Hey,
We've been looking at some land for a few months but the agent has done little to no chasing so we've not done anything about it. Been getting married and other important things
Anyway the land was up for $360k in Feb with another agent and with the current agent for $330k since May, although it's never been listed we've just been told it's going to be listed for $299k.
Now we thought it was over priced by a fair bit and was worth maybe $270k which is why we were so lax about doing anything.
I've done some research on the area and 2 other blocks (same size) sold for:
$170k Aug-13
$220k Mar-14
This actual land was purchased for
$330k in Apr-12
The local township (15 minutes away) has decreased real estate median value by 12% in the past 12 months. It's near a mining area which has quietened down a fair bit with a few mines closing. The 'boom' is over. The land was purchased in the boom and I think the owners must now be in negative equity.
Whilst we want the land we'd be putting in an offer I think of nearer $200k with the above information in mind, which I think will be knocked back but putting in an offer of say $270k would put us in negative equity straight away I think.
Any thoughts from anyone?! Just trying to get things straight in my head before taking to the agent. Of course any offer we make would be subject to Finance so we could back out of the valuation wasn't favourable.
Thanks and sorry for the long post!