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  1. #11
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    Apr 2018
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    Quote Originally Posted by DaveW View Post
    Simply put in your offer. Say you are an investor and this is your best offer to present to the owner.
    Get past this point first and let's see where that takes you. If the vendor comes back with a counter offer then we can talk about the figures that back up your offer. But first get your foot in the door.
    Thanks Dave. As some peace of mind, do you understand why I am low balling with -20% MV offers? It just seems Kiwis have gotten so use to paying the asking price. But as an investor, 20% not only protects my investment against potential market corrections, it makes my profit up front, the renovation and staging is just to sell the house if im flipping, its the initial purchse price that makes my gain, whether i flip or I hold and rent. Its both my profit and also my correction risk mitigation.

    Does that make sense to you? Do kiwi investors still make there gains up front in purchase price, especially given a flattened market in Auck?

  2. #12
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    Apr 2009
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    Quote Originally Posted by OnTheMove View Post
    Thanks Dave. As some peace of mind, do you understand why I am low balling with -20% MV offers? It just seems Kiwis have gotten so use to paying the asking price. But as an investor, 20% not only protects my investment against potential market corrections, it makes my profit up front, the renovation and staging is just to sell the house if im flipping, its the initial purchse price that makes my gain, whether i flip or I hold and rent. Its both my profit and also my correction risk mitigation.

    Does that make sense to you? Do kiwi investors still make there gains up front in purchase price, especially given a flattened market in Auck?
    Yes, many are doing your approach here in NZ it's a numbers game.
    It's up to the vendor to accept or negotiate your offer or not. Willing buyer, willing seller.

  3. #13
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    Apr 2018
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    Quote Originally Posted by DaveW View Post
    Yes, many are doing your approach here in NZ it's a numbers game.
    It's up to the vendor to accept or negotiate your offer or not. Willing buyer, willing seller.
    I really needed the moral support. Thank you.

    It might take 200 offers before a yes. Is that what you meant by a numbers game.

    I think its important to know the agents in the area and simply tell them what you are looking for.That way you will hipefully get a call before it goes to advertising. But even on trademe there are properties stating motivated vendors, yet they list a peak 2017 price, which puts me off. Should I ignore the asking price given they have stated they are must sell motivated vendors?

  4. #14
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    Quote Originally Posted by OnTheMove View Post
    I really needed the moral support. Thank you.

    It might take 200 offers before a yes. Is that what you meant by a numbers game.

    I think its important to know the agents in the area and simply tell them what you are looking for.That way you will hipefully get a call before it goes to advertising. But even on trademe there are properties stating motivated vendors, yet they list a peak 2017 price, which puts me off. Should I ignore the asking price given they have stated they are must sell motivated vendors?
    Yes. Just make sure to have a condition in your offer to protect you against multiple offers being accepted.

  5. #15
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    Apr 2018
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    Quote Originally Posted by DaveW View Post
    Yes. Just make sure to have a condition in your offer to protect you against multiple offers being accepted.
    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.

  6. #16
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    Apr 2009
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    Quote Originally Posted by OnTheMove View Post
    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. .

  7. #17
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    Apr 2018
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    Quote Originally Posted by DaveW View Post
    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.

  8. #18
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    Quote Originally Posted by OnTheMove View Post
    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.

  9. #19
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    Apr 2009
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    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.

  10. #20

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    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.
    "Remember, people will judge you by your actions,not your intentions.You may have a heart of gold -but so does a hard-boiled egg".


 

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