buying offer

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ricko10

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I am looking at buying a house. i have seen it and im very interested. the house is on at 350.000. the background is that its a new build with builders finish(no kitchen ect) it has been on the market for 8 months and i am the first to see it. the builder has built 8 of these houses around munster and cant sell any of them so the EA pretty much said that he is desperate.
should i go in with a silly offer and see what happens. i was thinking about 290.000.
its in north cork
 
ricko10 said:
I am looking at buying a house. i have seen it and im very interested. the house is on at 350.000. the background is that its a new build with builders finish(no kitchen ect) it has been on the market for 8 months and i am the first to see it. the builder has built 8 of these houses around munster and cant sell any of them so the EA pretty much said that he is desperate.
should i go in with a silly offer and see what happens. i was thinking about 290.000.
its in north cork
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If the builder is in trouble then you have nothing to lose by going even lower IMO. If there hasn't even been another viewing in the last 8 months it is highly unlikely that it is going to be snapped up
 
ricko10 said:
I am looking at buying a house. i have seen it and im very interested. the house is on at 350.000. the background is that its a new build with builders finish(no kitchen ect) it has been on the market for 8 months and i am the first to see it. the builder has built 8 of these houses around munster and cant sell any of them so the EA pretty much said that he is desperate.
should i go in with a silly offer and see what happens. i was thinking about 290.000.
its in north cork
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Don't know why the EA would say something like that, however offer a resonable price(10% less maybe -315k) and you may get what you want.
 
EA may just want to make a sale and may not be acting with the vendor's best interest at heart.
Or he may be playing mind games.
Ultimately, up to you to decide.
You could offer 290k and see what happens but depends how much you want the house really, as discussed elsewhere, and if it goes to someone else, can you get another that would be just as good, and at what price.
You could also negotiate on getting him to finish the house to your spec as part of the deal, add the kitchen / convert the loft / do the tiling / lay flooring / a patio / whatever. Might be worth x to you but cost him half that to do. Good way to get a deal sorted out.
 
If you do make a low offer make it more attractive (if possible) by emphasising that you are not part of a buying chain (if that is the case) or that contracts will be returned within a short timeframe such as 3 weeks. The developer should be more open to a deal if he knows he will have the cash quickly.
 
Good points Camry, I agree with what you say there.

EA may or may not have the vendors best interests at heart, but he will want to make a sale as that is in his own best interest.

Anyway, whatever. The main point is, go ahead and make an offer if you want the house, as advised above, and bearing in mind DeeFox's advice, and hopefully you will get a good deal between one thing and the other.
 
Heres a different twist on similiar situation.Want to trade up,
have our own house on the market have already exceeded the asking (i know cant believe it either).

Now heres our problem,looking at new build built and on market nearly
a year nothing sold in the development in the last year either,have offered 12% below asking which we feel is a realistic price,EA says he
can only take 4.7% off asking on "builders instruction".

Am i missing something here surely he should be biteing my hand off!

Any comments opinions welcome.....

Confused.
 
What is the Maximum Price YOU are willing to PAY or give?
Make an offer that you are comfortable with only.

You could get someone else to negotiate the price for you.
You set the paramaters, they do the dealing.
This takes your emotions & feelings & nerves out of the picture.
 
Bearing in mind the that it probably cost the builder far less than 290k to build it i would'nt be worried about making a bid "too low", no such thing really.
 
Saw a quote from Richard Branson recently, something along lines of "If you're not embarassed by your first offer then you've offered too much".

You've got very little to lose by offering too little

Bear in mind that the EA is probably alot better at the psychology of haggling than you. Chances are there are probably plenty of similar properties for a better price.
 
Am i missing something here surely he should be biteing my hand off!
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Its a common misconception that a buyers market means any price will do.

The financial naivety is astounding and on parade often on this forum.
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Its really only two differnet schools of thought, those like yourself that believe that buyers should hold out as theres more to come and then there are others that believe it will recover and get better. Both believe the other is naive, but only time will tell.

Bearing in mind the that it probably cost the builder far less than 290k to build it i would'nt be worried about making a bid "too low", no such thing really.
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Again it doesn't matter how much it cost the builder to build the house it matters what he will sell for. The OP is like most people right now in that he is worried about getting a deal but still paying more than he could have. The current market is no different in that respect than any other time. Make an offer you are happy with and don't make one thats so low that you know you will be upping your offer in a weeks time. My advice is find a common ground go low enough but be realistic. I'd go with the offer of €290k if thats what you want but phycologically it might make him think harder if you were to go in with an offer of €300k
 
MR MAN

you suggest the op offer 300k 14% below the asking,
but i offer 12% below asking and it's any price will do ?? explain.
 
MR MAN

you suggest the op offer 300k 14% below the asking,
but i offer 12% below asking and it's any price will do ?? explain.
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My point wasn't that you were wrong to offer 12% below asking, but you shouldn't be surprised ('why isn't he biting off my hand') when that offer isn't accepted. The misconception is that one rule can be applied to all purchases.

It matters in that ppl are somehow embarrased to encroach on a builders 100% profit sometimes.
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100% profit sounds nice but I would say exception rather than the rule. A developer is happy to get a 20% return on a housing development. I do stand by the fact that the cost to the builder is irrelevent when deciding on whats a fair price.
 
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