Unreasonable offer?

Jesh1

guys/gals

I was hunting for a property some time ago and came across one i liked reduced from 420->395.
Given the current situation (eg Interest rate hikes & falling market) i offered 330. The EA told me they have already been offered 365 some time ago. The couple who offered this have recently moved on and found a different property. The Vendors will now,not take less than 355 for the property, as per the EA
Is my offer of 330 unreasonable? Or is the EA just looking after her own profit margin. I understand that the vendors may not want to sell below their target price but i cant help feel she has not taken my offer to the vendor.
Any Advice appreciated.

Jesh1

I should add.....I'm pretty sure the sellers are not in Negative Equity.

ricman

You could post your offer by letter to the seller if you have the adress, they may have told the ea , we wont accept anything under x euros.Look at daft.ie, are other houses in the area going for 330k.

Victor

Could I ask why you say "330" instead of "€330,000"? for a moment I though you were talking about rent.

Jesh1 wrote: »

Given the current situation (eg Interest rate hikes & falling market) i offered 330. The EA told me they have already been offered 365 some time ago. The couple who offered this have recently moved on and found a different property. The Vendors will now,not take less than 355 for the property, as per the EA

The difference in income for the estate agent between €330,000 and €335,000 is negligible. It is more likely the vendor is holding out.

Potentially, put a writing in offer and put a time limit on it.

Jesh1

Yes, Ricman/Victor i think the best course of action to take is to drop a written offer into the sellers with an expiration date. I did not want to offend by coming in too low (hence the orginal post), but i will be kicking myself if i dont try it.

Victor...330K or 330,000 is more appropriate.I see how this can cause confusion. Point noted.

Treehouse72

Jesh1 wrote: »

i offered 330. The EA told me they have already been offered 365 some time ago.

The technical term for this is a "lie". It's the stuff that comes out of a bull's behind. The fact the people who allegedly made this offer disappeared is pretty solid proof of such. It is almost comical how every property you bid on seems to have an offer just below asking. They are treating buyers like mugs and you must not fall for it.

I would say the offer to you of asking - 10% is a terrible one. The property's value will drop that much in the rest of the year. It will drop even more in the next few years due to:

> The non-existence of credit, a situation that is getting worse, not better
> Rising interest rates
> Net emmigration
> Rising taxes, including a possible property tax
> Still falling wages
> Still rising unemployment
> Negative sentiment
> The fact yields for professional investors are still way too low

There is no possible way this house will not fall more. It is simply impossible, unless they find a greater fool to catch the falling knife.

Here's what I'd do. Find a similar property that is for rent. Then, work out the price based on a gross yield of 5% (which is incredibly low by historical standards, but it's a starting point). Work it out by: Annual rent/Property price = Yield %age. So if the property rents for 12,000 pa, then 12,000/x = 5%....€240,000. For a 6% gross yield (perhaps more realistic) its €200,000. I would offer that amount perhaps +10% (to allow for an ownership premium). If they don't accept that offer, go back to them in a year and try again. It may well work then.

For your property to be worth €355,000, it would need to rent for no less than (x/355,000 = 5) around €1500 per month. For 6%, €1775pm. That amount rents you a hell of a lot of house. It is significantly more than most Dublin 3-bed semi-d's are clearing at.

billybigunz

No its very unreasonable and cheeky.

FFS don't let this greaseballs infect you with their manipulative kiddy language. It's a business transaction. It's either low or high, accepted or not.

Fol20

I remember when my dad was buying a house,one that he had thought about went from a starting bid of 500k to 750k after some other rivals,my dad had won eventually but after a long discussion,i persuaded him not to get it.The supposed rival bidder never came back to buy.Now 2 years on,i think they could only rent it since the recession hit.

Jo King

EAs generally tell the owners about every offer, but always give a recommendation. The EA is hired to get the best price for the owner. He is not interested in his commission, but he does want the business of the neighbours who will ask how much the house sold for. There is no way of knowing whether you are dealing with an obdurate owner or not. Be careful about contacting the owner behind the EA's back. If he learns about it he will not be well disposed to you in future.