Negotiating on House prices

Hi,

I know I cant be direct on house prices here, but here is my situation.
House priced at amount x and I offered 80% of x to vendor she dropped 5% of x in first conversation. Should I offer her 85% x now in 3-4 days or should I wait. House is in Dublin. I only want to go as high as 88% of x.
House is in Dublin and kind of ticks most boxes for me but I can still wait.

Thanks for your responses in advance.

Well this constitutes a risk for you (and only you can decide how badly you want the particular property) - but if I were you I'd outline to vendor/their estate agent, that you have to withdraw as price is just too far beyond your affordability even with the 5% reduction. Then let that sit for a few days... (to adopt this strategy you need to be prepared to walk away from this deal - your decision).

If she dropped 5% straight away I'd hang tough for a little while and wait until next week at the earliest. Given that the budget is so close you can use that as an angle for waiting and seeing.
are you not going through the estate agent?

Hi,

No its the builder itself selling the properties. I was thinking the same to wait a while so I will do so and then see what happens.

dereko1969 said:

Given that the budget is so close you can use that as an angle for waiting and seeing.

Click to expand...

+1 also given that its a builder I would be even more inclined to wait... see the article about the apartments in newbridge in the tribune at the wkd to back this up and what happened when the receivers went in. Its a lesson to everyone buying now and in the foreseeable future when negotiating.

Hi,
Last time when I called builder I advised let me talk with bank and see can they provide me more mortgage just to buy some time and advised her to feel free to call me in the mean time.

Got a call today from builder's office......Kinda happy about it that I stick to my guts and didnt call her first. They were enquiring whats the status of my dealing with bank, I said will let her know next week but feel free to contact me in the meantime. I think they are kind of eager to close he deal as well.


Now a MILLION DOLLAR question what should I do should I up my offfer from 80% of x to 85% or stick to my current offer.
Any advise will be appreciated.


Thanks...

Stick and as advised earlier, wait until after Budget.
There have been houses sold by receivers for around 100k in some parts of the country so unless you're in a mad rush for this exact house why up your bid?

The size of the discount is very relevant. If we are talking about a 250k house, you have offered 200 and are willing to go to 213, and he is at 237.5 at the mom so you are 10% apart.
However if it is 500k house you are at 400 now & are willing to go to 425 & they are at 475!
Best of luch

Don't increase offer .....

Thanks all for your reply. On further research I do think that there is no logic behind increasing offer.
We got news saying house prices have gone down by 40% since peak and had bottomed out with only 40K unsold houses country wide. Which is totally untrue real figure is around 250K and I do think wait for a year and we might be able to get a much better deal. There might be light at the end of tunnel.
So bottom line we might hold out for a while.

http://www.independent.ie/opinion/letters/unsold-property-estimates-way-off-the-mark-1544118.html (http://www.independent.ie/opinion/le...k-1544118.html)