Jump to content

what's a reasonable amt to offer under asking price
are there secret rules?

  • Please log in to reply
20 replies to this topic

#1 spear_maiden

Posted 18 November 2012 - 12:10 PM


There's a cute 2 bed house that we've got our eye on.  Block is a decent size, bathroom needs reno'ing, fibro walls, kitchen is small and functional, looks like they painted if for sale.  The house is listed as comfortable to move into, and do up at leisure. Suburb has two sides - the nicer side where we wouldn't think twice about paying this amt and the down side where it feels over-priced.  This place is on the down side of suburb.

The asking price is $395, 000.  A few years ago, this place would be snapped up for this price but a quick search of recently sold properties and it appears over-priced.  Eg., 2 doors down and a reno'd 4/5 bedder on same size block went for only $469,000. We know this street was flooded in the Bris Jan floods so insurance would be premium.  Other 2 bedders in the area of the same vintage are going for $360,000.

What would you do with your offer?  360, 000 is a bit under 395,000 but we don't want to pay more than what the area is worth.  As a seller, would you even consider a price offer 30, 000 under?


#2 Guest_Sunnycat_*

Posted 18 November 2012 - 12:13 PM

I think you should offer what you think the property is worth.

#3 Tesseract

Posted 18 November 2012 - 12:16 PM

QUOTE (Sunnycat @ 18/11/2012, 01:13 PM) <{POST_SNAPBACK}>
I think you should offer what you think the property is worth.


#4 BetteBoop

Posted 18 November 2012 - 12:20 PM

10% below the list price is accepted as reasonable in a very flat market. This is why the vendor lists the price higher than they expect to get for it.

And keep in mind, the market is dropping weekly. If you pay $370k for this house, in 2 months when you settle, it could be worth $5-$10k less.

I wouldn't rush into anything in this market. As a prospective buyer, time is on your side.

#5 kez71

Posted 18 November 2012 - 12:21 PM

Offer what you think its worth. The seller could have listed it high hoping someone would pay it, but knowing they will probably come down in time. Id also check with an insurance company before offering to make sure you can insure it after being flooded..will give you more of an indication on its value too

#6 Lokum

Posted 18 November 2012 - 12:37 PM

QUOTE (BetteBoop @ 18/11/2012, 01:20 PM)

I wouldn't rush into anything in this market. As a prospective buyer, time is on your side.

Which market? Australia, and even Melbourne, has a higly segmented market at the moment. There are pockets of our suburb which are flat, and pockets which are running hot with surprisingly high auction results (clearance high 70s% and geting 15% above reserve.) know your own particular market, and also whats valuable to you.
Theres nothing offensive about an offer they dont accept, so dont feel pressured into offering higher just because of the price theyve put on it.

#7 beaglebaby

Posted 18 November 2012 - 12:50 PM

Offer whatever you think is fair, the worst that can happen is the seller says no!  We received some ridiculously low offers and just said to the agent we weren't even going to bother counter-offering, just tell them they were too far below our asking price.  They thought it was worth a try, in the end we got what we wanted, only about 4% down on the full list price.  

Across the road from us now was on and off the market for several years at a very high price.  2 people we know were interested in putting in offers about 20% under the asking price, the agent told them not to bother.  The vendor ended up accepting an offer 25% below asking price - the agent did himself out of money (and us out of decent neighbours!!)

You never know, just don't take the vendors response personally.

#8 BetteBoop

Posted 18 November 2012 - 12:52 PM

QUOTE (Lokum @ 18/11/2012, 12:37 PM) <{POST_SNAPBACK}>
Which market? Australia, and even Melbourne, has a higly segmented market at the moment. There are pockets of our suburb which are flat, and pockets which are running hot with surprisingly high auction results (clearance high 70s% and geting 15% above reserve.) know your own particular market, and also whats valuable to you.
Theres nothing offensive about an offer they dont accept, so dont feel pressured into offering higher just because of the price theyve put on it.

There may be a couple of anomalous post codes but across Australia, all evidence points to the property market being on a slow melt. I'm not sure that means the market is segmented in any real way.

#9 ms flib

Posted 18 November 2012 - 12:57 PM

I would give it a go.

The fact that it has fibro walls and could flood would concern me however. It might be worth continuing to look.

#10 Lokum

Posted 18 November 2012 - 01:02 PM

QUOTE (BetteBoop @ 18/11/2012, 01:52 PM)
There may be a couple of anomalous post codes but across Australia, all evidence points to the property market being on a slow melt. I'm not sure that means the market is segmented in any real way.

Averages are averages. There's still a housing shortage in major metro centres. Our municipality (socio-eco diverse, covers the edge of inner east to the edge of outer east) has clearance rates significantly higher than the melb clearance rate.

There are mining towns where you cant buy a house at all, and other towns where you cant sell a house for any amount. Yep, theres a national average and it's trending - that doesnt mean theres not significant segmentation.

#11 red_squirrel

Posted 18 November 2012 - 03:43 PM

I wouldn't put any offer on a house that is in a flood prone area.

If you still want to buy it I would go with the 360 ish offer or perhaps even lower.

#12 SeaPrincess

Posted 18 November 2012 - 03:49 PM

QUOTE (Studybug @ 18/11/2012, 10:10 AM) <{POST_SNAPBACK}>
We know this street was flooded in the Bris Jan floods

Don't buy it.

#13 skylark

Posted 18 November 2012 - 03:53 PM

Ditto to whoever said fibro and flooding = do not buy.

#14 spear_maiden

Posted 19 November 2012 - 02:36 PM

Thanks for all the replies.  Thanks BB for sharing the 10% "rule".

The house has just gone on the market apparently, so we're thinking the owners would probably turn down our lower offer.  Also, got my street wrong.  It was a street over that flooded.  Will definitely check out the effects on insurance of the postcode anyway.  Good to know that flood & fibro is a no go tho (I'm obviously very new to all this serious house hunting wink.gif ).  If it all looks good on thorough inspection, we'll put in the offer we think is reasonable and see how we go.


#15 SeaPrincess

Posted 20 November 2012 - 03:26 PM

QUOTE (Studybug @ 19/11/2012, 12:36 PM) <{POST_SNAPBACK}>
Thanks for all the replies.  Thanks BB for sharing the 10% "rule".

I actually disagree with the 10% rule. If you're familiar with the local market (price ranges, what's selling, what's not), it's better to put in an offer of what you think it's worth. While this may be 10% lower, I wouldn't offer 10% lower just because.  When we've bought and sold our own houses, we've never dropped or settled more than 3% lower than what was being asked.

But that's not what I came back for. Flooding is my dad's "thing" when he buys houses.  We lived in Graceville in the early 70's and when my parents bought that house, Dad went back through the flood records before buying. The house was high enough that there was no record of that area having been flooded and our house didn't flood in 1974 or this time around. I would be very wary of buying a house in an area that has been known to flood.

#16 tle

Posted 20 November 2012 - 03:41 PM

After recent news articles in our area I wuoldn't buy any house without first checking what it would cost to insure. The papers here reported about one lady who had lived in her house for 40 years and never had any flooding or stormwater damage and always insured with the one insurer. Her premium has just risen from $900 to $7500 in one year and the reason given was that she was at risk of stormwater damage. Another man (who is in a floodprone area) had his premiums rise from $1000 to $13,000 a year. The insurance costs more thanm the mortgage.

#17 MrsLexiK

Posted 20 November 2012 - 03:52 PM

I wouldn't write a house off because it flooded, depending on whether I was looking at building another house on block (like a qld or something) but that would looking at the actual block more so then the house.

#18 Coffeegirl

Posted 20 November 2012 - 04:09 PM

Friends of ours just signed a contract on a house on the weekend.   Owners wanted 795,000, the most my friends would pay was 720,000.   Owners turned the offer down.   Two weeks later, after three open homes and not a single nibble, the owners accepted the offer as they had purchased elsewhere and had to sell.

Worth asking why the owners are selling  wink.gif

Also as PPs said, make sure you check the flooding zone and insurance rates

As to the real estate trends.  Our friends above and purchased two suburbs away from us in South Sydney.  It's an older home that needs lots of renos done.  4 bedroom.  That area has had values drop a little over the past few years.  But the area that we have our house in has steadily risen since we bought 4 years ago.  Easily up by 30% on what we paid.  And that's based on bank valuation, not just the local RE guy.

#19 Always amazed!

Posted 20 November 2012 - 04:15 PM

Offer what you think ... Leave room for negotiation if you want..

Our house was on at $360 droped to $340 we offered $270 and got it for $285.

Depends on how desperate they are to sell ect!

#20 FomoJnr

Posted 20 November 2012 - 05:23 PM

Offer what you think it's worth. Our place was advertised at 435. We offered 405 and got a big no. They called back two week later and accepted.You just need to be prepared to walk away, they'll know you're serious. You never know, you might just catch them at a time when they just want to sell and move on!

#21 threeinnyc

Posted 21 November 2012 - 01:05 PM

QUOTE (BetteBoop @ 18/11/2012, 12:20 PM) <{POST_SNAPBACK}>
I wouldn't rush into anything in this market. As a prospective buyer, time is on your side.

Not really. Sorry BB. If the area is already have certain reputation for being good and well-sought after, the price still pretty much the same.  

1 user(s) are reading this topic

0 members, 1 guests, 0 anonymous users


The day my daughter almost drowned

We had six adults standing there, so I felt like I could relax a bit. After all, what could go wrong with so much supervision?

Sydney siege survivor names baby after victim Katrina Dawson

A Sydney barrister who survived the Lindt cafe siege has named her newborn daughter after her best friend who died in the tragedy.

Banishing bloat

How to avoid a bloated tummy

Here are some foods to eat in order to escape feeling ghastly and gassy.

The great new picture book for anxious kids

My son is a worrier by nature. I learnt long ago that it was completely pointless to say to him "Don't worry about it!".

Budget stripped more than $15b from families

The combined impact of the two budgets for low and middle income people was "devastating", new analysis by the Australian Council of Social Service shows.

Pregnant women urged to get flu shots

As the winter chill starts to arrive, NSW Health is urging pregnant women to get their flu shots.

65-year-old gives birth to quadruplets

A 65-year-old German woman, who already has 13 children, has given birth to quadruplets.

What you need to know about pregnancy and health insurance

It's not just waiting periods that couples need to consider - there are other factors to consider when thinking about health insurance.

Yummy mummy

Nicole Trunfio breastfeeds baby on Elle magazine cover

Australian model Nicole Trunfio has taken the concept of multitasking to a fashionable new level for Elle Australia.

Warnings after baby girl died while sleeping in bouncer

Parents have been warned about the dangers of letting babies sleep in bouncers and swings following the death of a three-month-old girl.

Coping with fatigue as a parent

Sleep deprivation is a real hazard of caring for a baby. But there are ways to manage the challenges of fatigue better.

A very 21st century issue: parents, parks and smart phones

It's not all the parents, and it's not all the time, but there is often at least one doing it. And sometimes, that 'one' is me.


Faulty washing machines linked to house fires

More than 80,000 faulty Samsung washing machines pose a fire threat in homes throughout Australia despite a nationwide recall of the machines.

'I had a lotus birth and I loved it'

Lotus birthing is not all that common, but for a number of women it feels like the most natural thing to do.

7 things you might not know about postnatal depression

Despite its widespread nature, there is still a great amount of mystery surrounding PND - and it's important to try unravelling as much of that as we can.

Is your family's car part of the world's biggest safety recall?

More than 50 million vehicles recalled for potentially lethal airbag fault - is your car affected?

Why drinking water can be deadly for babies

H2O is one of the necessities of life, but for babies a seemingly harmless amount of water can be fatal.

Mother-in-law faceplants during proposal

He had it all planned: a romantic proposal on a windswept beach. The whole family would be there so they'd all be able to celebrate the joyous moment together.

A preschooler suddenly goes mute - and it's not just shyness

When our son stopped talking, our sense of loss was painful and acute.

The mums who ask for a 'wife bonus'

They run their homes like domestic CEOs and work tirelessly to improve their family's social standing. And now, according to a new book, they want an annual perk from their husbands.

Woman shares photo of dimple on breast to warn others of cancer risk

A widely-shared Facebook photograph of a British woman's breast has raised awareness of a more subtle breast cancer symptom.

Starting a family despite a low sperm count

"I'd never really failed a test - how could I fail this particularly manly test?"

It's official: we must better protect our kids from toxic lead exposure

New guidelines have been released, aimed at reducing children's harmful exposure to lead. But they still don't go far enough.

Trouble-shooting toddler social skills

Chances are your toddler's behaviour is all completely normal - but here's how to tackle some common social problems.

Helping your first-born welcome a sibling

We did sigh with joy at the arrival of a royal princess - but, mostly, we sighed with pity at the sight of Prince George being taken to meet her.

Farewell, daytime nap

I've been in denial and I'm not too proud to beg, but it appears I must accept the fact that you have gone. I need to let you go.

The identical triplets who are one in 50 million

The father of identical triplets born in a Texas hospital says his three daughters, including conjoined twins, are "a miracle" sent by God.

Seven questions you should be asking about your health cover

If the last time you assessed your health cover was five years ago, there?s a chance it may no longer suit your needs. To ensure it?s still right for your family, click here for seven questions to ask.


What's hot on EB

How to use gas effectively in labour

Many women in labour don't use gas effectively and suffer more side effects than benefits. Here's how to get the most out of this pain relief option.

'He has gastro but that's okay, right?': sick kid etiquette

We cannot place all children who are sick in a bubble till they recover, but we can give other parents a choice about exposing their kids to them.

Ada Nicodemou: 'I can never be completely happy again'

Home and Away actress Ada Nicodemou has opened up about the loss of her stillborn baby.

10 things to consider when you're thinking about trying for a baby

Before you start tracking your menstrual cycle and reading up on the best positions to get pregnant, there are a few other things you may want to consider.

How special surgery and IVF can create a post-vasectomy baby

Cricket legend Glenn McGrath and his second wife Sara are expecting their first child together, thanks to IVF and a delicate surgical sperm retrieval process that helped the couple to conceive.

Belle Gibson's mother 'disgusted and embarrassed'

The mother of disgraced wellness blogger Belle Gibson has accused her daughter of lying about her childhood in an attempt to garner public sympathy.

Doctor's mobile phone 'left inside c-section mum'

A new mum claims a doctor left his mobile phone inside her after delivering her baby via caesarean section.

I'm a mum and I'm following my dreams

I want my kids to know that no matter what happens in life, you can still be who it is that you've always wanted to be.

Those first daycare days

I had this innate 'mum' moment the other day.

'If one person had listened, my life would have been so different'

Katherine's father will die in prison for the horrifying sexual abuse of his daughter. Yet she is the one with the true life sentence.

This new plan undermines breastfeeding and baby health at everyone's expense

Mothers, babies, the health system and the wider society are going to pay the price of this new budget.

Couple to celebrate terminally ill baby's birthday in unique way

Baby Jai Bishop has lived at Starship Hospital for the past seven months, with his parents flying back and forth from Hokitika, 1100km away, to be by his side.

Life On Mars

It's men who need 'retraining', not women

We are all responsible for our own behaviour. Telling victims to harden up is wrong.

Baby Gammy's dad tries to claim charity money

The biological father of baby Gammy has reportedly tried to access charity money raised for the little boy's medical costs.

Where are the childcare places?

It?s all very well to encourage women to work if they choose to, but how can the measures lead to increased workforce participation when women are once again left holding the baby?

The pain of not having babies and not knowing why

After seven years of wishing, hoping, crying, punching pillows and shouting "why me?!", the end result is more than I ever thought possible.

Getting your family finances in order

Whether you're after a new car for a growing family, a bigger house, or are just fixing up your finances, here are the basics on borrowing.

Mum shares graphic selfie to warn against tanning

A mum has shared a graphic photo of her skin cancer treatment as a warning to others.

Does parenthood make us happier?

We can certainly gain higher levels of happiness when we become parents, but the trick is to not get overwhelmed by the pressures of raising our kids.

No, having a dog is not like having a human child

It's obvious these people dote on their pets, but they're barking up the wrong tree.


Top baby names

Baby Names

The numbers are in and we can now bring you the 2014 top baby name list for Australia.

Essential Baby and Essential Kids is the place to find parenting information and parenting support relating to conception, pregnancy, birth, babies, toddlers, kids, maternity, family budgeting, family travel, nutrition and wellbeing, family entertainment, kids entertainment, tips for the family home, child-friendly recipes and parenting. Try our pregnancy due date calculator to determine your due date, or our ovulation calculator to predict ovulation and your fertile period. Our pregnancy week by week guide shows your baby's stages of development. Access our very active mum's discussion groups in the Essential Baby forums or the Essential Kids forums to talk to mums about conception, pregnancy, birth, babies, toddlers, kids and parenting lifestyle. Essential Baby also offers a baby names database of more than 22,000 baby names, popular baby names, boys' names, girls' names and baby names advice in our baby names forum. Essential Kids features a range of free printable worksheets for kids from preschool years through to primary school years. For the latest baby clothes, maternity clothes, maternity accessories, toddler products, kids toys and kids clothing, breastfeeding and other parenting resources, check out Essential Baby and Essential Kids.