Haggling when buying property?

ShadowHearth

I know haggling rules and what to expect when I buy a car, but I would have a clue when it comes to property.

Is it even possible? For example I have seem some properties for 89k eu. They are on Market for a year, some more etc. So is it possible to drop price of property these days? How much haggle range I could get on 80-90k property? Which is on Market for a awile... I presume 1 year is awile?

Thanks!

ShadowHearth

100 people looked at it, but no one has any tips...

Or silence says it's impossible to knock price a bit...

JoeyJJ

Right this is how I imagine id handle it however the only time I put in a bit the EA had a bid at 96% so didnt manage it.

Ea: what do you think?

You: Yeah I'm definitely interested, however I have some concerns about losing my equity quickly if I went in at full asking price as the market is still falling, so on that note my offer is asking - 15-20%

The next part is either being told

1. Not acceptable maybe asked to make counter
2. They'll put it to the vendor
3. There is an offer above that
4. Get lost.


I wouldnt be afraid to haggle however play the game and show the ea you are serious.


Have a viewing next week where the seller is not using an EA, should be fun.

djmcr

ShadowHearth wrote: »

I know haggling rules and what to expect when I buy a car, but I would have a clue when it comes to property.

Is it even possible? For example I have seem some properties for 89k eu. They are on Market for a year, some more etc. So is it possible to drop price of property these days? How much haggle range I could get on 80-90k property? Which is on Market for a awile... I presume 1 year is awile?

Thanks!

If you are not embarassed by your initial offer its too high.

the_syco

ShadowHearth wrote: »

Is it even possible? For example I have seem some properties for 89k eu. They are on Market for a year, some more etc.

I'm going to take a wild guess, and say these are one bedroom apartments. Could be wrong, but you're not telling us.

Check the price it was a year ago. See how much price has fallen since. Check the last time it went down. Look at the rate of decline, and then continue it to now to see how much you may get away with.

ShadowHearth

Thank you doggy bear.

I have anather thread, and most of you know I am not going for stupid amount of money. So that interest is not that big of the factor. Plus it is low price property, even if it will losse 10 grand I wount care. As I am buying place for myself, not the next lad to resell on. I am looking for home, not investment.

I am not hiding any property, i haven't even decided yet, and I wount even look in to any perticular property untill I get approved for mortgage, I don't want to waste my and sellers time. Just to say: oh I did not got approved! Sorry!

I am asking, because I have no clue how does it go with property. I newer owned one or bought one or sold one.

Few lads at work helped me with this by now, still cheers for help, I already got alot of info from this part of boards.ie . Trust me, I don't do some sinister plan here, I justlook for place to live in...

Tea drinker

doggy Bear wrote: »

Two wrongs don't make a right.

Sorry, too, to the OP.

We should take this outside. Pick a window.

Pick a window? I'm coming in your living room window ;-)

Nah, what people perceive as making money on misery is right, but it's wrong time and wrong people. The banks, developers, agents, private house sellers etc etc all made money on the overpriced sale of the house to the buyers. The 2011 buyers are only paying realistic prices for a property, not getting a bargain or trying to drive families from homes. The banks / bailiffs / sheriff is doing this.


So the new buyers have no responsiblity towards the original sale, which is where the screwing happened, we just see delayed reaction from this.
I'd still feel odd walking into a repo's house, but I'm a sensitive soul ;-)

Bottom line is haggle to your hearts content, get the best deal for your family same as everyone else. Shoe on the other foot - I'm sure sellers all over the country are lowering prices so that lovely young couple can get on the property ladder.... not.

quozl

Ray Palmer wrote: »

It is really is not a very logical argument especially considering it suggests a further 15-20% drop in a very short time span."

You missed the poster's point, Ray. He wasn't making that argument, he was suggesting it as a polite way of saying to the EA that you think the house is seriously over-priced and you're going to offer 20% less. He was offering a haggling script - which is the whole point of this thread.

It's polite small-talk instead of just saying - I'm going to offer 20% less and giving no reason for it.

Ray Palmer

quozl wrote: »

You missed the poster's point, Ray. He wasn't making that argument, he was suggesting it as a polite way of saying to the EA that you think the house is seriously over-priced and you're going to offer 20% less. He was offering a haggling script - which is the whole point of this thread.

It's polite small-talk instead of just saying - I'm going to offer 20% less and giving no reason for it.

It isn't very polite or logical and doesn't mention that the house is overpriced but suggests they can't afford prices of houses they are looking at. EA are not the most patient people in the world and don't suffer fools gladly.

It is experienced advise to ignore such haggling banter and shoot straight from the hip and not get emotionally attached to house. You think the house should sell for less say so.

ShadowHearth

Holy crap... WTF happened here?

In the end of the day, I find out that I can haggle. Price us not written in stone. Knowing current Market I can hope to drop atleast 5k from asking price, which is alot or me!

As for time to buy?... I really don't care about that, I buy a place to live in, not make living out of it. I think alot of people forgot that houses were place to live in, not to make fast buck on a bubble syndrome... If my little terrains house will drop 10-20k I wont mind.

JuliusCaesar

ShadowHearth wrote: »

Price us not written in stone. Knowing current Market I can hope to drop atleast 5k from asking price, which is alot or me!.

As somebody said, before the whole thread deteriorated, if your opening offer isn't embarrassingly low, you shouldn't be making it. Offer half of what they are asking. If they are asking 80K:

You: yes, I'm interested, but I think the price is way too high for what it is/location/colour of paint/my mood today so I'm offering E40K.

Estate Agent: a) I can't bring that to the seller! And b) I've got an offer in for 75K (that I've just made up this very minute).

You: Well, pass it on to the seller. If somebody wants the property enough to offer 75K, let them. There are a lot more properties out there.

EA a day later: The seller won't go any less than 60K.

You: Alright, 45K.

Etc etc etc.

Make sure you go see at least 20 properties! And put no offers in at all until you've seen that many!! You'll have a much better idea of the market, the prices, what is available at that stage.

The_Conductor

Guys- do you have any idea of how many off-topic posts I've deleted in this thread? 23- from 6 different posters.

Please read the original post and respond to it- feel free to diverge if your divergence is a logical progression- however bickering over vested interests, interest rates, Marian Finnucane and a rake of other bizarre ideas- mostly relating to interest rates- has precious little to do with the original post- which is on haggling when purchasing property.

If you want to hold a discussion/conversation about interest rates- and/or anything else- I have no issue with it whatsoever- but please start a new thread- and don't hijack other people's questions/posts.

I need coffee.......

Taltos

ShadowHearth wrote: »

Holy crap... WTF happened here?

In the end of the day, I find out that I can haggle. Price us not written in stone. Knowing current Market I can hope to drop atleast 5k from asking price, which is alot or me!

As for time to buy?... I really don't care about that, I buy a place to live in, not make living out of it. I think alot of people forgot that houses were place to live in, not to make fast buck on a bubble syndrome... If my little terrains house will drop 10-20k I wont mind.

OP - a poster above said it - if you don't feel ashamed by your offer then you are offering too much.

It's all relative to the value of the house/property - 10 to 15% to me is not unreasonable - all this does is set your lower limit and you work up from there as the seller works down from theirs.

I bought last year - my initial offer was 16% below asking - not calculated - just what I felt the property was worth with a little edge taken off. Unfortunately there were other bidders who immediately went right in with their 10% and then withdrew - so i got stuck with 5% off.

At the same time I was selling a terraced - did not get one offer - not even something silly like my original 16%... So - it is still a buyers market. Being realistic - I would have probably settled at a 5 to 10% drop.
Your call - key thing is to let the EA know that you are serious - you have the money and are ready to move if the vendor is.... Remember confidence

Like my coffee.... mmmmmm coffee

Ken.

A friend of a friend came home from canada to settle down. The guy is a doctor and had saved up a tidy sum. He wanted to buy a house and seen the perfect one that had at the time they were built were selling for €325,000 and are now €145,000. the guy said to the EA i'll give you €250,000 cash(well bank transfer of course) right now for 2 of them side by side. The ea told him to talk to the builder who was also the seller and the builder nearly bit his hand off and also got work modifying 2 2bed townhouses into one massive 3 bed fully detached house.

My point is maybe go directly too the builder/seller and make an offer.

Ray Palmer

JuliusCaesar wrote: »

As somebody said, before the whole thread deteriorated, if your opening offer isn't embarrassingly low, you shouldn't be making it. Offer half of what they are asking. If they are asking 80K:

You: yes, I'm interested, but I think the price is way too high for what it is/location/colour of paint/my mood today so I'm offering E40K.

Estate Agent: a) I can't bring that to the seller! And b) I've got an offer in for 75K (that I've just made up this very minute).

You: Well, pass it on to the seller. If somebody wants the property enough to offer 75K, let them. There are a lot more properties out there.

EA a day later: The seller won't go any less than 60K.

You: Alright, 45K.

Etc etc etc.

Make sure you go see at least 20 properties! And put no offers in at all until you've seen that many!! You'll have a much better idea of the market, the prices, what is available at that stage.

Have you ever actually tried this or is just a theory?
I would not expect an EA to continue to talk to you from my experience. I can imagine a friend of a friend saying they did this and it worked.

ravendude

Here's my tips:

1/ Be patient. This is the important one. Rushing the negotiation process will cost you dearly. To some extent, it is a battle of who gives in first.
2/ Convince yourself that "there will always be another house". ie. If you miss out on this one, its not that big a deal. The EA will sniff it straight away if you have a strong emotional attachment to the property, and will take you like a lamb to the slaughter.
3/ Under no circumstances tell the EA how much you have to spend, or how much you have mortgage approval for.
4/ Make no decisions there and then on the phone. Everytime, tell them you need to talk it over with someone (eg. the wife, or your father).
5/ If you need to increase your offer, do so in small amounts, - especially if there is another bidder.
6/ Tell the EA at the beginning that you will not be getting into a bidding war under any circumstances. Tell the EA that if another bidder comes along they are welcome to the house (you can go back on this later, its no big deal). Even if you don't want to leave it there if someone else comes into the picture, its no harm letting the EA know you are reluctant to do so.
7/ When you put in your "serious offers", tell them at the time that that's it, that's all you can afford and you won't be going higher if its turned down. Leave it a week or two if it is turned down before raising your offer. Expect a few rounds of "thats the best I can do, sorry".

Anyway, that's how I'd approach it, others may do it differently, it's not an exact science.
A lot has to do with your overall demeanor, and the impression you give of how badly you want the place. Give the impression you are very willing to walk away, but that you aren't a time-waster at the same time.

RealJohn

Ray Palmer wrote: »

Have you ever actually tried this or is just a theory?
I would not expect an EA to continue to talk to you from my experience. I can imagine a friend of a friend saying they did this and it worked.

Yeah, this is my feeling here too but I'd be interested in finding out if anyone has any experience of this sort of thing.

From my own point of view, if I'm looking to spend (ideally) less than 230Kish, am I wasting my time looking at properties in the 275-300K region? Will the EA just dismiss me as a time-waster if I come in with an offer of 60-70% of the asking price?

Balmed Out

Real John I think that you can definately look at those houses but obviously some houses are more realistically priced then others. Also its a buyers market so only an idiot estate agent would blow someone off completely even if the house is valued far more then the offer just in case the buyer may be interested in another of his property or due to the falling market it enters that price range at a future date.
There was a house near me which rumour says went for 120000 but was listed at 230000.

billyhead

Hi,

I am thinking of buying a 3 bed end terraced house for 220,000 listed price. How much could I reasonably be expected to get this for with the lowest offer?

mari2222

depends how anxious the seller is to offload it, and whether anyone else wants it.