How much to offer, asking price 75k

BordsMagoo

My sister is looking at buying a two bed apartment, it's been on the market for well over a year and includes furniture and contents, the asking price is 75k. She's a first time buyer so doesn't really know about these things so isn't sure how much to offer without being insulting or getting ripped off? What would be the norm here? Any idea would be great!

Slydice

depends on where

the exact address would help but if you're worried about giving that out, try just the local area

BordsMagoo

I just rang her there but she doesn't want me to give the address but it's balbriggan. Hope this helps?

Unregistered.

BordsMagoo wrote: »

My sister is looking at buying a two bed apartment, it's been on the market for well over a year and includes furniture and contents, the asking price is 75k. She's a first time buyer so doesn't really know about these things so isn't sure how much to offer without being insulting or getting ripped off? What would be the norm here? Any idea would be great!

What area is it in? Maybe do some research and see what prices other apartments went for, if they were sold recently.

athtrasna

As it's an apartment there will be a management company and management fees. She should download the most recent accounts from www.cro.ie (there's a small fee for this, less than €5) and check out the financial situation in the development. If the accounts are in the red she should run a mile. I know of one development in the Balbriggan area where the MC is in debt to the tune of 5 figures, it would be disastrous to buy into such a situation.

BordsMagoo

athtrasna wrote: »

As it's an apartment there will be a management company and management fees. She should download the most recent accounts from www.cro.ie (there's a small fee for this, less than €5) and check out the financial situation in the development. If the accounts are in the red she should run a mile. I know of one development in the Balbriggan area where the MC is in debt to the tune of 5 figures, it would be disastrous to buy into such a situation.

What would be the worse case scenario of it happened to be the same management company? Sorry to sound ignorant but I genuinely don't know. She's thinking of putting in an offer this week, I'll certainly tell her to check out that site first. What would be ok to offer if all seems ok though, keeping in mind it's been on the market at least a year?

JOSman

You have to start somewhere so put in an offer for half the asking price.

BordsMagoo

JOSman wrote: »

You have to start somewhere so put in an offer for half the asking price.

Seriously?? Half?

Kevwoody

JOSman wrote: »

You have to start somewhere so put in an offer for half the asking price.

I hope you never have to sell your house, offering half is just insulting.

martin46585

Go in with too low an offer, and you will create a first impression of wanting something for nothing,
Go in with a decent offer somewhere near the asking and your in a position to ask for immediate withdrawal from the market, and all the bull-hit that goes with these type of sales,
A friend of mine, just last Friday, lost out on a turn key finish apartment, because her "advisors" told her to offer an overly low bid, and with the cattle dealing that ensued,
another buyer offered the full asking price, which was already a steal, and So completed the sale....
The cash buyer is light on the ground, but if there is a choice of these apartments then fine, but if this is where she would like to call home, a couple of grand is neither here nor there......

BordsMagoo

There's a couple of different apartments around balbriggan, julianstown etc between the prices of 65 and 75, oroginally she wanted to spend no more than 50k as that's what she has but A few of us told her she would be mad to offer so little, did she have a point, would it be ok to offer 50k on one of these places?

Stheno

check how cheap houses are there

athtrasna

BordsMagoo wrote: »

What would be the worse case scenario of it happened to be the same management company? Sorry to sound ignorant but I genuinely don't know. She's thinking of putting in an offer this week, I'll certainly tell her to check out that site first. What would be ok to offer if all seems ok though, keeping in mind it's been on the market at least a year?

Worst case scenario is there is no money for insurance which would put your sister in breach of her mortgage conditions. Would also affect maintenance, refuse, common area lighting etc. Or she gets hit with a budget correction levy/fee hike of several thousand. She shouldn't even consider putting an offer on an apartment without knowing the financial situation of the management company.

snowey07

Kevwoody wrote: »

I hope you never have to sell your house, offering half is just insulting.

I dont see anything wrong with offering half,a home is more than likely the most expensive thing youll ever buy -why would you offer more just so you dont appear insulting !

If i really liked it and was happy with everything & its on a 75k id offer 45k

Bigus

Go visit all the auctioneers in the area show proof of 50 to spend and see what comes of that. They know which of their clients are desperate .

P. Breathnach

There is no formula that tells you what percentage of asking price to offer. That is mainly because of the way asking prices are set.
- Some are realistic, reflecting a good estimate of what the property might get if all went very well (essentially, 2 or more parties who really want the property).
- Some are on the optimistic side, where the seller finds it hard to accept that the market has moved as far down as it actually has.
- Some are set at a do-not-buy-me level, where a mortgage is in arrears and the householder is maintaining a pretence of trying to sell the property.
- A small proportion of asking prices are set below the market level - typically in areas where there has been a modest recovery in prices such as in Dublin 6.

If you make an offer that is hugely below that ephemeral level, a realistic selling price, you could be seen by EAs in the area as a time-waster, and they might not engage with you.

[On a quick look, I saw only one two bedroom apartment in Balbriggan at €75k. Looks okay to my inexpert eye, but I don't know anything about local market conditions.]

Moonbeam

Check the asking price on similar properties.
Is it down in "Lego land" near Dunnes?
There are a few issues with the manage net companies in some of the estates .
I own a house there feel free to pm me.

stepbar

My rule when it comes to apartments is based on rent yield. The yield in Balbriggan (IMO) should be c8-9%. Lets face it, it's a commuter town for Dublin and it's a good distance out let be honest. Like a lot of towns in suburbia Dublin / Meath / Kildare, apartments are 2 a penny.

At present there are 28 2 bed apartments for rent in Balbriggan (on Daft) - Cheapest €600 p.m; Dearest €850 p.m. Based on this, the economic value of a 2 bed apartment (assuming you agree with the rent cost) should be between 72k and 102k (9% yield). I'd be hard pushed to pay 850 p,m for an apt in Balbriggan - you'd probably secure a 2 bed for the same price closer to the city.

(i.e Rent x 12 x 90% (10% for expenses such as mgt fees) / yield * 100)