Jump to content

Negotiate?


Recommended Posts

23 minutes ago, Aussiebird said:

Just a quick question,

Is it quite common to negotiate house prices when buying in Australia?  We have rented before but never purchased, so just wanted a heads up for future reference.

Thank you. Xx

Yes, it most certainly is OK and normal to do so.

Also, buying a house there is so much easier and simpler than here in the UK, and much less stressful.

  • Like 2
Link to comment
Share on other sites

23 minutes ago, AliQ said:

Yes, it most certainly is OK and normal to do so.

Also, buying a house there is so much easier and simpler than here in the UK, and much less stressful.

Oh that's so good to hear!! I was always under the impression that it was firm that the advertised price was what you pay, not negotiable. 

Do the agents generally advisewhat price to negotiate or leave it up to the buyer? Not knowing the system in Oz i would want a push in the right direction and not end up offending a seller!!

What sort of fees would be paid and how long do purchases usually take (WA)?

X

Edited by Aussiebird
Link to comment
Share on other sites

1 hour ago, Aussiebird said:

Oh that's so good to hear!! I was always under the impression that it was firm that the advertised price was what you pay, not negotiable. 

Do the agents generally advisewhat price to negotiate or leave it up to the buyer? Not knowing the system in Oz i would want a push in the right direction and not end up offending a seller!!

What sort of fees would be paid and how long do purchases usually take (WA)?

X

The agent generally advises the seller on a "market" price, then it's up to a buyer to make an offer, the agent will pass that onto the seller, and then the offer price may backwards and forwards a few times until both parties are happy, or one party decides to walk away.

Not sure about fees , we sold two years ago and will be buying again as soon as we return.

Look up REIA, Australian Real Estate, I think their site lists fees etc.

 

 

Link to comment
Share on other sites

10 minutes ago, AliQ said:

The agent generally advises the seller on a "market" price, then it's up to a buyer to make an offer, the agent will pass that onto the seller, and then the offer price may backwards and forwards a few times until both parties are happy, or one party decides to walk away.

Not sure about fees , we sold two years ago and will be buying again as soon as we return.

Look up REIA, Australian Real Estate, I think their site lists fees etc.

 

 

That's great, thank you AliQ. 

Link to comment
Share on other sites

3 hours ago, Aussiebird said:

That's great, thank you AliQ. 

The agent won't advise you what to offer generally.  I believe once your offer has been accepted if you back out you will have to pay 0.2% of the asking price.  

 

Link to comment
Share on other sites

Real estate laws and practices can vary somewhat  between states so it is a good idea to check out the Consumer Affairs website for the state in which you will be buying.   They will all have a section on buying property.  This, for example, is the one for New South Wales and includes the topic of "Making an offer":   https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property

Link to comment
Share on other sites

52 minutes ago, ali said:

The agent won't advise you what to offer generally.  I believe once your offer has been accepted if you back out you will have to pay 0.2% of the asking price.  

 

I haven't heard that before.

Any rules depend on the state you are in. 

Link to comment
Share on other sites

1 hour ago, ali said:

The agent won't advise you what to offer generally.  I believe once your offer has been accepted if you back out you will have to pay 0.2% of the asking price.  

 

If it's just a verbal offer then there's no penalty for pulling out, in any state, AFAIK.

If you've bid at auction, then that's a whole different story.  Once your bid is accepted, you've committed irrevocably to the purchase, and there will be big penalties if you pull out.

Link to comment
Share on other sites

5 hours ago, Marisawright said:

If it's just a verbal offer then there's no penalty for pulling out, in any state, AFAIK.

If you've bid at auction, then that's a whole different story.  Once your bid is accepted, you've committed irrevocably to the purchase, and there will be big penalties if you pull out.

Luckily not many auctions in WA. In my opinion that's what's kept the prices in check. I've seen a few programs on auctions and the auctioneer whips up a feeding frenzy and there are always plants in the audience pushing the price along.

I have a couple of friends trying to sell properties at the moment. One has a lovely house with sea views, asking $800,000 and they've thought they sold it twice. Both times it fell through as buyers couldn't get the mortgage. They think they have another buyer at the moment and are waiting for them to get finance. They dropped the price from 820,000 as they are building new and will get a good government grant if they get the pad down before December.

Link to comment
Share on other sites

  • 2 weeks later...

In the case of buying a house then until the contract is unconditional then you can back out. There is usually a 'cooling off' period of 7 working days also at the start of signing the contract. Most contracts take 30-60 days to complete depending on your circumstances and the vendors circumstances - these can also be negotiated.

As far as making an offer on a house (and we've bought 12 houses here in Oz) we always start at 7.5% off the asking price (depending on the area and the market at that time). So, if someone is asking $400K for a house, my first offer would be $370,000 ($400K - 7.5%). If this was not accepted then I'd take my 'Final offer' to 5% off the asking price (i.e. $380,000 in this case) and if this was not accepted then I'd walk away - there are literally thousands of properties on the market.

When buying also beware of stamp duty. This differs from state to state; Examples on a $400,000 home.

NSW - $13,719

ACT - $8,562

QLD - $6,426

WA - $13,434

NT - $16,812

SA - $19,820

TAS - $14,348

 

These are government charges and are NON-NEGOTIABLE. Make sure you've got enough to cover these charges. Solicitors usually cost around $1500 for conveyancing too.

  • Like 2
Link to comment
Share on other sites

9 hours ago, BobHatton said:

In the case of buying a house then until the contract is unconditional then you can back out. There is usually a 'cooling off' period of 7 working days also at the start of signing the contract. Most contracts take 30-60 days to complete depending on your circumstances and the vendors circumstances - these can also be negotiated.

As far as making an offer on a house (and we've bought 12 houses here in Oz) we always start at 7.5% off the asking price (depending on the area and the market at that time). So, if someone is asking $400K for a house, my first offer would be $370,000 ($400K - 7.5%). If this was not accepted then I'd take my 'Final offer' to 5% off the asking price (i.e. $380,000 in this case) and if this was not accepted then I'd walk away - there are literally thousands of properties on the market.

When buying also beware of stamp duty. This differs from state to state; Examples on a $400,000 home.

NSW - $13,719

ACT - $8,562

QLD - $6,426

WA - $13,434

NT - $16,812

SA - $19,820

TAS - $14,348

 

These are government charges and are NON-NEGOTIABLE. Make sure you've got enough to cover these charges. Solicitors usually cost around $1500 for conveyancing too.

This is very informative,  thank you.  I thought though, it's up to 430k there is no stamp duty in WA? 

We would be first time buyers (established property) and plan to live in it permanently.   Cash buyer, no mortgage.

Edited by Aussiebird
Link to comment
Share on other sites

1 hour ago, Aussiebird said:

This is very informative,  thank you.  I thought though, it's up to 430k there is no stamp duty in WA? 

We would be first time buyers (established property) and plan to live in it permanently.   Cash buyer, no mortgage.

I am reading so many different things about first home owner grants and stamp duty.

Do you not pay stamp duty up to 430k if you are only elegible for the first home owner grant and it must not be an established property?

We are not keen on building so is there no help for first time buyers who do not want to build, but want to buy an established home (WA).

TIA xx

 

 

Link to comment
Share on other sites

1 hour ago, Aussiebird said:

I am reading so many different things about first home owner grants and stamp duty.

Do you not pay stamp duty up to 430k if you are only elegible for the first home owner grant and it must not be an established property?

We are not keen on building so is there no help for first time buyers who do not want to build, but want to buy an established home (WA).

TIA xx

 

 

The government are trying to support the building industry, hence better deal on new builds. But I did think you didn't need to build it yourself, you could buy it from a builder. Not that common in Perth, but does happen.

Long time since I've lived in Perth, so I could be way out of date. But normally an offer is binding, but you can add conditions to the offer. Eg subject to termite check, survey, (horror story of subsidence in the northern suburbs, but rare), subject to mortgage, but I would specify from what bank, subject to sale etc. Penalties for pulling out can be severe. So don't offer until you are sure.

Often people put a range of prices. The lower being cash sale, the higher being subject to sale. If you are a cash buyer, go in low. Perth real estate has been in the doldrums for a while. Prices haven't risen in ten years. Other states not so much.

There are websites where you can check out previous sales, and property performance. Reiwa. Every state has one.

Home opens are common, where you view many properties on a weekend.

Some Perth people seem to decorate their homes in a way that is deliberately unattractive to UK people. Try and see past it. Some things are easy to change, some aren't.

Have fun.

Link to comment
Share on other sites

  • 3 weeks later...
1 hour ago, BobHatton said:

From the WA Government website.

If you are a first home owner, you may qualify for the grant if you are purchasing or building a new home. A home that has been substantially renovated may be considered a new home. The grant is not available for the purchase of an established home or for renovations to an existing home.

The grant is $10,000.

Thank you, so I'm guessing as a first time buyer (not building) we would have to pay stamp duty too?

Link to comment
Share on other sites

16 hours ago, Aussiebird said:

Thank you, so I'm guessing as a first time buyer (not building) we would have to pay stamp duty too?

The calculator link I mentioned on 26 July in your other  thread (Stamp Duty) on Renting and Real Estate  gives you this information for W.A.  Just enter the details applying to your particular situation and it will show  (a) whether stamp duty is payable (b) how much.  Here is that link again:

https://reiwa.com.au/advice/calculator-tools/stamp-duty-calculator-wa/

 

Link to comment
Share on other sites

3 minutes ago, Aussiebird said:

I see a lot of properties are advertised as "best offer over" or offers above", thats not a negotiation, so i wouldnt bother even viewing or making an offer under the advertised price!

Or should I?😂

You can still try if you really like it - you might be the only offer and they may consider.  Our home was advertised offers between X and X .. we offerred the lowest which was rejected and ended up buying it somewhere in the middle.

  • Like 1
Link to comment
Share on other sites

  • 1 month later...
  • 2 weeks later...

You can negotiate but you need to bear in mind that some people have less wriggle room than others. We bought our current house from a couple who were buying into a retirement village. They were up front that they needed $xxx to do that - and the price seemed reasonable for the house. We tried going 5% lower - we were rejected - and so we paid the asking price. Happy with the outcome - I hope the vendors were happy too. 

Link to comment
Share on other sites

On 06/07/2020 at 00:36, Aussiebird said:

Just a quick question,

Is it quite common to negotiate house prices when buying in Australia?  We have rented before but never purchased, so just wanted a heads up for future reference.

Thank you. Xx

Depends on the market and the area you want to buy in. Some areas, usually near the beach or river here, always seem in demand and places sell quickly. If you go way South or North, where new suburbs have been built there is usually a bit of oversupply and you might have more success.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...