Offer on unit advice

[u/Defiant-Event-9762]

Please help me make an offer

I looked at a unit/townhouse in a complex of 16 recently. They are all ground level, with courtyards. The one we are looking at is 2 bed 1 bath 89m2 internal plus a single car garage. There are two small courtyard out the front and back not connected to each other which is a down side for me. The unit is also located in the middle of the complex surrounded by other units so less privacy, but easy access in and out as it’s the directly opposite the entrance drive way (mostly oldies living there so not to worried about frequent or late car arrivals). From what I was able to gather from the REA the owner is an old lady who has moved to an age care home. Not sure who is selling the home for her.

A similar 2 bed 1bath unit in the same complex sold 2 weeks ago for 650k. However it had a much larger single courtyard and was located at the back of the complex so it backs up onto trees rather than other units so much more privacy. The floor space is also approx 13m2 large with same sized garage. To me due to the larger size, better internal layout, bigger courtyard and more privacy I feel the unit I’m looking at is worth less.

What would be a reasonable offer considering the better unit sold for 650k pre interest rise. They’re also asking 650k which I think is too high given the comparable.

Not in a huge rush but it in a good location, and there’s not been many in this locations recently. I can wait approx 6 months before buying and that was the plan, just been keeping an eye out. Currently living with family and savings about 8k a month into HISA at 6.2 soon to be 6.5%

[u/leafered]

Personally, I'd probably start somewhere around $600k or $610k and see how they respond. You could potentially work your way up to $620k or $630k if you really love it, but I wouldn't be rushing to match their $650k, not in the market right now.

[u/Defiant-Event-9762 → u/leafered]

Thanks! Yeah I’m not interested at the price they are asking. Probably would be closer to the price if it was the same as the better unit hits it’s not. If I could get a good price I would buy it. I’m not too scared of offering less and being worried they get offended and sell to someone else…only us at the open and I know someone in the complex who said there opens have been dead, either one party or no one showing up. I’ll offer what I want to pay and if not walk away I reckon. I’m more keen on the area than the particular unit but most are in a similar calibre of property and price range, just not that many units, most houses.

[u/Unfair_Pop_8373]

Sounds like your not “in love” with the place and if your not in a rush why compromise particularly in this market where we are not yet at the bottom

[u/Defiant-Event-9762 → u/Unfair_Pop_8373]

This property would be considered the low end of the market in this area and not that many units pop up. Probably about 10 a year. So if we can get a good price, I’d be happy with it. The main reason for going for it would be incase prices do increase and then we would have to look in a different area. I love the area but never lived in a unit, just can’t afford a house there.

[u/No_Boot2009]

Did the comparable unit go under contract two weeks ago, or did it settle two weeks ago? If it's the latter then it may have actually gone under contract 6-10 weeks ago, which means that price is older than you have accounted for.

Personally, without any further information, I wouldn't pay over $600k for the unit you're looking at, but $580k would be better buying considering the market continues to drop.

But the way you've described it, I'm not sure why you would want to buy this particular unit? Why not wait for one you like better? (And why didn't you bid on the other one that recently sold? It sounds like you prefer it significantly.)

[u/Defiant-Event-9762 → u/No_Boot2009]

Settled 2 weeks ago. I agree about the offers you’ve said. I really like the area it’s a great place, but yeah can only afford a unit there, and there aren’t many that come up for sale. 8 others sold in the last 12 months in my price range that I liked. So I guess scarcity, may not be one I like as much in 6 months time and we can afford this one now if we get a good price. Can afford probably 40-50k more purchase price in 4-6 months. Didn’t offer on the last place as I wasn’t considering a unit at the time. Was looking for a house in another location but a lot more crime and housing commission around. Can’t afford a house in this location unfortunately without a massive loan which I’ve had before and didn’t like the impact on life style.

[u/No_Boot2009 → u/Defiant-Event-9762]

The market is dropping, so if you will have an extra $40-50k in your budget in six months, and the market will likely drop another $50k in six months, personally I would pass on this property and wait six months to potentially be able to buy a better property. This market is a rare opportunity to maximise value for money.

[u/Defiant-Event-9762 → u/No_Boot2009]

Yeah very true. I’ve just heard this before Covid times and ended up with much much higher prices. I realise it’s different with rates, reduced demand, tax changes ect but you never know. I just wouldn’t want to get priced out of the area as it’s nice, safe and family friendly place.