how much to offer under the asking price?

Hi all,
I am new to the property market and hoping to step onto the 1st rung of the ladder this autumn.

I have been looking at prices for the past 8 months and see from property price websites that there are significant price drops apparent in some cases.

I have been looking at some properties in Dublin 15 and think for what you get, the prices are fairly accurate - and I know that there's a bit of bargining potential there.

However - prices in D12 (Crumlin and Drimnagh) and D7 (Cabra) are confusing! There's 2 bedroomed houses on for 385K. (I must add that I have rented in D12 and D15 in the past and am very familir with the areas, and have friends living in D7).

I heard recently on an RTE1 radio show that it's possible to go in at 40K under this region of asking price, and my home owner friends also have given me this advice.

Is this good advice? What is the general rule of thumb? So if I saw a property I liked at 380, is it ridiculous to offer 340 (assuming that there are now other offers etc... ) Has anyone recently made a reduced offer in this region?

Secondly, I have recently acquired mortgage approval - does anyone know how long the approval lasts? i.e. if I cannot find a suitable property within the next few months (say 3), will I have to apply for it again? I'm just looking for information from folks with personal or professional experience in this please and thanks :B

Never ever underestimate the power of the mortgage approved buyer. You are an in excellant position.

Off the top of my head the following factors will have an effect on the offer accepted -

1. Sale Prices of other houses in the street in last 2 months
2. Urgency of vendor to move, booked new house? divorcing? in debt? Crap area?
3. Price of house vendor wishes to buy, if any
4. Unrealistic expectation given to vendor by Estate Agent
5. Your Bravado

As an average I go in at 40 below when offering, sometimes more depending on the above.

Recently purchased a new build for 400k down from 480k. So it can be done.

You can never offer too low. Some sellers are increasingly becoming more accepting of reduced offers and if you are not immediately looking to buy then why not put in some low offers which you would be really really really happy with in order to test the water.

The worst that could happen is they say no and by the autumn you should have a clearer idea of what constitutes a good and bad price for you.

that's great advice all, thank you. I guess I must stick to: "only pay what what you think it's worth" and to not become emotionally attached to a property (I saw a nice one last week... )
thanks again.

I'm in a similar situation and have bid under by 40,000 had one accepted but pulled out last year as prices were still shooting down have a bid in at the moment for 40,000 under it was rejected but no other offers so will wait and see. (Houses were in the 350,000-400,000 range)

Its hard not to become emotionally attached but in general there is always a similar house for sale nearby just decorated different so I'd advise set up a viewing quickly on another house if your bid is rejected helps you move on.

BYG really well put and objective. Emotion does play a big part but it can be balanced with common sense especially when the desire for a property is overridden by the savings you can make on the next property.