How much below asking price for cash offer

Carlowgirl

Hi There
Just wondering how much below asking price you should or could get away with if buying in cash. For Example if a house was going for 180 or 150 thousand how much would be appropriate. Also if a house was being sold for 110,000 .. I was thinking 80,000 but then again someone with a mortgage could probably get it that no?

Ray Palmer

Carlowgirl wrote: »

Hi There
Just wondering how much below asking price you should or could get away with if buying in cash. For Example if a house was going for 180 or 150 thousand how much would be appropriate. Also if a house was being sold for 110,000 .. I was thinking 80,000 but then again someone with a mortgage could probably get it that no?

If you think a cash buy will mean you can over 25% discount I think you are dreaming. Most people selling don't really care what form the money comes in. I think the maximum you could get is 15% but it will have very little to do with it being cash.

What do you think the great benefit is to the seller?

Carlowgirl

Ray Palmer wrote: »

If you think a cash buy will mean you can over 25% discount I think you are dreaming. Most people selling don't really care what form the money comes in. I think the maximum you could get is 15% but it will have very little to do with it being cash.

What do you think the great benefit is to the seller?

Hi well I have another forum here from few months ago when I asked why a house wes offered 180 for was sold for 130,000. Everyone said it must of been a cash sale and I had heard that also from neighbours. The general consensus was that cash is king and sellers want cash as they are guaranteed a sale I really don't know but It happened to us already!

Ray Palmer

Carlowgirl wrote: »

Hi well I have another forum here from few months ago when I asked why a house wes offered 180 for was sold for 130,000. Everyone said it must of been a cash sale and I had heard that also from neighbours. The general consensus was that cash is king and sellers want cash as they are guaranteed a sale I really don't know but It happened to us already!

I remember the thread or at least similar. A lot of conjecture as to why it happened and you will never know. Cash is king mantra is generally speculation as they don't know either.

There was also the suggestion cash was paid for fixtures, sold to a family member and bank forced sale. They are all possible reasons.

Use your own logic and state why you think cash is that much better.

They only thing I can think of is people in a chain could get a benefit. They also want to be desperate. That is a particular set of circumstances you want for it to work.

Carlowgirl

Ray Palmer wrote: »

I remember the thread or at least similar. A lot of conjecture as to why it happened and you will never know. Cash is king mantra is generally speculation as they don't know either.

There was also the suggestion cash was paid for fixtures, sold to a family member and bank forced sale. They are all possible reasons.

Use your own logic and state why you think cash is that much better.

They only thing I can think of is people in a chain could get a benefit. They also want to be desperate. That is a particular set of circumstances you want for it to work.

I really don't know myself that s why I am asking. I have tried using the property price register as a guide. Interestingly a bank sale went ahead in june for a really nice property. It was a 7 bed dormer bungalow, about 10 years old on an acre site. The asking price or starting price was 89k. This is way below any asking prices for even abandoned bungalows in the area and I cant find what it went for in the register just to use it as a guideline. Do they sometimes use different land area name etc or are bank sale s not included?

Forest Demon

I am finding that most people do not care about a cash sale. I am a cash buyer and have found to my surprise (and contrary to what you read on here and other forums) that most sellers are not discounting at all for a cash sale.

Maybe developers or landlords who might be interested in a quick sale might discount but I have not not found any.

Asking prices are firm in a lot of properties and estate agents are still overvaluing them compared to the ones that are shifting.

Its really frustrating trying to buy at the moment. A lot of messing around. Buyers market me arse.

Capt'n Midnight

Don't forget that sometimes more cash is paid than declared to give a lower property tax rating.

TheDriver

Forest Demon wrote: »

Its really frustrating trying to buy at the moment. A lot of messing around. Buyers market me arse.

My sentiments exactly, I am finding it equally frustrating. I have seen price drops that were a "mistake" but as your here to view the house, maybe you'd like to pay the full amount! Needless to say the mistake has not been rectified on any website. EAs trying to create bidding wars on houses and they are still for sale, owners who obviously won't move out when they actually sell (this is something I never realised but sellers who are all eager to sell out of choice but a clear message that they would then look for somewhere to buy and not rent and hence be a while getting out.....)

Buyers market me arse is totally right. I have tried cash buying and no one wants to hear.........

Scortho

The only way cash will get you a discount is if the buyer is desperate to sell quick or if it's a bank sale of a vacant property.

Villa05

In carlow, cash probably king no shortage of stock

Santa Cruz

Villa05 wrote: »

In carlow, cash probably king no shortage of stock

Maybe out in the sticks where every local cowboy builder fancied himself as a developer and built what are now ghost estates. Not in good city areas where there is a shortage. The seller is calling the shots there

Carlowgirl

I know of semi detached houses asking for 110 or 120 and they end up going for 75-80 anyway through mortgage sales. So there is definitely room for negotiation out side of Dublin!

Idbatterim

carlowgirl it depends on a number of factors, it could be a bloody bargain at the asking price for all we know!

Moonbeam

if people need a quick sale and a buyer with no chain then cash is king but I think most people now a days people just want to get as much as they can for their houses.

The_Conductor

A 25% discount- purely for paying cash- is stretching credulity.
What have similar properties in the vicinity sold for (what is the going rate- a one off bank sale is *not* the going rate).

We don't have enough information here to give you advice to be honest- it could be a wonderful property in a good location and perfectly suited to you- then again- perhaps not- we don't know. We also have no idea what the OMSP for the area might be.

At least part of the problem is that the property market is not functioning properly at the moment.

How desperate are the sellers to sell? If they're not desperate- and you come in with a lowball offer- it would be a natural reaction for them to dismiss you out of hand, and ignore you should you start playing games with them (this is how they might view it). If, on the other hand, they are desperate to sell- they might bite your hand off with your lowball offer- we don't have enough information to tell.

Throwing in a lowball offer- is possibly a good opening gambit- but if anyone else at all is interested in the property- you could torpedo yourself out of the reckoning- by virtue of playing this game. If on the other hand- no-one else is interested- and the vendor is desperate to sell- perhaps it might be a good gambit.

We don't know.

Tea drinker

Forest Demon wrote: »

I am finding that most people do not care about a cash sale. I am a cash buyer and have found to my surprise (and contrary to what you read on here and other forums) that most sellers are not discounting at all for a cash sale.

Maybe developers or landlords who might be interested in a quick sale might discount but I have not not found any.

Asking prices are firm in a lot of properties and estate agents are still overvaluing them compared to the ones that are shifting.

Its really frustrating trying to buy at the moment. A lot of messing around. Buyers market me arse.

I'm up the walls. Feckin distraught at the behavior of some sellers

Henry Ford III

It depends totally on 2 things:

1/. How competitively priced is the property? If it's good value already trying to haggle much more off won't work.

2/. How badly does the seller want rid?