How long can/should I go when offering to buy a house?

[aqua02]

Hello all
So I have browsed through the brilliant Offer to purchase thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.

 

[N@t3]

Hello all
So I have browsed through the brilliant Offer to purchase thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.

Our sellers wanted 1.2 Mil we dropped to 1.1 Mil so 100k off, so I am sure you can negotiate as the seller may be desperate.

 

[aqua02]

Thank you for the response. I was actually thinking of starting off at 10% less. The property is listed at R1295000.

 

[3WA]

How long is a piece of string? If the seller may be desperate, even 25% is okay. The worst they can do is say no. And if you don't get fixated on one place, rejection is not a problem.

 

[aqua02]

How long is a piece of string? If the seller may be desperate, even 25% is okay. The worst they can do is say no. And if you don't get fixated on one place, rejection is not a problem.

Lol that was a typo, actually meant to write how low can one offer .
Thank you for the advice, I will keep that in mind. I actually thought one had to be fixated on a place to know that it’s worth investing in.

 

[Snyper564]

How long is a piece of string? If the seller may be desperate, even 25% is okay. The worst they can do is say no. And if you don't get fixated on one place, rejection is not a problem.

This we looked at 15 houses before finding the "one" just be careful of one thing how is the market currently looking?

In our area there is not one single 3-4 bedroom house for sale, agents are desperately looking at the moment.

So there might be other prospective buyers that might buy it out under you.

All I can say is dont rush this. Also make 100% sure you can afford it etc as once you signed that OTP and finance is approved you cannot back out even at a bad interest rate you pretty much locked in.

Heard some horror stories here over the years.

 

[3WA]

Lol that was a typo, actually meant to write how low can one offer .

I didn't even notice the typo!

 

[3WA]

I actually thought one had to be fixated on a place

Obviously, do thorough homework, but don't obsess on getting one particular place at any price. Research neighbourhoods, body corporates (if applicable), and defects in a specific place, but always be prepared to walk away from a deal if you don't like the price.

Remember, buying a house at under market value can be a game changer financially.

 

[The_Mowgs]

Hello all
So I have browsed through the brilliant Offer to purchase thread and did not get an indication to this specific question. I am a first time house buyer and fairly clueless with how the market is.
I viewed a house that I like very much and scheduled a second viewing with the agend. I am thinking of making an offer should I still feel connected to the house on this second viewing.
The house has been on the market for just over a month, it was been leased but the tenants have put in notice so the seeker is sort of desperate to have the house sold (cannot afford to pay for 2 bonds as there’ll be no rent coming in).

my question is how much lower in percentage can I offer?

TIA.

You can literary offer them R5 for the property and the agent MUST present it to the sellers. Do your homework regarding the area and what similar places go for in said area.

I know you are probably scared they might reject it and move on to another offer but its part of the game.

I offered R400k less and the sellers accepted it and it was on a R2.7m property.

 

[aqua02]

This we looked at 15 houses before finding the "one" just be careful of one thing how is the market currently looking?

In our area there is not one single 3-4 bedroom house for sale, agents are desperately looking at the moment.

So there might be other prospective buyers that might buy it out under you.

All I can say is dont rush this. Also make 100% sure you can afford it etc as once you signed that OTP and finance is approved you cannot back out even at a bad interest rate you pretty much locked in.

Heard some horror stories here over the years.

Thank you, this is informative. I have done the pre-qualification already so that’s not an issue. Is it not possible to have something like “the interest rate has to be favourable” added to the OTP?
Guess we have to line up a few viewings as well just in case.

 

[aqua02]

Obviously, do thorough homework, but don't obsess on getting one particular place at any price. Research neighbourhoods, body corporates (if applicable), and defects in a specific place, but always be prepared to walk away from a deal if you don't like the price.

Remember, buying a house at under market value can be a game changer financially.

Thanks, I’ll remember this.

 

[aqua02]

You can literary offer them R5 for the property and the agent MUST present it to the sellers. Do your homework regarding the area and what similar places go for in said area.

I know you are probably scared they might reject it and move on to another offer but its part of the game.

I offered R400k less and the sellers accepted it and it was on a R2.7m property.

Interesting, I always thought I had offer close to the asking price, with a bit of negotiation of course.

 

[Snyper564]

Thank you, this is informative. I have done the pre-qualification already so that’s not an issue. Is it not possible to have something like “the interest rate has to be favourable” added to the OTP?
Guess we have to line up a few viewings as well just in case.

I believe this is actually something you can add, say the otp is only valid if you can get atleast prime for example. There is an otp thread maybe ask there.

 

[The_Mowgs]

Thank you, this is informative. I have done the pre-qualification already so that’s not an issue. Is it not possible to have something like “the interest rate has to be favourable” added to the OTP?
Guess we have to line up a few viewings as well just in case.

I believe this is actually something you can add, say the otp is only valid if you can get atleast prime for example. There is an otp thread maybe ask there.

Yes you should add this into the OTP. Rather head over to the offer to purchase thread and ask as many questions and advice as possible. This is a huge step in life and an expensive one so rather be sure than to sit with endless headaches going forward

 

[aqua02]

Yes you should add this into the OTP. Rather head over to the offer to purchase thread and ask as many questions and advice as possible. This is a huge step in life and an expensive one so rather be sure than to sit with endless headaches going forward

Thank you, I’ll copy this thread and paste it that side.

 

[TechGirl04]

Interesting, I always thought I had offer close to the asking price, with a bit of negotiation of course.

There's generally more room for negotiations on more expensive properties. In the R1.2m range, there's normally not 400k worth of negotiation space.

 

[Snyper564]

There's generally more room for negotiations on more expensive properties. In the R1.2m range, there's normally not 400k worth of negotiation space.

Might not even have 50k movement tbh.

As I said it all boils down to market conditions

 

[ToxicBunny]

There's generally more room for negotiations on more expensive properties. In the R1.2m range, there's normally not 400k worth of negotiation space.

Yeah no not 400k.. Not even close.. Maybe 100k at the outside if the property is reasonably priced for the area.

 

[kanzen]

I reckon the amount they would be willing to negotiate on is also based on how long they've owned the property for. If I had the place for 10 years I'd be more flexible (in theory) than having owned it for 1-2 years. My guess is that the rental from the tenants is covering the bond so they can work with you.

 

[Pineapple Smurf]

Rule of thumb back in my day in 2000 was 10%, I took a chance and offered 30% less because I knew from Estate Agent it was on the market for over 6 months and the seller was in his mid 80s and just wanted to return to Durban. He accepted my offer.

Then in 2010 I offered the seller of my existing flat an agreement to not use Estate Agents and meet him halfway with what they would take as commission, he accepted and we did the entire legal process ourselves.