Offer on new house

T

tk123

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Hi

I am thinking of purchasing a house, I wanted to know what is the norm for offering, Do you normally offer a percentage less than asking price?

Thank you
 
imo it depends on the price and the market value etc along with how much work it needs and what not.
 
I have just bought a house and what we did is we looked at the current state of the house. Ours needed work, the lady was asking 1 180 000. I did my reasearch and looked at what the house went for in the area, I saw that a three bed room house done the oad same size as the one we looked at went for 1100 000, I then asked a buddy of mine what it would cost to redo the bathroom as that was the one room that was in most need of doing. I offered her the amount less what it would cost to do the bathroom and got her to go with 1100 000.

If the house needs work then offer less what you think it would take to make the house up to the price she or he is asking.

And take a look at what the house in the area for the same size are going for that helps a lot. On property 24 you can get a evaluation on the house in question that shows you what the house is last valued at and what other house in the area sold for

Hope this helped.

And good luck exciting times for you on the way..
 
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Wanted to add. To me making an offer is a little like poker in some regards. Especially if other people are also making offers. You have got to try and assess what other potential buyers may be offering and what a good offer would be based on various factors of the property worth (area area, real condition) and try and hit the mark above other buyers, but below the asking price. It is a tough one - because maybe you find a real bargain, but so do others and they will be making offers too and you have to take this into consideration when making an offer. You could get real lucky and put a real low offer (20% - 30% off) and get what you are asking for. I think trusting your gut worked well for me. Be careful not to let your emotions blind you and affect such a big decision.
 
Look at a bunch of places in the area and get a feel for prices. Different estate agents will inflate the asking prices, anything from 10 to 25% above what they will accept.
 
When we bought our house we offered about 12% below asking price and this was accepted right away. There are a couple of ways of getting an idea of how much a house may be worth:
1) Municipal value can give a reasonable idea. Our offer price was the MV for the house (when it was valued 2 years previously to us buying it)
2) Property24.com and a few other websites show what price houses have sold for in an area. This should show you what other people have paid for nearby houses
 
Ask slightly less than you actually want to pay for it.

That way when they reject the initial offer and come back with a higher counter offer they feel like they are winning and you get what you want.

Go as ridiculous lowly as you can within reason, it can only go up from there. Don't ever buy a house because you "need to move" that's how you get screwed.
 
Your question - no offence - seems slightly naive. No harm in that...but I would suggest you actively counter that.

e.g. I have zero clue about houses....but I can probably get a couple of engineer friends to tag along. [*]

As for the actual approach...I'd try to low-ball it as hard as possible and then roll in said friends if things look like they might actually go down.

Disclaimer...I've been involved in various purchases but I've never signed on the dotted line so take the above as a random opinion.
 
Tk, always, and I mean always offer 15% less. Only then will you know what the real price is. The worst that can happen is that they can say no. It is usual practice out there to load the price by as much as 20%, just in case a buyer accepts it.
 
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