Initial bid, % of asking price

Thanos

Hi all,

Just wondering if there is any way to know (roughly speaking) what you should bid (initial bid) on a property?

Does it change on the area/price of the house. As in if it is 90% would that apply to a house for 350000 as well as a house for 700000.........?

Thanks in advance.

Shambo

How long has the house been on the market?

Thanos

Shambo wrote: »

How long has the house been on the market?

Thats a good point, I guess this will affect the %.

Looking at a few places, some from a week on the market to longest about 6 months.

Victor

I would go much lower than 90%.

irlrobins

How long is a piece of string? Depends on lots of factors.

1) How long on market?
2) Any offers already on?
3) Is there a chain?
4) What condition is the house in?
5) What are similar properties in the market going for?
6) How good is the area and amenities?
7) Is it a new build or second hand?
8) Is it an investment or owner/occupier property?
etc

The approach you take depends on these factors and many more besides. Perhaps you need to give an specific example to get an appropriate response.

And of course you'll have the usual suspects on here saying "Market hasn't reached bottom, why are you buying??", "Offer less than 50%!", etc. :rolleyes:

Thanos

irlrobins wrote: »

The approach you take depends on these factors and many more besides. Perhaps you need to give an specific example to get an appropriate response.

e.g.
http://www.myhome.ie/residential/search/brochure/7-cypress-lawn-templeogue-dublin-co&-city/CETHA379277

or

http://www.myhome.ie/residential/search/brochure/25-ballyroan-heights-rathfarnham-dublin-co&-city/EQSJQ392274

Trampas

Thanos wrote: »

http://www.myhome.ie/residential/search/brochure/25-ballyroan-heights-rathfarnham-dublin-co&-city/EQSJQ392274

Am I correct in saying that it has one bathroom for 4 bedrooms. That is terrible. I can just imagine the queue to have a wash.

Nothing seems to be close around that price in that area so I would be slashing the offer

Senna

Percentage off asking price means nothing, as most asking prices are still far too expensive and even people reducing their prices are factoring in a reduced offer being made. You could have two people that purchase houses tomorrow, one gets a 20% reduction on asking and the other person get a 30% reduction, the person who got the 20% off may have got the better deal. There are any number of houses in estate with one asking 300k and the identical one next door asking 350k.
Best advice is to study that market closely, look for house that have a number of price drops, this might show they are more eager to sell and so may accept a bigger drop. When viewing house try and find out who the owner are, builders, speculator, investor etc might be more willing to cut their losses and run. Younger couple and families might have more to lose (NE maybe) and so cant take as big a hit.
Either way your first offer should be a lot less than asking, think 30-40% maybe certainly not 10%, the worst they can say is no and you can always raise an offer, its a lot harder to reduce an offer already made.

tenchi-fan

I put an offer on a house. It was on the market 2.5 months at €170,000. I bid €130,000 ("absolute max I could afford") and it was accepted.. hopefully the seller doesn't pull out!

jdivision

I've seen stuff from agents showing houses are selling in Terenure for E365 per sq ft in Terenure (actual selling price as opposed to asking price) so offer below that for Templeogue and Rathfarnham.