Is 10% off the market price of a house reasonable to ask?

R

RubyRuby

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Hi all,

We are interested in buying a house. The market price we think is a little much as do others that we have spoken to about it. Is 10% off the market price a reasonable amount to ask? Is there an average that seems to be the norm without going too far?

Many Thanks
Ruby
 
There is nothing to stop you offering less.

In general, you should fix in your own head the maximum amount you would intend to pay. Then offer less than that which gives you wriggle room.

If you like the house, the chances are that others do too. And the price of the house will be what the ultimate purchaser will pay.

mf
 
I presume you mean asking price rather than market price; yes, 10% is good, it indicates serious interest and is a basis for negotiation. The asking price would certainly have some wriggle room downwards in it though if there are other bidders you will be in competition with them. If there are similar houses in the area, do a search on the property price register to see what they have actually sold for. This may show what a realistic offer would be and also give you arguments in support.
 
Yes sunnydonkey, the asking price I should have said. Thank you both for your replies.

There is one other property that would be a close comparison. Both properties are 4 bed 2 bath. The other property was sold a few months back by the same auctioneer. The asking price of that house was 260,000 and we were told by the auctioneer that property sold for the asking price. I happened to check property price register last night and it was sold for 240,000. Dishonest Auctioneer!!

The property we are interested in has an asking price of 290,000, which, as I said seems a bit much. The house we are looking at is slightly bigger, it's finished inside, the outside is not finished. The first floor is concrete built. The rooms upstairs are quite small apart from the main bedroom. The boundary wall is not complete, the back lawn and yard are not done and there is no garage/shed. The other property is completely finished inside and out and is more private and all rooms are a good size. First floor not concrete.

I know I might be veering off my original question, but does the asking price of this property seem way too high. The auctioneer said that the vendors would not come down much as they are in a comfortable position. Not sure if he is bluffing.

Thanks
Ruby
 
RubyRuby said:
The auctioneer said that the vendors would not come down much as they are in a comfortable position.
Click to expand...

What he has actually said is that they are prepared to come down, which is a start at least. He wants you to put in an offer, as high as possible, but remember once in this will become the floor and you will have to negotiate upwards.
If the new house sells on the same basis as your comparitor then it should sell at around 260,000 - so, if you think this is correct don't offer more than this and leave yourself room to move upwards in negotiation.....
The tactics however are a matter for yourself and local knowledge... also depends on how badly you want this house and whether other bidders are involved.
 
Great, thank you sunnydonkey for your help and advice. Fingers crossed for a happy outcome!!
 
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