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 Studybug

Posted 18 November 2012 - 12:10 PM

Hi

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?

Thanks!

#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.


Agree.

#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)
15088817[/url]']

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)
15088867[/url]']
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 Studybug

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.

Cheers.

#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

 

Win $1000 with Sea-Bands!

Three lucky fans can win a Sea-Band prize pack valued at over $1000 each, which includes two Sea-Bands plus a $1000 Eftpos gift card!

Misery loves Facebook

Facebook users are often criticised for only showing the positive, fun parts of their lives. But what about when it swings the other way, when someone uses it for the purposes of ranting about their children all the time, never posting anything positive?

Toddler's adorable impersonation of pregnant mum

Little Ellis has noticed his mum is walking differently lately, and his impersonation of her is hilarious.

'Forgotten baby syndrome' can happen to any one of us

When my third child was two months old, I strapped her into her car seat, then promptly forgot all about her. But she survived, unharmed, because it was winter, and I was lucky.

Join the Real Mums Test Drive Team

Five mums or mums-to-be will join the EB Test Drive Team and discover great items at an exclusive Big W event. (Sydney only.)

Ten things I've learned about motherhood

Never take a good night's sleep for granted. There is no logic like toddler logic. Standing on Lego hurts every time. These are the truths of parenthood.

Parenting past the toddler years: what's next?

Your baby has grown into a toddler, and now your toddler is fast approaching the preschooler stage. What can you expect as a parent?

Tips on what to pack in your hospital bag

Before giving birth I read countless lists, ended up overpacking just a little, and now know what I'll actually want to pack next time.

New app keeps tabs on your kids at childcare

Popular new technology lets parents know what their children are up to at childcare - but not everyone is a fan.

21 things I love about newborns

There?s an irresistible magic about newborns. Of course they're not all smiles and rainbows, but they are undeniably cute and remarkable in so, so many ways.

Kid-friendly hairdressers: who says haircuts can?t be fun?

I?ve found some salons who boast setups ideal for children ? you name it, they?ve thought of it. All are designed to make haircuts fun rather than stressful.

Labour pain relief may reduce risk of postnatal depression: study

Postnatal depression is a complex condition, but researchers say pain relief during labour may help some women.

Why we need better support for men after miscarriage

In a recent study, 85 per cent of men admitted feeling sadness after their partner miscarried, but almost half said they didn't share their feelings at all. What can be done to help them?

Mum in business: Kristy Chong

Kristy Chong is the managing director of Australian-made Modibodi underwear and a mum to Lucas, 6, Jason, 4, and Isaac, 6 months. She shares her advice for other mums thinking about starting their own businesses.

From toddler to preschooler: a developmental roadmap

So your toddler is growing up and will soon be entering the preschooler years. Here are a few ways to frame their development that will help you understand what?s going in those beautiful, funny, clever little heads of theirs.

Mum sacrifices an eye for her unborn baby

Motherhood is full of sacrifices, but this woman has made a life-altering one - and her baby hasn't even been born.

A grandparent by any other name

A growing number of grandparents are shunning tradition and going against conventional names - but a grandparent by any other name still gives the same awesome cuddles and kisses.

Photographer captures the beauty of adoption

The love of a family is usually tough to capture on camera. This is an exception.

When labour just doesn't happen

After three healthy kids, I can?t help feeling I?ve been a little ripped off. I missed out on something I had always wanted to experience, and now I?ll never get the chance.

Be careful what you say, your baby is listening

The importance of speaking to your baby even if they are not old enough to answer back has been highlighted by new research.

Share the little things that make you smile

We're giving away a Mountain Buggy nano, the ultimate travel stroller - and here are some of the great entries so far.

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

Download now: Essential Kids Activity Finder app

Got bored kids? Quickly find the best activities for kids wherever you are in Australia with the Essential Kids app.

 
Advertisement
 
Advertisement
 
 
 

What's hot on EB

Win a Mountain Buggy nano

We?re giving away the new Mountain Buggy Nano - the lightweight travel buggy! So show us the little things that make you smile for your chance to win.

Be careful what you say, your baby is listening

The importance of speaking to your baby even if they are not old enough to answer back has been highlighted by new research.

Win $1000 with Sea-Bands!

Three lucky fans can win a Sea-Band prize pack valued at over $1000 each, which includes two Sea-Bands plus a $1000 Eftpos gift card!

The beautiful moment a baby was born at the side of a road

It's not where she expected to give birth, but mum Corrine Cinatl is delighted that her daughter's roadside arrival was captured in a series of beautiful photos.

Doctor sings first Happy Birthday to newborns

His job is to deliver babies, but this US obstetrician also has a unique way of celebrating the miracle of life.

Join the Real Mums Test Drive Team

Five mums or mums-to-be will join the EB Test Drive Team and discover great items at an exclusive Big W event. (Sydney only.)

The Nappy Collective starts new drive

It's that time of year when the dedicated volunteers at The Nappy Collective do their bit to help out mums and children in need - and they need your help.

Baby shower cake wrecks

From misshapen cake babies to questionable text, from odd colour choices to internal organ recreation, these are the baby shower cakes that taste forgot.

Photographer captures the beauty of adoption

The love of a family is usually tough to capture on camera. This is an exception.

Pregnancy progression photo ideas

Want to record your pregnancy as your belly grows? Here are some creative, fun ideas for photo shoots along the way.

The myths and facts about "normal" breastfeeding

When it comes to successful breastfeeding, there is a wide variety to what is "normal", according to new research.

Tin can craft and DIY ideas

Got a few old formula, Milo or coffee cans around the house? Use these fantastic upcycling ideas to create items for around the house and yard.

Dads meet their newborn for the first time

Emotional photos of two fathers meeting their newborn son have resonated with viewers worldwide, attracting thousands of Facebook likes and shares.

Skin safety isn't just a summer worry

Lax about the slip slop slap with your kids as weather turns cooler? Here's a reminder as to why we have to remain vigilant for our children?s future health.

Personalised baby gifts

We've scoured the internet to find gorgeous personalised keepsakes and nursery decor to record baby name and dates. They make great gifts for christenings, name days and birthdays! (All prices in AU.)

Creative sleeping baby photoshoots

See how some parents and photographers have captured sleeping babies in unusual positions and using different props.

DIY kitchen and food hacks

DIY your way to a better kitchen and make cooking easier with our clever hacks. (Some content reproduced with permission from mashable.com.)

Winter warmers for babies and toddlers

Your baby or toddler will be nice and snug in these beautiful and fun winter pieces. Most are hand-made or knitted, and they're all designed to keep your little one toastie - and adorable!

 

Mind, body, beauty, life

Making time for me

We look at your wellbeing, covering health, relationships, beauty and fashion, mind and body.

 
Advertisement
 
 
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.