Discount of asking price

Hi Evereyone

Im looking at purchasing a property it had an asking price of $519,000. I checked it out like it and proceeded to put in an offer of $490,000 I have been advised they would accept this to my suprise. Now I feel like Iam overpaying generally as a rule of thumb what is a good starting negotiating offer below asking price. Ive now gone back and submitted a new offer of $488,000 due to me putting some non refundable money down on a new house to build. Im waiting to hear back real estate tells me of course $490,000 is the lowest they will go not a chance of any lower. I think it may be a sale due to a break up as the real estate keeps tsaying the lady is accepting but real estate always needs to ring the man to find out if the offer is ok so im assuming break up. What would everyone else offer. Its a 2 storey 32.5 square home on a 960 square metre block ( battle ax style block though ) with a double shed and a spa also in a good area in Newcastle NSW
 
asking price should be irrelevant

if I sold you my 1984 corolla for asking price $1m, and gave you a $200k dsicount, would you be happy?
 
Depends If i could sell it to the next idiot for more than what I paid yes I would be happy. It would want to be a pretty good corolla though with some real good history behind it.
 
Depends If i could sell it to the next idiot for more than what I paid yes I would be happy. It would want to be a pretty good corolla though with some real good history behind it.

Perhaps you want to edit your post - that is if it also relates to your OP!


pinkboy :p
 
asking price should be irrelevant. if I sold you my 1984 corolla for asking price $1m, and gave you a $200k dsicount, would you be happy?

Likewise, if someone offered to sell you an ounce of pure gold for $20 - would you try to beat them down to $15?

Or would you do the smart thing and give them the $20 before they wised up?

What something is being sold for doesn't matter nearly as much as what it is actually worth.

But that means doing research before you get into a negotiation on price.
 
Likewise, if someone offered to sell you an ounce of pure gold for $20 - would you try to beat them down to $15?

Or would you do the smart thing and give them the $20 before they wised up?

What something is being sold for doesn't matter nearly as much as what it is actually worth.

But that means doing research before you get into a negotiation on price.

I found a development block which I passed onto my mother to purchase a couple years ago. Her partner asked how much we should lowball the property - I told him to pay asking price, which surprised them both.

They settled, developed and made a 50% net return after purchase, development costs and interest charges within 12 months. If they had lowballed someone else would have received that profit.
 
They settled, developed and made a 50% net return after purchase, development costs and interest charges within 12 months. If they had lowballed someone else would have received that profit.

Great example cjay.

OP - at the end of the day $2k is two fifths of fig all in the overall scheme of things.

My first IP I paid $129,000 for back in 2003 (for memory the asking price was $135k). I'd done a lot of research beforehand but I recall being somewhat annoyed at myself when the valuation came back at $127,000. It was worth over $200k within 12 months.

Another one... advertised at $160k - I found myself in a bidding war and got the deal at $163k. I was similarly annoyed (this time at the valuer who I thought was a dork for coming back with a $162k valuation). Anyway, that was worth about $220k within 6 mths.

So, lets say you do want the deal at $488k.

Then you should still want it at $490k - because really the difference is nothing.

But you got to do your research first.
 
asking price should be irrelevant

if I sold you my 1984 corolla for asking price $1m, and gave you a $200k dsicount, would you be happy?

I had an 1986 Corona, maybe I could trade your buyer a newer model car with an awesome model name and charge them only 1/2 the price of your discounted price! BOOM!
 
better question is...

how would you feel if you lost that property because you offered 2k lower?

many have said it before, a property's value is what someone is willing to pay for.
 
better question is...

how would you feel if you lost that property because you offered 2k lower?

many have said it before, a property's value is what someone is willing to pay for.

This is a great comment.

The last purchase I made was our current PPOR.

Admittedly I overpaid by $20k or so (it was like I was bidding against myself!) - but I couldn't care less. We've landed in an amazing suburb, in close proximity to work and schools and we don't plan in leaving this place for decades.

Cheers

Jamie
 
REA told me once that when it's about PPOR only the people who were underbidders in auction remembers the purchase price after a year.
 
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