Reasonable offer to put in on a house: asking price of €385k? (€360k?)

L

Lora

Guest
HI,

I was just wondering what a reasonable offer would be to put in on a house at the asking price of €385,000.

We are first time buyers, and are ready to move, and have seen a lovely house, which has no current offers on it.

This is a new process for us. In the current market, would it be reasonable to go in at €365,000?

Thanks,
 
Re: Reasonable Offers?

Lora, I'm trying to sell a house at min and frankly it's very tough out there. If I was buying I'd chance my arm big time,especially if I had my approval etc. and was ready to go, if they refuse you can always up your offer, I'd chance 360K and ask for the curtains thrown in :p
 
Re: Reasonable Offers?

Thanks burntfingers...as for the rest of your helpful opinions, I wasn't trying to speculate as to whether prices were going to drop or rise, simply looking for advice as to a reasonable offer.....
 
Re: Reasonable Offers?

cromulent said:
Anyone advising an offer below the asking price is speculating that houses in Ireland are overpriced and therefore likely to fall in value.

Anyone advising an offer above the asking price is speculating that houses in Ireland are undervalued and therefore likely to rise in value.

So unfortunately it is not possible to answer your question without breaking the rules of this site.
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Thats not true, I could advise that you should offer x% below asking in order to get the best possible deal regardless of what property prices are doing. The OP is looking for negotiation advice and not a summary of where we think the market is going.
 
Re: Reasonable Offers?

cromulent said:
Anyone advising an offer below the asking price is speculating that houses in Ireland are overpriced and therefore likely to fall in value.

Anyone advising an offer above the asking price is speculating that houses in Ireland are undervalued and therefore likely to rise in value.

So unfortunately it is not possible to answer your question without breaking the rules of this site.
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Is it just me, or does Cromulent seem to be the one pushing the discussion towards the changes in the market??

I just don't want to go in too low, and look like a naive buyer....
 
Re: Reasonable Offers?

Lora, at the risk of breaking rules here, you won't look naive you'll look like a hardass :p Shag it drop the EA a mail and make your offer, let them know you like the house and if you are a ready to go buyer, judge from their feedback where to go next. I know people are saying that you'd be letting other people make higher bids but surely the EA will just come back to you and ask if you can beat it? Have you anything to lose? Arm-chancing is an honourable Irish tradition - in any market...
 
Re: Reasonable Offers?

burntfingers said:
Lora, at the risk of breaking rules here, you won't look naive you'll look like a hardass :p Shag it drop the EA a mail and make your offer, let them know you like the house and if you are a ready to go buyer, judge from their feedback where to go next. I know people are saying that you'd be letting other people make higher bids but surely the EA will just come back to you and ask if you can beat it? Have you anything to lose? Arm-chancing is an honourable Irish tradition - in any market...
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Thanks again burnfingers....Think I need to get a bit ruthless!!!!
 
Re: Reasonable Offers?

One thing, 365k is only 5% under the asking price, that is very very little.

Try looking at www.irishpropertywatch.com to see how many times your property has been reduced in price and how long it has been on the market. Also see what price other houses in the area have been removed from the market at.

In today's market you should be looking for 15% - 20% off and negotiate from there.

If the property is only new to the market they may not be willing to negotiate yet. But if it is there 18 months with one or two price drops then they may be very open to offers.
 
Re: Reasonable Offers?

Ask the EA how long the property is on the market.
Has the price dropped since it first went on the market?
Ask the EA if there have been any offers. If so, ask why they didn't proceed.
Ask how long the vendor has owned the property (try and find out how much they paid for it by trawling the internet). This will tell you if there is room to negotiate.
Make it known that you are a First Time Buyer and have your finances in order and ready to proceed. Be very upfront about this.

Then base your logic on the length of time on the market at a rate of 5.5% (Deposit/mortgage rate). E.G. if the vendors sit on a €400K property for 1 year, they will have lost €22K. Therefore, €390K today is better than €400K in a year.

Base your decision then on what you can afford to pay back in a mortgage and what you consider to be a fair and reasonable price for the house.

If the EA says they will not take your offer, you have a decision to make:
A) Increase your offer
or
B) Leave it on the table and tell them to call you when they want it. This risks you being outbid and losing the property.
 
Re: Reasonable Offers?

Also, take anything the EA tells you with a large pinch of salt. They may tell you how long the property has been on the market "at this price" but they are unlikely to tell you it has been on the market for a year with no interest.

Believe it or not many EA's are still prone to phantom bidding etc as well. They have not adjusted to the new market.
 
Re: Reasonable Offers?

There is no information on the property only that it is "lovely".
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To my mind this is the key line in the op
This is a new process for us.
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i.e can you help, how do i proceed, will I be taken for a mug etc etc.

And unfortunately it is not possible to give a fair answer to that question without speculating on the overall direction of the market. Which is banned.
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Of course you can answer that fairly because my opinion could be that in any market you should start at a very low price and haggle up, everybody has diffenent angles. Some will say because of the market etc and we cant speculate because speculation is futile and leads to arguments that can't be backed up. It looks like you have a gripe about the ban which is fair enough but that shouldn't stop you or others giving advice to someone who is stating they are new to house buying.
 
Re: Reasonable Offers?

Thanks agin for all the advice guys, and to whoever posted it on propertypin.com!! By the time I posted it up, peoble had already been giving advice!!!

Cheers...gonna have to have a long hard think about what to go in at :)
 
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