Offering way below asking price?

leahyl

Hi, I am going to look at a house on Monday that is priced at 189k but is WAAAAY overpriced in my opinion and in most other peoples opinions also I would say!

Anyway, my parents seem to think that I could never (IF i were to) put in a offer of 140/150k as I just wouldn't get it for that but I think with the way things are at the mo feck it! Why wouldn't I get it?

Now I'm thinking would it be cheeky offering that much below the asking price?

Bigcheeze

There's no fixed rule. It all depends on the asking price vs market.
If it's way over market then of course offer way below. Don't expect a quick answer and don't be tempted to bid against yourself.

killers1

There is no difficulty in putting in an offer at whatever level you want to. There's no doubt that some properties with an asking price of €190k sell for less than €150k so it's very conceivable that you could get the property at that price. If the property has been on the market quite a while with no offers the sellers may be open to accepting a lower offer. If it's new to the market they may want to hold out in the hope of getting a higher figure. Either way as Bigcheeze said don't bid against yourself, be prepared to bide your time & walk away if necessary. I'd certainly wouldn't be offering any more than €140k as a starting point...and set an upper limit in your head that you won't exceed. Best of luck!!

leahyl

killers1 wrote: »

There is no difficulty in putting in an offer at whatever level you want to. There's no doubt that some properties with an asking price of €190k sell for less than €150k so it's very conceivable that you could get the property at that price. If the property has been on the market quite a while with no offers the sellers may be open to accepting a lower offer. If it's new to the market they may want to hold out in the hope of getting a higher figure. Either way as Bigcheeze said don't bid against yourself, be prepared to bide your time & walk away if necessary. I'd certainly wouldn't be offering any more than €140k as a starting point...and set an upper limit in your head that you won't exceed. Best of luck!!

Excellent thanks guys - house has been on the market for about 2 years and has only gone from 250k to 189k in that space of time. Needs a good bit of renovation inside. So I think I'm justified in offering 140k!

zulfikarMD

leahyl wrote: »

Excellent thanks guys - house has been on the market for about 2 years and has only gone from 250k to 189k in that space of time. Needs a good bit of renovation inside. So I think I'm justified in offering 140k!

Make an offer what you think is good and what in your view house is worth. Just Forget about asking price. There is no rule about making an offer that it should be 10% or 20% less from asking price..

Snakeblood

leahyl wrote: »

Excellent thanks guys - house has been on the market for about 2 years and has only gone from 250k to 189k in that space of time. Needs a good bit of renovation inside. So I think I'm justified in offering 140k!

I had an apartment that was 'valued' at 245 grand at the height of stupidity and I sold eventually for 115. You never know until you try.

DubDani

Recently offered 134K on a house that was up for 255K (down from 400K a year ago), and got a counteroffer of 160K within minutes. Still haggling, but anticipate to pay no more then 145K in the end.

Asking prices are just that... don't be afraid to offer whatever you think it is worth, even if it would only be 80K.

bobbyg

DubDani wrote: »

Recently offered 134K on a house that was up for 255K (down from 400K a year ago), and got a counteroffer of 160K within minutes. Still haggling, but anticipate to pay no more then 145K in the end.

Asking prices are just that... don't be afraid to offer whatever you think it is worth, even if it would only be 80K.

Can you tell us the general location of the house you are bidding on? Just out of curiosity.

leahyl

Thanks guys! Now I'm thinking I should maybe offer 130k....:D Nah IF I make an offer at all I'll probably chance 140k

Here's the house - I had it on a few months back on a thread.

http://www.daft.ie/searchsale.daft?id=552129

BobMc

also be straight tell them, you're not waiting too sell another property so no chain, mortgage approved or cash buyer ready to do a quick deal !

jdivision

House prices are down about two-thirds (the CSO figures lag the market) so based on the asking price they're saying it was worth 475k at the peak. That seems unlikely given it's Mayfield (not a comment on the area, just on pricing) so I think you can work out from there whether you think your offers a good one or not. I would think it was.

leahyl

jdivision wrote: »

House prices are down about two-thirds (the CSO figures lag the market) so based on the asking price they're saying it was worth 475k at the peak. That seems unlikely given it's Mayfield (not a comment on the area, just on pricing) so I think you can work out from there whether you think your offers a good one or not. I would think it was.

I would say the most the house would have been worth pre bust would be around 350k so I should def be able to offer around 140k - cheers for that:)

Monty Burnz

If you aren't embarrassed by your offer, it's too high. Old saying, so it must be true.

ProudDUB

leahyl wrote: »

Hi, I am going to look at a house on Monday that is priced at 189k but is WAAAAY overpriced in my opinion and in most other peoples opinions also I would say!

Anyway, my parents seem to think that I could never (IF i were to) put in a offer of 140/150k as I just wouldn't get it for that but I think with the way things are at the mo feck it! Why wouldn't I get it?

Now I'm thinking would it be cheeky offering that much below the asking price?

I was rotten at maths at school, but even I can tell that what you are thinking of offering is about 20% off the asking price. Is that being cheeky? In this day and age? Oh hell no ! Go for it !

housetypeb

I looked at a house that had dropped its price from 250k to 190k ,to generate interest, according to the EA.
I had no qualms putting in a low ball offer of 120k cash for it. The way I saw it, if I got it for that price I would be happy and the EA should be happy to have a floor price that he could build from.
One other bidder emerged
I didn't get that house as I dropped out after my last bid of 140k was bettered by an offer of 150k(which was my secret cut off price) a suspicious jump of 10k, when bids were going up 5k each time until then, fair enough, either the other bidder pulled a strategic move or the EA got greedy and will be back to me soon,
There's no shortage of houses and more coming on the market every day.
TL;DR
A house is only worth what some one will pay for it, If you're the first bidder on it, come in very low,bid up to your walk away price.
If it goes higher - walk away.

piperh

Don't know the area so can't comment on pricing but in my own experience make the lowest offer you can bring yourself to and sit back wait.

We recently bought a 4 bed cottage (needed a fair bit of work) on nearly an acre of land for under €80g, it was originally on the market at €280g and found out after we'd bought it my neighbour had offered €230g just 6mnths before and it'd been turned down :eek:

leahyl

Ok just an update on this - went to see the house yesterday and NO! Oh my god it is worth around 100k at most - there is a LOT of work to be done to it. I mean I could see by the pics that I'd have to do some work but when you actually see it in real life it's quite obvious there is waaaaay more to be done!

So that's that one scratched off my list! Not that I have a list:pac: I wouldnt even be willing to offer 100k simply because I want a place that's habitable straight away and would only really need a lick of paint and a few changes in decor and this place doesn't fit that criteria I'm afraid.

No wonder it's been on the market so long.