Auck seems to be in a bubble plateau, offering 20% below MV.?

[DaveW]

How do you mean Dave? Usually I ask for condition of inspection (if its something I havnt seen in person) and surveying, if its a reno and sell I try to get 60 days early access and develop it so its ready for sale the day of me technically owning it (yes I know thats risky).

Would you put in an offer on a house you havnt seen in person but love the potential of, with condition of inspection and sureying.

Are you saying just add "and no further offers considered"?

Auckland is hard work to make a buck out of at the mo. I like New Plymouth but the prices match Auckland. Wellington is kind of ok because it still has some old houses for the picking.

But I feel safer sticking local and I have strong like for Whangaparao, even if prices are mad.

Keep the conditions minimal like, subject to satusfactiry finance, and builders inspection at the complete discretion of the buyer. Seek legal advice from your lawyer and explain what you are doing.

Your chances would improve if you stay local and view the property prior to making the offer. .

[OnTheMove]

Your chances would improve if you stay local and view the property prior to making the offer. .

When you say chances, do you mean in getting a 20% below MV price?

What Im seeing isnt so much land being over valued, I get land increasing in price. Its flappn houses going up 30%pa, they are liabilities they are meant to depreciate for god sake.

One I saw, the ugliest turd ever, sure it was built well in the 80s for how they wanted, but no other human on earth would want this house or to live in it. But that doesnt stop the value going up, or as oneroof calls it in the RV break down, "Improvement value". What the. They have done nothing to improve the value of the home. Yes its value was 3/5's the total cost of the property price being asked, now thats just MESSED up. You could build a palace in a modern style 99% of the Public would enjoy or not be offended by for 55% of the price of the so called "improvement value" or "house value". This is driving me bonkers.

[DaveW]

When you say chances, do you mean in getting a 20% below MV price?

What Im seeing isnt so much land being over valued, I get land increasing in price. Its flappn houses going up 30%pa, they are liabilities they are meant to depreciate for god sake.

One I saw, the ugliest turd ever, sure it was built well in the 80s for how they wanted, but no other human on earth would want this house or to live in it. But that doesnt stop the value going up, or as oneroof calls it in the RV break down, "Improvement value". What the. They have done nothing to improve the value of the home. Yes its value was 3/5's the total cost of the property price being asked, now thats just MESSED up. You could build a palace in a modern style 99% of the Public would enjoy or not be offended by for 55% of the price of the so called "improvement value" or "house value". This is driving me bonkers.

Yes. And if you buy unseen in another town you cannot trust what the agents say about the neighbourhood, etc. Buyer beware. Agents just want a commission.

Just ignore the rateable valuation it's just a way for the council to maximize the annual property taxes.

Contact a property lawyer and get your offer template sorted.

[DaveW]

You mentioned about 60 days early access. Discuss this with the lawyer also. The vendor will be advised not to accept this because of insurance issues if you're going to do. Holding work when the title is not under your name. You could instead suggest to work on the outside landscape only.

Additionally we talked about protecting yourself from having multiple offers accepted at once. you could do assignment of contract if ever this did happen and you were sure to have a deal 20% below MV you could flip it at 10% below MV before you need to lay out anything. Alternatively you could find a partner to help close the deal.

[Frezzinghot]

Offered 500k on a property today, CV was 570k listed at 600k, property is in one of the best street in the town but needs work, the principal signed the contract with me but knew he didn’t like the offer, at the end of the day I am going to offer what I think it’s worth and not what the agent or company think, market conditions have changed and I am offering what the market is willing to pay. Period.

[DaveW]

What is your estimate of the market value ?

[Frezzinghot]

What is your estimate of the market value ?

Mid to high 500s. The upside is the street, its one of the best, in the best school zones and just a great area. Downside is that its dated and needs a makeover.

[DaveW]

You can be sure of a decent tenant having the good school zone. If the tenant asks for some improvements in the property then you ask for an improvement in the rent to cover the costs.

[OnTheMove]

Offered 500k on a property today, CV was 570k listed at 600k, property is in one of the best street in the town but needs work, the principal signed the contract with me but knew he didn’t like the offer, at the end of the day I am going to offer what I think it’s worth and not what the agent or company think, market conditions have changed and I am offering what the market is willing to pay. Period.

Can I ask what area Freezing?

Yes Dave I see your point on 10% without outlay, almost like a finders fee, although legal fees still would need analysis.

Ok the MRS is deadset on a House on the Hibiscus, my gut is 2020 we will have another correction in Auckland. I cant seem to get her to be rational, Im advising her there will be other properties. Her parents are aging and they love NZ, they want 3 months a year in NZ. Im fine with all that. I just dont want to see my Mrs lose her 170k deposit in a crash so Im trying to advise her to offer below Market value, if NO, then Walk Away.

The property was valued in 2017 at $720k at the peak of the market. It is a subdivision with the next door property sold in March for $635k, identical property but more land so should be worth more, a large sold house up the nice quiet area sold for $670, it has nice tiles and solid brick, again much bigger section. I estimate the Market Value to be approx $640k, they have redone the kitchen to the original 2001 spec, it has wood grain Lino in kitchen and living areas (shudder, but looks ok). Thermal report shows cement panel cladding is doing a good job. Has a huge 2.5 garage (the entire house foot print). Downsides, think corregated rood, it gets FLAPPN hot and no heat pump, overall it just feels like a cheap but not bad quality subdivision, identical houses.

The Neighbourhood is good and quiet.

It goes to auction next weekend. What would be a price that may protect her a bit? If its not accepted, walk away? Once it goes to auction we cannot do "subject to inspection" can we?

Im torn, I wish I had bought the one next door and left the tiles, even the kitchen was ok, so this one saying its been renovated, yeah, but from a profit perspective they have degraded the value imo.....

Im sure vendor will want the qv of $710k~ despite next door selling for $635k and a much more solid house up the culdesac going for $670k (bargain).

So if I said $630-640k subj to inspection I think they will say no and let it go to Auction.

[OnTheMove]

Agent just confirmed they want the QV they had redone in 2017 at the height of the market, WTF are agents and some vendors smoking? A property identical next door with 100sqm more land sold for $635k......

Its like we are in the period where people are trying to offload 2017 prices in 2019 and wont budge. What do you do? Walk away?