Luck with Lowball Rental Offers in Melbourne

ldawg on 09/12/2020 - 09:26

Hello bargain hunters,

I'm currently shopping around for a new rental in the inner north of Melbourne, and I'm wondering if anyone has any anecdotal evidence on lowball offers being successful?

I'm looking at a place that is definitely overpriced compared to surrounding properties (I've had a look around and they're asking for the same rent they were asking 18 months ago), and I know it's been on the market for 5+ weeks. I really like the place, but would only be interested if the price point were to drop about 20% - feels like a lot, but I did see a very similar (albeit not quite as good) apartment in the same building with the same number of bedrooms and bathrooms rent for less than what I would be offering a few weeks ago.

Anyone been in a similar situation lately? how did it work out for you?

Home & Garden

Comments

  • JimmyF on 09/12/2020 - 09:38
    +12

    Speak to agent, tell you are interested, tell them you can offer $xxx.

    Wait for reply. If no, move on, if yes, move in.

    • dust on 09/12/2020 - 09:56
      +17

      Outrageous suggestion. I think posting the question to a bunch of randoms on the internet is a better option.

      • ldawg on 09/12/2020 - 10:10
        +5

        For anecdotal evidence and other people's experiences, I do think asking strangers on the internet is the best option to be honest.

        • brendanm on 09/12/2020 - 11:33
          +5

          What does anecdotal evidence do for you in this situation? You ask them, and they either accept, or don't. They aren't going to care what people on ozbargain have to say about it.

  • dasher86 on 09/12/2020 - 09:39

    put in an offer and find out.

  • Headless on 09/12/2020 - 09:41

    No chance of that happening - My rental agent told me yesterday the media scare is over and there are heaps of people looking for properties
    Worth a try, but from experience doing this myself as a tenant also, people here would rather have their house empty than to rent it cheap…

    • ldawg on 09/12/2020 - 09:45
      +1

      That's a bummer! Thanks for the tip. I'd be so on edge about leaving a property vacant if the roles were reversed… at a 20% reduction, you'd have to find a tenant within 5 weeks, otherwise you're losing more!

      • Headless on 09/12/2020 - 09:47

        Absolutly agree, I have a friend who refuses to drop 20 a week (because its worth it) - no sense in some people - apartment has been empty for 8 months now…

        • ldawg on 09/12/2020 - 09:52

          8 months!! that's a nightmare

    • Hardlyworkin on 09/12/2020 - 09:47
      +1

      Which area? Close to the CBD and close to universities are a different story to say the outer burbs.

      • Headless on 09/12/2020 - 09:48
        +1

        Agreed, many variables
        Maybe we can help by making lots of super low offers, when yours come in they wil snap it up

    • JimmyF on 09/12/2020 - 11:12
      +2

      No chance of that happening - My rental agent told me yesterday the media scare is over and there are heaps of people looking for properties

      The number of rentals listed for rent would say otherwise…… But ok

      • Headless on 09/12/2020 - 11:34

        Probably just wanted my businness!

        • JimmyF on 09/12/2020 - 12:15
          +3

          A REA lying, NEVER!!!

  • Hardlyworkin on 09/12/2020 - 09:45
    +1

    Same price as 18 months ago in the inner north… Tell em they are dreaming!

    My old apartment dropped 20% as did most others in the building. If you have a strong application then I would try your luck. The agent might be able to give you an idea, mine suggested for my current place that the owner was keen to get someone in. They should want to get someone in before Christmas.

    • ldawg on 09/12/2020 - 09:50

      I was thinking the same thing! It seems totally nuts comparing it to everything else that is listed in the same area. I guess all I can do is give it a shot

  • slow on 09/12/2020 - 09:55

    Recently rented out a place and was surprised at the number of good applications at the advertised rent …..

    • ldawg on 09/12/2020 - 09:57

      How long was it on the market for in the end? Only reason I'm really considering this place is because it's been up for so long (5+ weeks) - I've definitely seen lots of good places come and go in under 2 weeks that were priced more reasonably

      • slow on 09/12/2020 - 12:51

        Long term tenant moved out at the start of covid. Had to take a 20% drop and 6 months lease to get someone decent (would rather have the place empty than have a dodgy tenant - been there done that before)

        They left a month ago and readvertised at pre-Covid rent and got a few good applications at full rent (and some lowballers), so got a tenant pretty much straight away

        Place is a 3 bed semi-detached in inner city

        • netjock on 09/12/2020 - 13:21

          Place is a 3 bed semi-detached in inner city

          Still demand due to family size. Say 2 BR flats and apartments aimed at students would be doing it tough.

          Notice many Australia families are returning on repatriation flights. International students are pretty much locked out.

  • TwentyTwoCarats on 09/12/2020 - 10:25
    +2

    If you fail to get the reduced price accepted, then shoot for 2 weeks free, if refused then 1 week free.

    i managed to get a week free

  • AustriaBargain on 09/12/2020 - 10:39

    Agents might have some properties that have been listed for a while they would offload. But any particular one you are interested in is probably a regular property they know they can fill with their ideal candidate from a pile of regular applications.

  • [Deactivated] on 09/12/2020 - 10:42

    inner north of Melbourne, and I'm wondering if anyone has any anecdotal evidence on lowball offers being successful?

    Saw a nice modern apartment that had a sensual massage parlour next door, with a major artery right outside your window, great price tho.
    Also if you werent familiar with heroin, you soon would be.

    imho 'good rentals' just dont last long, and even 25% off a loser is still a loser.

  • CyberMurning on 09/12/2020 - 11:43
    -5

    lowball is for low people

  • tsunamisurfer on 09/12/2020 - 11:52

    Why does the OP need to ask a forum?

    Just ask put an offer to the agent and see what they say, its hardly life or death.

    If the OP thinks market forces are in his favour go for it, this is why the market value is fair, everyone gets a say.

  • nigel deborah on 09/12/2020 - 12:08
    +1

    I just signed a new lease for inner city apartment for 30+% less than I was paying 12 months ago.

    If you are near a university prices have dropped drastically.

    • netjock on 09/12/2020 - 13:22
      +1

      Airbnb tanked and no international students.

      At the moment Australian ex pat families are returning from overseas. Locals going nuts buying regional properties and houses.

      • nigel deborah on 09/12/2020 - 13:34

        Yep, totally depends on where you are

  • Hirolol on 10/12/2020 - 09:57

    How much did you offer?
    You probably could have gotten a quicker response by asking the agent directly.

    Anyway, are you in any position to pay 2+ months rent in advance?
    That would be a huge advantage over other applicants.

  • MontyMacaw on 10/12/2020 - 10:08

    There are a lot of 6 month leases around because owners are hoping to increase rents when things “recover”. Well the recovery won’t be fast believe me. Even then the work from home dynamic may be here for good so that will affect demand. But then some owners are just plain stubborn and won’t accept the reality that central locations are plentiful right now and they need to meet the market. There is more than one way to skin a cat. Ask for things like improvements to the property or a month to month lease or maybe even the first month for free as bargaining chips. It may make them rethink their price or compensate you for what you pay.

  • OzHunterNSW on 10/12/2020 - 10:14

    You could make an offer… but they know once things pick up… the rents are going to skyrocket.

  • bohobogan on 12/12/2020 - 23:52

    So no rental income for the owner for 5 weeks. Overpriced. Not quite the bargain. What are you waiting for? Do it! If you can offer a few months in advance at reduced price, do that too! Do anything you can to reduce your expenditure. Apply this to every aspect of life. A no is the worst that can happen.

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