How much under asking price do you dare go?

MelonStrings

Hi All,

Looking to take the plunge in the property market, but what is a reasonable offer to make? I don't think anyone meets asking prices do they unless the seller has priced accordingly? Can you go in at 20 - 25% below asking price and expect anything other than refusal?

Cheers,
Melon.

odds_on

I am just buying a property and put in an offer which was about 15% lower than the asking price. The asking price was over 15% lower that other apartments in the building which to my mind were not as good (views/size/condition etc); in fact I would not have considered any of the other apartments in the block!

Idbatterim

is the property priced to sell or not? if a property has just had its priced reduced or is priced to sell, i doubt you will get much off! is your offer under consideration or accepted or declined odds_on?

Theboinkmaster

MelonStrings wrote: »

Hi All,

Looking to take the plunge in the property market, but what is a reasonable offer to make? I don't think anyone meets asking prices do they unless the seller has priced accordingly? Can you go in at 20 - 25% below asking price and expect anything other than refusal?

Cheers,
Melon.

There is no general rule of x% of asking price because asking price is nothing to do with market value of a property. Like i could tell you im selling my calculator here and my asking price is €10,000. I can ask any price i want but doesn't change the fact it's only worth €10 ie it's true market value.

I don't like your use of "dare" in the title. Put a value yourself on the property and make the offer. Stand firm irrespective of what the vendor or EA says and if not accepted move onto the next property, or wait for prices to fall futher.

Sala

House I was interested in sold at circa 75% of asking. Another was around 95%. I find it hard to know if there are few comparable houses in the area, and even so when they go sale agreed you don't know if it was for the asking anyway...

odds_on

Idbatterim wrote: »

is the property priced to sell or not? if a property has just had its priced reduced or is priced to sell, i doubt you will get much off! is your offer under consideration or accepted or declined odds_on?

My offer was accepted. Offer made on a Thursday and had a call from the EA following Monday to say accepted.
I had also made offers on a number of other properties with different agents and added that the first to accept offer would get the deal. They came back the first and got the deal - happily for me as it was in fact my number one choice!

Villa05

MelonStrings wrote: »

Hi All,

Looking to take the plunge in the property market, but what is a reasonable offer to make? I don't think anyone meets asking prices do they unless the seller has priced accordingly? Can you go in at 20 - 25% below asking price and expect anything other than refusal?

Cheers,
Melon.

If ur offer is accepted, you offered too much.

Wait for the property price database, due in october before thinking of purchasing. Asking prices r crazy compared to selling prices

Roxee

Something I do when trying to figure out what I would pay for a house is simply to work out what the rental yield would be if I was to rent it out at going rate for other houses in that immediate area (easier to do in crowded Dublin estates than in rural setting, granted!)

The going monthly rate x 12 divided by asking price is the yield for that price.

Personally I'd want to see a yield of 7pc or above, ie a higher yield than you'd be likely to get from a bank savings account or from government bonds etc. You'd want it to be higher because property is a riskier investment.

So let's say asking price for house is 200k. And few houses rent in the area for 1200pm. So if you paid asking price, yield would be 1220 x 12 / 200000 = 7.2 pc. Which is pretty good, in my opinion.

Just my two cents - it's another helping hand when trying to decide what a house is worth.

Vic Davidson

Depends how much ye want the place.
Went to see a place last September that was reduced from 145k to 139k, went to see it again when it dropped to 100k in November, offered 75k in February, rejected. Owner will take no less that 90. Countered with 80k, rejected. Went quiet for a while. Just agreed on 80k in June.

poker--addict

If you completely low ball a property do you not run the risk of the owners immediately not taking you seriously?

Theboinkmaster

poker--addict wrote: »

If you completely low ball a property do you not run the risk of the owners immediately not taking you seriously?

Do you care? it's a buyers market

poker--addict

very true, but would annoying them mean they are more likely to reject a bid that they might have accepted from someone else? maybe i read to much into the mind games of it all?

Theboinkmaster

poker--addict wrote: »

very true, but would annoying them mean they are more likely to reject a bid that they might have accepted from someone else? maybe i read to much into the mind games of it all?

Yeah but your bid should be your valuation on the property so why care about their feelings. If they are annoyed and reject it that's fine let someone else bid more and overpay for the property.