make me an offer
- Thread starter zaph
- Start date
Maybe (probably) offer LESS than you think the house is worth - that way you have some room to negotiate
There is no standard discount ppl expect. If there was we could all just look at the asking price subtract the standard discount = contract price.
One of the things we mention to our clients when buying is:
A selling agent’s or vendor’s asking price or listing price does not have to correspond to any logic whatsoever. It is a free market economy, so they can ask what they like. Therefore, just because you might get a property for say, $50,000 under the listing price, this may be meaningless if it was overpriced by $80,000 or more, compared to true market worth to start with.
Would depend on the location,if the vendor has money-marrriage problems one thing to think about is the real estate agent does not own the property ,the title is only in the vendors name or names and the RE only acts on behalf of the vendors,some people in this site have bought properties at under 30% over the past few months ,so 30% off is a good starting number,after all all the R-E can say is no,some AREA'S? in Brisbane the sales numbers are down by over 50% from the highs over the past few years..imho..willair..
I'd be looking to buy at 30 % under market at the moment , so starts somewhere under that .
Cliff
Cliff
If you are buying entry level property you will be lucky to get a 5% discount.
Offering 30% less in this environment won't get you anywhere.
It depends on the area though and how much demand there is
I'm in Newcastle NSW and looking to buy our first PPoR. Sometimes when searching online real estate sites, they will display towards the bottom of the page how much a couple of nearby properties sold for. Some of these will be clickable links to the original listing. You can then compare the original list and actual sold price.
*Sometimes* (in our area) I see up to 12% difference between the listing and final sale price. Even more rare is the vendor receiving their initial asking price.
The typical "discount" I see most often is about 4% to 6%.
We're looking at buying our PPoR. So I multiply the list price by 0.94 to give a realistic 6% off the vendor would probably sell the property for immediately. (We don't want to lose something 100% suitable for the sake of a couple of % more.)
You might also like to check out this site:
http://www.oldlistings.com.au
It's not of a lot of value on its own. Like I said - click on some sales in your area of interest - then see if the listings have clickable links at the bottom, to the same properties. Then you'll have the list and sale price to work out the "discount".
*Sometimes* (in our area) I see up to 12% difference between the listing and final sale price. Even more rare is the vendor receiving their initial asking price.
The typical "discount" I see most often is about 4% to 6%.
We're looking at buying our PPoR. So I multiply the list price by 0.94 to give a realistic 6% off the vendor would probably sell the property for immediately. (We don't want to lose something 100% suitable for the sake of a couple of % more.)
You might also like to check out this site:
http://www.oldlistings.com.au
It's not of a lot of value on its own. Like I said - click on some sales in your area of interest - then see if the listings have clickable links at the bottom, to the same properties. Then you'll have the list and sale price to work out the "discount".
I bought a place it Deception Bay recently....it was originally listed at about 270K...it did not sell.
The owner then eventually dropped it to 250k....and I bought it for 235K.
This represents a 6% drop in last price the owner set....though on the original price was about 13%.
I doubt very much you will find properties in the low end drop 30%...though I have seen properties listed for $1.8m eventually sell 1.45m....that represents a 20% drop.
So if you are waiting for a 30% drop...you might have to be Johnny on the spot for a very distressed buyer at the moment.
The owner then eventually dropped it to 250k....and I bought it for 235K.
This represents a 6% drop in last price the owner set....though on the original price was about 13%.
I doubt very much you will find properties in the low end drop 30%...though I have seen properties listed for $1.8m eventually sell 1.45m....that represents a 20% drop.
So if you are waiting for a 30% drop...you might have to be Johnny on the spot for a very distressed buyer at the moment.
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In asking this question you should ask yourself where is the market heading, is it steady, rising slightly or falling slightly?
Is the asking price in line with what similar properties have sold for?
Look at similar properties what are they asking?
Don't confuse asking price with market value.
Valuers for example look at sale prices not asking prices for that very reason.
Offer what you think it is worth based on your answers to the above questions.
If you do get it 30% below the asking price don't be surprised if it only values up to sale price.
cheers
RightValue
Is the asking price in line with what similar properties have sold for?
Look at similar properties what are they asking?
Don't confuse asking price with market value.
Valuers for example look at sale prices not asking prices for that very reason.
Offer what you think it is worth based on your answers to the above questions.
If you do get it 30% below the asking price don't be surprised if it only values up to sale price.
cheers
RightValue
Yep....the acid test is getting it through the Mortgage Insurance people.
I tend to put only put in 5% plus stamp duty in my deals. The LMI is capitalised. In the current environment if you can get a okay quickly...it is a good deal.
As for getting stuff 30% under the value...they are few and far between in the sub 300k market. 10-15% under market is more realistic.
I tend to put only put in 5% plus stamp duty in my deals. The LMI is capitalised. In the current environment if you can get a okay quickly...it is a good deal.
As for getting stuff 30% under the value...they are few and far between in the sub 300k market. 10-15% under market is more realistic.
This is only when you do not care if you want this house or not. 99% of cases offering 30% off asking will get a two-word answer. The second word is "off". And you can get 50% of opportunity to get "Never come back" on top.
I do not know about Brisvegas, but in Sydney buyers market is over. Want the property - do not ask for more than 5-10K discount.
Do not care - employ Chinese strategy. These guys palce offers on every property they see. Then choose among accepted offers (rarely any).
