€575 asking price -what 1st bid to offer?

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summersun

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wondering how low I should go with a firm first bid, house needs overhaul, very grubby from rental, I have nothing to sell, ready to go, tempted to use the 'its a bit beyond my budget but...' on market for plus 6 months like every other house in that area, 2 similar at 550 -on busier roads-... nearby, OR should i view and make no bid and wait and see if auctioneer gets in touch to offer lower??? :)
 
Re: 575 asking price -what 1st bid to offer?

I was in a similar situation and went sale agreed this week on a place. I got a 24.7% reduction on original price, we bid 100k under what they were looking for and it worked.
 
Re: 575 asking price -what 1st bid to offer?

View it and if you like it you are in a very strong position. There are very few ready with cash at that price range so you need to use that to your advantage. Now is a good time to buy with some uncertainty still in the market and depending on your area you could get yourself a bargain. Its on the market a long time and I would say that if they haven't at least gone through the effort of making it presentable for sale, they won't get any offers close to their asking. I would probably open at €500k. This will make them sit up and take notice and your arguments should follow the route of similar property for sale at €550k, needs alot of work, high stamp duty, uncertain market etc etc.
 
Re: 575 asking price -what 1st bid to offer?

thanks, I will start at 500k and include those arguments, I know by the estate, location and setting of the house that I would buy it, decor is changeable and would sooner apply a few buckets of magnolia than pay for recent floral wallpaper decor....
 
Re: 575 asking price -what 1st bid to offer?

dieter1, that 24.7% reduction was some achievement, even in the current market. Any particular negotiating tips or tricks? How did you play it?
 
Re: 575 asking price -what 1st bid to offer?

is the report above not typical of one coming from a stockbrokers practise? i'm not saying he's wrong, but traditionally the stockbrokers take a pessimistic property approach (because they want you to buy shares instead) whereas the banks (who are lending for purchases) take a more positive viewpoint. he who pays the piper etc..
 
Re: 575 asking price -what 1st bid to offer?

This is big news and a brave position to take.
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No it is not in my view. These types of reports are two a penny and invariably not worth the paper they are written when produced by stockbrokers. This is akin to Blodget recommending tech at atmospheric/no p/es in 2000 in an effort to shake out property investors into equities.
Goodbodies is going to have to downgrade almost all the best selling domestic stock (Bank of Ireland, Kingspan etc.).
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This would be big news though albeit most unlikely in view of vested interest!
 
Re: 575 asking price -what 1st bid to offer?

camel said:
dieter1, that 24.7% reduction was some achievement, even in the current market. Any particular negotiating tips or tricks? How did you play it?
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vendors had bought already, we had sold our first place, I think that the place was a little overvalued initially, we got a great deal. We could move quickly, they feared they could never sell the place.
 
Re: 575 asking price -what 1st bid to offer?

Camry said:
I can hear the equity sales desk at Goodbodies screaming from here.
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probably screaming SELL! SELL! SELL! to their clients, to be followed by BUY! BUY! BUY! in the not too distant future: commission on the double so they won't do too badly out of it!
 
Re: 575 asking price -what 1st bid to offer?

or more probably screaming at retail clients to SELL! SELL! to the folks in the institutions who are waiting to BUY!
 
Re: 575 asking price -what 1st bid to offer?

summersun said:
thanks, I will start at 500k and include those arguments, I know by the estate, location and setting of the house that I would buy it, decor is changeable and would sooner apply a few buckets of magnolia than pay for recent floral wallpaper decor....
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You should start well below 500k. I think 450k should be your starting point
What have you got to lose by going too low? If it is on the market 6 months it's highly unlikely you are going to miss out!
 
Re: 575 asking price -what 1st bid to offer?

Good luck anyway summersun.
I'm facing into a similar situation and intend in the next few weeks (have a couple of properties in mind) to offer way below asking price , we'll see what happens. I'll report back .
 
Re: 575 asking price -what 1st bid to offer?

Ask some friends of yours to go along and view the property and get one friend to put in an offer of say €450K, then a couple of days later get another friend to offer say, €440K. This will lower the vendors expectations and they may will think that they will have to make a substantial price reduction to shift it. Then you go in a couple of days later with an offer of €475K. The vendor may then view your offer as reasonable in comparison to the other low offers and is more likely to accept it that if you went straight in with an offer of €475K.
 
Re: 575 asking price -what 1st bid to offer?

how things have changed from the phantom bidders upping the prices of houses not too long ago!
 
Re: 575 asking price -what 1st bid to offer?

Times definately changing....called an EA a few days ago to make a basic query on a property and without even asking for a better price he started to tell me he was sure he could get me a better deal!
 
Re: 575 asking price -what 1st bid to offer?

how things have changed from the phantom bidders upping the prices of houses not too long ago!
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True and no-one seems to take any notice of the fact that the vendor is/could be going through emotional hell throughout this process.

If you follow Steve D's advice you will prob make the vendor believe there is great interest in your house rather than make them change their expectation. The valuation from the house wasn't plucked from the sky. For people that think that going in €100k+ lower than asking to think that their offer will be viewed as anything other than someone chancing their arm are seriously mistaken.
 
Re: 575 asking price -what 1st bid to offer?

It is that strange attitude that needs to change in this country before you can start contemplating a normally functioning property market.
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Some say strange others would call it realistic. What would you desribe as a normally functioning market?
 
Re: 575 asking price -what 1st bid to offer?

MrMan said:
Some say strange others would call it realistic. What would you desribe as a normally functioning market?
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I know it's a difficult question to answer but what's a realistic final selling price on a unit priced at 575 in your opinion?
 
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