maund family

OK, we are about to put in an offer for a house we have found, infact first thing in the morning.
The house we have found has been on the market for well over 6 months now, it was $600,000 reduced to offers over $550,000. We are first time buyers not in any chain, and can move as quickly as they would like.
My question is offers over? does this mean they would reject anything lower?
and also we want to offer lower but where would be a good starting figure without insulting them?
Please any advice would be apprecitated, thanks Gill

Buzzy--Bee

Gill, I'm sure someone will be along in a mo to advise you on a good price to offer, I just wanted to point out to you that the concept of a "chain" doesn't exist in the same way as it does in the UK, so this isn't as much of an advantage for you as it would be in the UK.

BB

maund family

ok, thanks for the reply, just to add the owners of the house have brought else where and want to move asap.

Centurion

Offer what you think it's worth. The real estate agent is obliged to put your offer to the vendor. Be wary though because the real estate will show it his clients and say we can squeeze them for more etc. Best to appear that what you are offering is the highest you can pay.

Bon chance.

Sea Of Love

I personally wouldn't put in a bid over $500,000 but that is just me. You have to make it understood that that is your upper limit, regardless of whether it really is or not.
If they want more than you think the property is worth then you have to just walk away, don't get too attached otherwise your ROI is going to lag eventually and you will be the one to loose out.

Personally I couldn't care less if the vendor is offended by my bid, they can take it or leave it but at the possibility of scraping a significant amount off my mortgage I would be willing to offend

ABCDiamond

Have you checked on what the house last sold for, to give an idea of what the sellers may be basing their expected figure on ?

maund family

How do I find this out?

CrunchieFrog

Somone somewhere once said that if you aren't a little embarrassed by your offer then its too high.

fish.01

Remember the agent does not care as much about the sale price as they do about turnover. To keep things moving they have to get buyer and seller to meet. They will work on whoever seems the most likely to move price the most.

storm trooper

Find out what houses are going for in the same street/neighbourhood etc. This will give you an indication of the market value. Then adjust this based on how much you want the house +/-. Don't forget that the house has been on the market for a while now. Bid a few thou less than the maximum you are willing to pay. Make the offer stating the postive position you are in and perhaps an indication of how quickly you can exchange. If the offer is rejected then make your final offer which is your real max.

Don't be scared of making an emabrrassingly low bid. There is nothing personal in it at all!

GOOD LUCK!

maund family

Thankyou to all of you who replied. Going to have a discussion with the hubby now. Must admit feel alot better and less scared of offering a lower value especially as just been on realestate and a house in the same street is $100 lower, although it is a smaller plot.

ABCDiamond

http://www.onthehouse.com.au/property_research/

Example, of one house just checked:
Henry Street, WYNNUM
Last Sale Detail: Government Notified Sale: 08/08/2009 $455,000
Current asking price is $495,000 - $510,000.
This one is about 8.8% annual increase since purchase date.


and another:
Island Street, Cleveland
Last Sale Detail: Government Notified Sale: 12/10/2004 $275,000
Current asking price is $369,000
This one is about 5.0% annual increase since purchase date.

mark wool

make a really low offer, are they getting divorced, have they lost a job, all factors. Yes heartless but dod eat dog luv.

Mr Kilt

After watching many an eposide of Location Location Location (my wife makes me watch it )and following the wise Phil Spencers advice....go in with a firm low offer stating it is your best offer. If they don't bite walk away for a week or so. Then you can start upping it a little. Set yourself a cut off point though and when it gets to it just walk away.

lancastrian48

QUOTE]

Spot on Kilt...only offer what YOU think its worthand can AFFORD.