conveniences. It has 4 bedrooms, study and home theater just to mention a few.
I contacted the agent to request the price of the home. The agent said that the vendors were not quoting. Basically, the conversation stopped there on my end. The agent did go on to say that other houses in the area sold upwards of $800,000. The agent also mentioned that the owners were genuine sellers and were willing to take offers before auction.
So how much does one offer for a home with no quoted range?
Update: House sold for $1,143,000.
Monday, March 22, 2010
Down to Earth
I spoke with an agent from Collins Simms, Clifton Hill yesterday. I shared my frustration of how impossible it is to find a home that sells within my price range on auction day. I told him that agents/vendors advertise homes for one price and that on auction day it sells for $200,000 over the quoted range, therefore, making it impossible to find an appropriate home. The agent was very encouraging. He said that many people were experiencing the same problem as I. He also went on to say how difficult agents found it to quote homes now a days due to the strong demand in the market. He said that he too has seen houses advertised for one price only to have it sell for way over the reserve. I think the price of homes are exceeding every ones expectations. I guess it basically comes down to under supply. There are too many people looking to buy a house and not enough houses to sell or not enough homes on the market.Basically it comes down to too much demand and not enough supply. This is bound to increase home prices.
Sunday, March 21, 2010
Would Anyone Like To Place Their Bid?
A home in Smith Ave, Williamstown was being auctioned over the weekend. The agent was Hocking Stuart, Williamstown. The original quoted range of the home was advertised at $700,000 to $770,000. On auction day the property was passed in with the vendor's bid at $700,000. The Smith Ave, house did not sell between the quoted range. The asking price of the house in now over the original and unsuccessful selling range at the new price of $785,000.
Upcoming Auction This Weekend - Advertised Within My Price Range - I have Written It Off Already
This will be a very short post. The property which is in Parker Street Williamstown is being advertised by a Williamstown real estate agent who had admitted to me the property which I had been inspecting and currently advertised around 950k to 1050k was actually sold for 950k three years ago. This particular agent, in my opinion, was less than honest on yet an earlier occasion whilst I was inspecting a property in Ann Street Williamstown, as I had asked him (very clearly and in no uncertain terms) if there were any known high density development proposals in the vicinity of the Ann Street area. Well well, he neglected to tell me about the controversial 12 to 16 story proposal [yes it's a Justin Madden story again] to build a massive monstrosity almost directly opposite the Ann St property. The development also threatens to dwarf the nearby Time-Ball Tower and has upset local residents. That is another post in-itself for another day.
I will be proactive and avoid a driving all the way to Williamstown for no other purpose than to engage in a futile time wasting exercise.
I will be proactive and avoid a driving all the way to Williamstown for no other purpose than to engage in a futile time wasting exercise.
Friday, March 19, 2010
Going, Going, Gone | Let the Disappointment At Auction Continue
Today I went to an auction in Raleigh St, Thornbury. The house was an old brick house in need of much work. EJ Love Real Estate-Preston was the agent. The selling price was advertised at $550,000 - $600,000. There was an excellent turn out for the auction on the day. The house was close to schools, shops and transport.
The house sold on auction day for $850,000. That's $200,00 over the price range quoted.
I feel that I have wasted my time yet again. If the quotes given were more accurate, I wouldn't have wasted my time ringing council, architects and attending open house inspections.
As we were walking away, I overheard another couple say what a waste of time it was going to the auction and that they would never had wasted their time going to the auction had the agents/vendor price range been more accurate.
That wasn't the only disappointment today. Earlier this morning we had attended an auction in Clifton Hill. We attended because the estate agent indicated that the property which was originally advertised at 1 million to 1.1 million had been marked down to a price range of 920,000 to 1,000,000 due to lack of buyer interest. My partner and I were willing to pay around 950,000 (or a little more) after taking into account that the property needed a substantial amount of repair and renovation. The auction started rather high with a vendor bid of 950,000 which got our backs up a little and another family present also seemed to get their backs up after the high vendor bid; so neither of us placed any bids. There was only one subsequent bid of 960,000 and with that one and only offering the property was passed in. Later we learned that further negotiations yielded another offer of 1,030,000 which wasn't enough to meet the reserve of 1,070,000. So in other words, although the property's price range had been lowered, the vendor's reserve probably hadn't actually moved at all. It was nothing but an exercise in manipulation to alter the perceived range and generate some buyer interest with a strategy for creeping the property price back up to the original reserve figure.
The house sold on auction day for $850,000. That's $200,00 over the price range quoted.
I feel that I have wasted my time yet again. If the quotes given were more accurate, I wouldn't have wasted my time ringing council, architects and attending open house inspections.
As we were walking away, I overheard another couple say what a waste of time it was going to the auction and that they would never had wasted their time going to the auction had the agents/vendor price range been more accurate.
That wasn't the only disappointment today. Earlier this morning we had attended an auction in Clifton Hill. We attended because the estate agent indicated that the property which was originally advertised at 1 million to 1.1 million had been marked down to a price range of 920,000 to 1,000,000 due to lack of buyer interest. My partner and I were willing to pay around 950,000 (or a little more) after taking into account that the property needed a substantial amount of repair and renovation. The auction started rather high with a vendor bid of 950,000 which got our backs up a little and another family present also seemed to get their backs up after the high vendor bid; so neither of us placed any bids. There was only one subsequent bid of 960,000 and with that one and only offering the property was passed in. Later we learned that further negotiations yielded another offer of 1,030,000 which wasn't enough to meet the reserve of 1,070,000. So in other words, although the property's price range had been lowered, the vendor's reserve probably hadn't actually moved at all. It was nothing but an exercise in manipulation to alter the perceived range and generate some buyer interest with a strategy for creeping the property price back up to the original reserve figure.
Wednesday, March 17, 2010
And The Under Quoting Continues
Every property inspection reveals a dismal pattern of higher than quoted prices which in my view amounts to nothing less than under quoting. Let me explain:
I went to an inspection in Ivanhoe today (which was the first scheduled inspection) for a 1930's home. True to form the agent's asking price range of $900 000 to $1000 000 had already become up to and around $1,100 000 to $1,200 000. This according to the agent was "based on our interest today". This seems strange to me, because this is a newly listed property and I was the second person to enter the property and inspect it.
Just to give you an update on this property. The house sold over the weekend (27th April, 2010) and guess how much it sold for? It sold for $1,320,000. That's 32% over the highest quoted range.
Real Estate Guidelines for real estate salespeople - price advertising and underquoting published by Consumer Affairs Victoria states "An estimated selling price is determined by a salesperson based on their experience, skill and knowledge of the market. It must be a realistic estimate of the likely selling price of a property at the time the agency authorities signed. A salesperson must use the best information available at that time to make the estimate and, at a minimum, take into account the latest comparable property sales and price trends".
I guess the agent was a little inexperienced when they gave me the following information. "Based on recent sales in the area we anticipate buyer interest to be in the $900,000 - $1,000,000 price range. We are experiencing a rising market at the moment so there is a chance that the price could be higher if driven by competition".
I went to an inspection in Ivanhoe today (which was the first scheduled inspection) for a 1930's home. True to form the agent's asking price range of $900 000 to $1000 000 had already become up to and around $1,100 000 to $1,200 000. This according to the agent was "based on our interest today". This seems strange to me, because this is a newly listed property and I was the second person to enter the property and inspect it.
Just to give you an update on this property. The house sold over the weekend (27th April, 2010) and guess how much it sold for? It sold for $1,320,000. That's 32% over the highest quoted range.
Real Estate Guidelines for real estate salespeople - price advertising and underquoting published by Consumer Affairs Victoria states "An estimated selling price is determined by a salesperson based on their experience, skill and knowledge of the market. It must be a realistic estimate of the likely selling price of a property at the time the agency authorities signed. A salesperson must use the best information available at that time to make the estimate and, at a minimum, take into account the latest comparable property sales and price trends".
I guess the agent was a little inexperienced when they gave me the following information. "Based on recent sales in the area we anticipate buyer interest to be in the $900,000 - $1,000,000 price range. We are experiencing a rising market at the moment so there is a chance that the price could be higher if driven by competition".
Sunday, March 14, 2010
Auctions - Open Houses - Over the weekend
Over the weekend I attended 2 auctions and 1 open house.
The first house was being auctioned in Mountainview Parade, Rosanna. The house was a double fronted house and was last renovated about 10 years ago. It had "million dollar views" and was located close to schools, university, hospitals and train stations. It was a three bedroom home with 1 bathroom and 1 car garage. The real estate agent was Hocking Stuart, Ivanhoe .
When we arrived at the house, we were overwhelmed by the amount of people who had turned up for auction day. My partner and I decide to place bets on what it would sell for. I thought it would sell for $830,000 and my partner said it would sell for $803,000. The auction started with an opening bid of $580,000. The agent accepted the bid and then accepted increases of $10,000. Before we knew it the price of the home was in the high $700,000's. The home eventually sold for $828,000. The agent valued the home at $630,000-$680,000.
The second house was in Landscape Drive,Doncaster East. The home had no price range advertised on the internet but when requested the agent replied by writing "We are looking at offers above $700k going to Auction"
The house was auctioned by Philip Webb, Doncaster East. The house was on a corner block. It had 4 bedrooms, 2 bathrooms and a two car garage. The house was 33 years old which meant it required a lot of renovation. The house was close to The Pines, schools, transport and parks. It was family home with a huge rumpus area. The auctioneer was late in starting the auction due to late arrivals. Finally the auction was underway. The opening bid was a vendor's bid for $690K. Ongoing bids were to go up by $20,000. I think the $20,000 bids put people off a little because it took a little while for people to place a second bid. Finally someone put up their hand and offered $710,000. This allowed the auction to proceed. The house eventually sold for $820,000.
The open house I went to see was in Parker St, Williamstown. The house is currently being advertised for $950,000 to $1050,000. We spoke to the staff from Hocking Stuart, Williamstown. The real estate agent mentioned that the house sold three years ago for $950,000. We therefore asked if the house was being under quoted and he said no. If the owners bought the property at $950,000, why would they quote $950,000 to $1,050,000 three years later?
It will be very interesting to see what the house sells for in the 2 weeks.
The first house was being auctioned in Mountainview Parade, Rosanna. The house was a double fronted house and was last renovated about 10 years ago. It had "million dollar views" and was located close to schools, university, hospitals and train stations. It was a three bedroom home with 1 bathroom and 1 car garage. The real estate agent was Hocking Stuart, Ivanhoe .
When we arrived at the house, we were overwhelmed by the amount of people who had turned up for auction day. My partner and I decide to place bets on what it would sell for. I thought it would sell for $830,000 and my partner said it would sell for $803,000. The auction started with an opening bid of $580,000. The agent accepted the bid and then accepted increases of $10,000. Before we knew it the price of the home was in the high $700,000's. The home eventually sold for $828,000. The agent valued the home at $630,000-$680,000.
The second house was in Landscape Drive,Doncaster East. The home had no price range advertised on the internet but when requested the agent replied by writing "We are looking at offers above $700k going to Auction"
The house was auctioned by Philip Webb, Doncaster East. The house was on a corner block. It had 4 bedrooms, 2 bathrooms and a two car garage. The house was 33 years old which meant it required a lot of renovation. The house was close to The Pines, schools, transport and parks. It was family home with a huge rumpus area. The auctioneer was late in starting the auction due to late arrivals. Finally the auction was underway. The opening bid was a vendor's bid for $690K. Ongoing bids were to go up by $20,000. I think the $20,000 bids put people off a little because it took a little while for people to place a second bid. Finally someone put up their hand and offered $710,000. This allowed the auction to proceed. The house eventually sold for $820,000.
The open house I went to see was in Parker St, Williamstown. The house is currently being advertised for $950,000 to $1050,000. We spoke to the staff from Hocking Stuart, Williamstown. The real estate agent mentioned that the house sold three years ago for $950,000. We therefore asked if the house was being under quoted and he said no. If the owners bought the property at $950,000, why would they quote $950,000 to $1,050,000 three years later?
It will be very interesting to see what the house sells for in the 2 weeks.
Wednesday, March 10, 2010
Not Quoting At The Moment.
This is the second time I have encountered a real estate agent (requesting a price for a house) who has refused to quote on price.
The first time was with ASL Real Estate agents in Doncaster. My partner emailed to request a price on a house advertised for auction. The agent called back the next day and said that they were instructed by the vendor not to give out prices. I spoke to her and told her that if she wasn't willing to give me a price then I wasn't willing to show interest in the property. She then said that the Buckingham Crescent, Doncaster property was to fetch $700,000 to $770,000. I did not attend open inspections for this house. The agent continues to send Section 32's and updates on the property.
This time I saw a house in Duke St, Brunswick East. I rang Hocking Stuart, Brunswick. The receptionist answered and put me on hold. She said that they weren't quoting as yet. I asked why and she said that the Property Manager didn't give her a reason why they just weren't quoting.
How do vendors expect to sell their house? How do the agents expect prospective buyers to know whether they are in that price range or not?
This all reminds me of a time when a house in my street was for sale in 2005. I was curious to see how much the town house in my street would sell for. I approached the real estate which was Thompson, Calton and requested a price on the home. The Property Manager said that they were taking the property to auction and weren't giving out prices. I asked at what range they would start the auction and again she said she didn't know. I took a different approach and explained that I was not looking to buy but in fact was looking to sell my house which was in the same street. She then said "We will be starting the auction at $936,000. The townhouse didn't sell on the day of the auction. Maybe that's because nobody knew whether they were in that range.
The first time was with ASL Real Estate agents in Doncaster. My partner emailed to request a price on a house advertised for auction. The agent called back the next day and said that they were instructed by the vendor not to give out prices. I spoke to her and told her that if she wasn't willing to give me a price then I wasn't willing to show interest in the property. She then said that the Buckingham Crescent, Doncaster property was to fetch $700,000 to $770,000. I did not attend open inspections for this house. The agent continues to send Section 32's and updates on the property.
This time I saw a house in Duke St, Brunswick East. I rang Hocking Stuart, Brunswick. The receptionist answered and put me on hold. She said that they weren't quoting as yet. I asked why and she said that the Property Manager didn't give her a reason why they just weren't quoting.
How do vendors expect to sell their house? How do the agents expect prospective buyers to know whether they are in that price range or not?
This all reminds me of a time when a house in my street was for sale in 2005. I was curious to see how much the town house in my street would sell for. I approached the real estate which was Thompson, Calton and requested a price on the home. The Property Manager said that they were taking the property to auction and weren't giving out prices. I asked at what range they would start the auction and again she said she didn't know. I took a different approach and explained that I was not looking to buy but in fact was looking to sell my house which was in the same street. She then said "We will be starting the auction at $936,000. The townhouse didn't sell on the day of the auction. Maybe that's because nobody knew whether they were in that range.
Tuesday, March 2, 2010
How Much is That House In The Window?
What is going on with service providers in the housing resale market?
I wrote to LJ Hooker asking for a price on a house in Frensham Rd, Macleod. There was no price advertised on the internet so I had no choice but to write in. This was the agents response:
"With this property we have specific instruction from the Vendor not to quote a price or a price range. However if you contact me or leave a contact number I can discuss the conditions of sale and possible development on this property. Also I have a list of recent sales in the local area that might help."
As a buyer how am I expected to buy a house if I am not given a price? The agent didn't even provide an expected price range. Is it $500,000, $800,000 over $1,000,000.
Is this an acceptable response? I am not a developer. I am just looking for somewhere to live.
So am I able to bid on this property? Who knows? Certainly not me.
I wrote to LJ Hooker asking for a price on a house in Frensham Rd, Macleod. There was no price advertised on the internet so I had no choice but to write in. This was the agents response:
"With this property we have specific instruction from the Vendor not to quote a price or a price range. However if you contact me or leave a contact number I can discuss the conditions of sale and possible development on this property. Also I have a list of recent sales in the local area that might help."
As a buyer how am I expected to buy a house if I am not given a price? The agent didn't even provide an expected price range. Is it $500,000, $800,000 over $1,000,000.
Is this an acceptable response? I am not a developer. I am just looking for somewhere to live.
So am I able to bid on this property? Who knows? Certainly not me.
Monday, March 1, 2010
That'll Be An Extra $50,000
A house in Crofton Ave, Williamstown was advertised between $750,000 - $800,000. On the 13th of February I attended the open house inspection. I didn't even get to the front door when the agent said that the price of the home had just gone up $50,000. The house was now re-advertised for $800,000-$850,000.
The house was near the beach and in quite good condition although it did require a few cosmetic changes.
I did attend this auction. There were 5 bidders in total. To be fair the opening bid was for $750,000 which was accepted by Williams Real Estate but the price quickly rose past $850,000. The house was sold for $889,000.
The house was near the beach and in quite good condition although it did require a few cosmetic changes.
I did attend this auction. There were 5 bidders in total. To be fair the opening bid was for $750,000 which was accepted by Williams Real Estate but the price quickly rose past $850,000. The house was sold for $889,000.
Underquoting
I attended an open house on Thursday 18th of February in Cumberland Ave, Balwyn North. The house was being sold by Hocking Stuart and was advertised for $770,000- $830,000. I rang the Balwyn office to confirm inspection times and at the same time I asked the Property Manager if the price being quoted was really "the price". I was getting tired of going to open houses only to see the house sell for $100,000 over the quoting price at auction. I didn't want to waste my time nor did I want to waste the agents or vendors time. The agent reassured me that the quoted price was correct and that although he could not control what bidders did on the day of the auction, the reserve was set between the $770,000 and $830,000.
The house was set in a nice leafy street, it was on an elevated block of land 668sqm and it was reasonably close to Greythorn Primary School, Westfield Shopping Centre and Elgar Park. The house for sale required renovation. It had an old green "funky" kitchen, large front windows and creaky floors. Pantry was covered by curtains and the bedrooms were dark and in need of attention. Laundry was awkwardly placed in the center of the home. Based on the homes state, the price quoted was reasonable for the area but still a little on the high side, considering the fact that the house required a lot of renovation (by my standards anyway).
The auction was set for the 27 of February 2010. A very busy day for auctions. I did not attend the auction simply because I did not believe the house was going to sell for the quoted price, and I was right. Guess how much the house sold for? $1,080,000.
The house was set in a nice leafy street, it was on an elevated block of land 668sqm and it was reasonably close to Greythorn Primary School, Westfield Shopping Centre and Elgar Park. The house for sale required renovation. It had an old green "funky" kitchen, large front windows and creaky floors. Pantry was covered by curtains and the bedrooms were dark and in need of attention. Laundry was awkwardly placed in the center of the home. Based on the homes state, the price quoted was reasonable for the area but still a little on the high side, considering the fact that the house required a lot of renovation (by my standards anyway).
The auction was set for the 27 of February 2010. A very busy day for auctions. I did not attend the auction simply because I did not believe the house was going to sell for the quoted price, and I was right. Guess how much the house sold for? $1,080,000.
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