How much to offer compared to the asking price for an apartment?

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Homer

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We are cash buyers thinking of buying an apartment for use by a family member.

It has been suggested that we make a provisional offer of around 50% to 60% of the asking price, but I would feel awkward about doing this and would be concerned that it might kill off any meaningful dialogue with the vendor.

Any suggestions or advice would be gratefully received.

Regards
Homer
 
You need to compare the appartment with other appartments in the same area - this will give you an idea as to whether the asking price is similar, less or more than equivalent appartments.

After that, you can decide on how muchg you are willing to pay - after all, that is the only thing that counts.
 
If you can look back at the price of the apartments during the boon and then offer 50/60% that would be more realistic as we dont know the price, it is hard to know if the asking price reflects the current market.
 
Dont be afraid to go very low as you can allways go back with a higher offer. I recently bought a house and got €80,000 off the asking price (but I was willing to walk away if it was not accepted).

It is a buyers market and apartments are very hard to sell.

Good luck
 
Thanks everyone. There are no comparable apartments on sale, but I did find some asking prices from 2006/2007. The current asking price is between 51% and 53% of the 2006/2007 asking prices. Of course, that doesn't mean they sold at those prices.

Regards
Homer
 
Hi Sue Ellen

I agree that a house would probably be better as a long term investment, but it's an apartment that we need (for various reasons that I don't want to go into online).

What I'm trying to do is to find out how to strike the right balance between getting somewhere that ticks most of the right boxes and not paying over the odds for it.

Regards
Homer
 
They're seeking,you say, under half the asking price of few years ago.

And you are wondering if you should offer nearly half of their present asking price? That is, about a quarter of the 2006/7 price.

PLEASE tell us their reaction....
 
oldnick said:
They're seeking,you say, under half the asking price of few years ago.

And you are wondering if you should offer nearly half of their present asking price? That is, about a quarter of the 2006/7 price.

PLEASE tell us their reaction....
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In my original post, I mentioned that someone had suggested that I should do this. You've captured the reason why I'm reluctant to make an offer that is a very deep discount on the current asking price.

On the other hand, I don't want to offer 90% and end up paying 95% if they would have been prepared to settle for 80% or 85%.

I know that every situation is different, but I was hoping for some anecdotal information on what others had done in a similar situation and how things had turned out.
 
oldnick said:
And you are wondering if you should offer nearly half of their present asking price? That is, about a quarter of the 2006/7 price.

PLEASE tell us their reaction....
Click to expand...

Not sure why everyone thinks the peak of 2006/2007 is what should be looked at. How about looking at the pre boom price. As far as I can gather people think that about half of this price is the 'real' value. Well the real value is what a seller will sell for.

There are a lot of distressed sellers out there so no one knows how low an offer has to be to be rejected, and as I said nothing ventured nothing gained. If offer if refused one can always offer a higher price but it's very hard to negotiate down. Also one can offer a price and if buyer is annoyed one can a new offer under a different name to avoid bad feeling.
 
Homer, as nobody here knows what type of apt,location etc it's difficult to say. if it's apt on a ghost estate in the middle of the bogs then its worth nothing and you can make any offer.

If its an apt in good condition, of the type/size you want and in the location you want -and there are no comparable ones for sale at a similar price (you mentioend that others are still asking 2006 prices) then I'd be amazed if you could get more than 10-15% off asking price.

I'm not saying don't offer half what they're asking - I'd be just interested /amused at their reaction...
... and,maybe,because the seller may be so shocked at a 40-50% reduction offer, that she'd make a counter -offer that would be lower than if you only offered a 10% discount.

Frankly, as a property owner (presently trying to dispose of a small two-bed in Dundalk at only 80k - any offers?) I hope people won't discount too much on present low prices -but obviously if I was buying I'd have the opposite opinion.

So, good luck and tell us what happened. And where -roughly- is this place anyway?
 
Thanks for the comments.

I don't want to give too many details, but the property is in Dublin in what would be considered a good location. The 2006/2007 prices I refer to are cached information from 2006/7 that I found on google.

Regards
Homer
 
Homer said:
the property is in Dublin in what would be considered a good location.
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Then I don't understand why you say there are no comparable apartments in Dublin to give you and idea as to price/value. You say a good location so that will hold it's value more so than other places.
 
I'm not saying there are no comparable apartments. There are lots of different apartments in different locations with hugely varying prices, but nothing directly comparable within the same development other than the 2006/2007 prices referred to earlier.

I appreciate that it's difficult to give advice without specifics, but I know that discussion of property prices is not permitted on askaboutmoney and I'm really just looking for tactical advice on how to structure an offer if we decide that we want to go after this particular apartment.

Thanks again.

Homer
 
House prices are now at 2002 prices which was typically 195K for a 2 bed apartment in Dublin 15, 230K Co. Dublin (South) and up to 250K in city centre. This would depend on sq ft, location and no of beds.
Offer 80% of what they are asking, its unlikely they will have lots of potential buyers.
 
Daisy2011 said:
House prices are now at 2002 prices which was typically 195K for a 2 bed apartment in Dublin 15, 230K Co. Dublin (South) and up to 250K in city centre. This would depend on sq ft, location and no of beds.
Offer 80% of what they are asking, its unlikely they will have lots of potential buyers.
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Im not disagreeing with this point, but its impossible to know (despite the 2002 levels statement being used by many different groups in many different reports), without a registry of actual sale prices, what something was worth in any year. All that is being referred to is the asking price - which as this thread itself shows - is not reflective of the selling price.

I live in a 2 bed apartment in south dublin. At the absolute height of the boom they were selling for 400k, asking prices were in the region 370k and people were bidding them up. Recently one sold for 180k - the asking price was 220k - I only know the selling prices in both of these cases as people who sold them told me.

Without a national register of actual selling prices people can only conjecture based on asking prices.

OP - I would offer what you think the place is worth. They can only say no, allowing you to come back with a higher offer if you really want the place.
 
Bronte said:
Then I don't understand why you say there are no comparable apartments in Dublin to give you and idea as to price/value. You say a good location so that will hold it's value more so than other places.
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This idea of good locations holding their value more than bad locations is something I can't get my head around. Look at the decline in values in South Dublin, the "best" location in Ireland (based on prices). Price falls there have been amongst the most spectacular in the country.

Generally property prices in "good" locations increased by more than those in "bad" locations during the bubble, therefore they should fall by more than prices in bad locations to restore equilibrium values. The idea that good locations will hold their value in a downturn is crazy.
 
Although tvman made logical argument it's difficult to agree or disagree because there are no sales of apartments in "poor" locations.

The only "good" locations are any locations where there is a reasonable rental demand. ("Reasonable" nowadays meaning less than awful)
 
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