Low ball limit in current market

Mad_maxx · 13-11-2019 1:13pm #1

Offered 152 k on a property listed at 169 in the past week

Subjective of course but in the current market, how low can you ( credibly) go?

Nice property but traditionally a lowish income neighbourhood

JohnnyChimpo · 13-11-2019 1:40pm

10% below is about where you can go without a big risk of the seller getting the hump and taking against you personally. IMO anyway. Helps if you can push back with specifics about the property, especially after survey gives an indication of any works that might need doing.

jimmycrackcorm · 13-11-2019 1:43pm

Did you check what other nearby properties went for. Should be a good guide.

Mad_maxx · 13-11-2019 2:02pm

jimmycrackcorm wrote: »

Did you check what other nearby properties went for. Should be a good guide.

Only discovered post bid that nearby house sold for 162 earlier in the year, prices generally cheaper in area

Hopefully they are not too precious

Woshy · 13-11-2019 2:19pm

I think it depends on how the house is priced in the first place - you don't know what is going on with the sellers too. We just sold our house and it was originally priced quite high (EA's recommendation) and we just went along with it to see what happened. We ended up dropping the asking price and even then the house sold for 7-8% below that price which tbh, we were very happy with!

So it's worth doing some research on other houses in the area and remembering that all sellers are different too

Mad_maxx · 13-11-2019 2:23pm

Woshy wrote: »

I think it depends on how the house is priced in the first place - you don't know what is going on with the sellers too. We just sold our house and it was originally priced quite high (EA's recommendation) and we just went along with it to see what happened. We ended up dropping the asking price and even then the house sold for 7-8% below that price which tbh, we were very happy with!

So it's worth doing some research on other houses in the area and remembering that all sellers are different too

Of course, lots of variables, in a high expectation market, you don't want to irritate someone too much, this property is part of a short row of cottage properties, sort of makes them unique, broader market in area is considerably lower

Woshy · 13-11-2019 2:26pm

I personally wouldn't be irritated with a low offer, I'd say no and move on or negotiate but I appreciate that some people might just be annoyed by it and you want to be careful! Hopefully your offer is accepted

DaveyDave · 13-11-2019 2:29pm

What's the best way of seeing what houses are going for? Just looking of Daft sales?

Most houses in my estate are €280-290 and most of them have little to nothing done to them since being built, but listed as the same price as ones with nice kitchen, floors, paved driveway etc. Some are selling very quickly then others aren't. Hard to know what's going on around here.

If it's just lacking any sort of kitchen upgrade, flooring, garden work etc can you still offer less?

Boom_Bap · 13-11-2019 2:38pm

You can bid as low as you want, it's all about it the seller accepts.

But, I'd always have something in my back pocket such as X house in the same area of similar condition sold for Y amount 2 months ago. So your bid should be in an around that.
When you are selling your property, the estate agents will bang on about that there is a downturn at the moment, prices are falling. So use that same story to your advantage when bidding.

Mad_maxx · 13-11-2019 3:00pm

My bid was rejected, estate agent only referred to nearby property making 7% above my offer after I'd submitted the bid, i wasn't going to suddenly on the same phone call revise my bid upwards but i knew my bid was dead upon hearing that

My fault for not carefully checking PPR first

SteelyDanJalapeno · 13-11-2019 3:02pm

DaveyDave wrote: »

What's the best way of seeing what houses are going for? Just looking of Daft sales?

Most houses in my estate are €280-290 and most of them have little to nothing done to them since being built, but listed as the same price as ones with nice kitchen, floors, paved driveway etc. Some are selling very quickly then others aren't. Hard to know what's going on around here.

If it's just lacking any sort of kitchen upgrade, flooring, garden work etc can you still offer less?

Property price register lists all sales eventually

hots · 13-11-2019 3:44pm

I'd say 10% below is fair, much more than that and they just won't take it seriously but there's no harm chancing your arm.

Boom_Bap · 13-11-2019 3:51pm

Mad_maxx wrote: »

My bid was rejected, estate agent only referred to nearby property making 7% above my offer after I'd submitted the bid, i wasn't going to suddenly on the same phone call revise my bid upwards but i knew my bid was dead upon hearing that

My fault for not carefully checking PPR first

Did the estate agent reject it or did the seller or was that specified?

Plus, you can come back with another bid if you can stretch further.

Mad_maxx · 13-11-2019 4:15pm

Boom_Bap wrote: »

Did the estate agent reject it or did the seller or was that specified?

Plus, you can come back with another bid if you can stretch further.

EA was perfectly civil, came back the following day with vendors reply

I benchmarked against another house without realising a neighbouring house sold for way above my bid

I can of course make a fresh bid but they say you should "never bid against yourself"

JohnnyChimpo · 13-11-2019 4:31pm

Mad_maxx wrote: »

EA was perfectly civil, came back the following day with vendors reply

I benchmarked against another house without realising a neighbouring house sold for way above my bid

I can of course make a fresh bid but they say you should "never bid against yourself"

I think that advice is more relevant when you're ABOVE the asking

riclad · 13-11-2019 9:45pm

If you think the house is worth 160k ,or 170k,
make a bid,
would you be happy to live there for 10 years .maybe wait a week and make another bid.Most people buy 1 house,
in the long run paying a few extra k is worth it,
if you want to live there.
theres not many house,s in the area for sale.
you cant afford to pay 220k to live in a slightly more up market area.
think about making another bid.

TheSheriff · 13-11-2019 11:33pm

Offered ~12% below asking price on a house a number of months ago.

It needed a significant amount of work and was overpriced compared to houses in the area.

Our bid was rejected..... house is still up for sale ~5 months later.

We meet the estate agent regularly at viewings and no new bids have been made, but the seller wont budge.

Its frustrating.

Ronney · 15-11-2019 12:17pm

Think there are a lot of people with unreasonable expectations of what they can get.

Recently sold and had the following experience.

Dublin Semi D House in good location with lots potential to extend, decent size south facing garden. Fine to move into now, C1 rated, but lots of small rooms no open plan style
After much debate with EA we actually listed -5% on what we wanted in the hope of attracting bids.

First bid came in at -20% of asking which seamed like an insult but was soon followed by a few at -7%t 5% from asking. over a couple of weeks this got up to asking then asking +5% (or our actual wanted price).
Finished up about asking +10% or wanted +4% approx

So happy enough obviously

Mad_maxx · 15-11-2019 12:49pm

A house ( terraced) less than thirty metres from this one sold for under a hundred grand a few months ago, this house is part of a small row of cottages which have gardens, the general area is viewed as slightly troublesome, vendors are using a single house as a guide

I'll see what happens

fago · 15-11-2019 1:24pm

Our experience:

- Month 1: went to open viewing on 70s property. Back of envelope calculation for renovations gave me a price we thought it was worth. Perfect area, size and potential but too expensive.
- Month 2: went back for another look. Offered 14% below.
- Month 4: Auctioneer comes back to see if our bid still stands and are we willing to increase. Told them nothing had changed.
- Month 5: Offer accepted.

Sometimes waiting things out works, assuming no one else comes along.

Would also say on the other side we sold for 5% below asking.

LuckyLloyd · 15-11-2019 4:40pm

Why would people be annoyed or take it personally?

SozBbz · 15-11-2019 4:54pm

LuckyLloyd wrote: »

Why would people be annoyed or take it personally?

Because 90% of the time people are selling their biggest single asset, and something they've probably emotionally invested in as well.

Buying/selling property isn't entirely logical, there's a significant emotional component.

Low ball limit in current market

Comments