Going below the asking price

Qboot

Hi,

I was wondering what are your thoughts on going below the asking price when making an offer on a property. How much under the asking price can ou go, percentage-wise, and still be taken seriously? For instance, is it reasonable to bid €245k on a property in the Midlands with an asking price of €280, which would be roughly 20% less? Or are the days when you could under-bid a property over and you should go directly for the asking price?

I am new to the property market, so I would greatly appreciate any input from those who has some practice in this regard.

Thanks!

Brego888

Bid whatever you feel the property is worth. There are no rules.

Pawwed Rig

Check the property price register for similar property prices and be lead by that to some extent. The midlands would still be a fairly weak market but is getting stronger.
Stick your bid in. The worst that can happen is that they say No

myshirt

Brego888 wrote: »

Bid whatever you feel the property is worth. There are no rules.

Exactly.

100%.

Op, auctioneers are usually in the ballpark with what they list a property at. If anything they go 10% lower so as to get a few fish on the hook to fight against each other. Low balling for the sake of low balling gets you no where, and in fact will discredit you, you might be termed a spoofer and not taken seriously.

Know what the property is worth, know what you can afford, know what you want to bid, and run with that. This isn't a 3 grand car where the dealer puts it on to take it off. Make your offer, show you have the funds and you are ready to go. This is a lot better than dipping your toe in and ball hopping them with 40k below asking.

Qboot

Pawwed Rig wrote: »

Check the property price register for similar property prices and be lead by that to some extent.

This is actually very helpful. Thank you, PR.

myshirt wrote: »

Op, auctioneers are usually in the ballpark with what they list a property at. If anything they go 10% lower so as to get a few fish on the hook to fight against each other. Low balling for the sake of low balling gets you no where, and in fact will discredit you, you might be termed a spoofer and not taken seriously.

Know what the property is worth, know what you can afford, know what you want to bid, and run with that. This isn't a 3 grand car where the dealer puts it on to take it off. Make your offer, show you have the funds and you are ready to go. This is a lot better than dipping your toe in and ball hopping them with 40k below asking.

I suppose you are right. Still, when a property is listed significantly higher than other similar properties in the area, it makes you wonder whether to go for it at a lower price.

Geuze

245k is 12.5% below 280k.

Same as one-eighth [1/8] below.

Qboot

Geuze wrote: »

245k is 12.5% below 280k.

Same as one-eighth [1/8] below.

Indeed! Thanks for pointing it out.

KenjiOdo

We bid on three houses before successfully becoming homeowners recently;

#1 List €80K -- Bid of €90k already on it -- €60k our bid (laughed at but was a serious offer in case other offers withdrew, place was in ruins).

#2 List €80K -- Bid of €87k already on it -- €88K sale agreed our bid, which we subsequently withdrew.

#3 List €110k -- No bids on it -- €90k (Bank repossessed property, very hard to have dialogue with estate agent, don't even think our bid was submitted).

#4 Listed for auction we bought for AMV*2 -- We were house hunting for best part of 10 months, we viewed way more than these four. I'm so glad we lowballed our offers on the two previous properties and the other wasn't viable for us, none of them in league with what we ended up with.

Ultimately what I'm trying to say is we weren't willing to offer what we were told it was worth, but what it was worth to us before we remodelled to our own tastes, sometimes its ok to be laughed at through low bids because it paid dividends to us in the long run as we now have our dream home!