How much to offer on house??
Mar 26th 2006, 9:25 am
#1
‹(•¿•)›
Thread Starter
Joined: Feb 2006
Location: Taringa
Posts: 190
How much to offer on house??
We have found a house we like and are considering making an offer to purchase the place this week...We have a 50% cash deposit from our UK house sale and have an agreement with the bank for the other half..No problem there...Problem is how much to offer for the opening gambit so as not to go to low to insult owners but not too high that in the inevitable negotiations we pay too much for the house.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
Mar 26th 2006, 9:53 am
#2
Australia's Doorman
Joined: Jan 2005
Location: The Shoalhaven, New South Wales, Australia
Posts: 11,056
Re: How much to offer on house??
Originally Posted by Superstar
We have found a house we like and are considering making an offer to purchase the place this week...We have a 50% cash deposit from our UK house sale and have an agreement with the bank for the other half..No problem there...Problem is how much to offer for the opening gambit so as not to go to low to insult owners but not too high that in the inevitable negotiations we pay too much for the house.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
Mar 26th 2006, 10:34 am
#3
BE Enthusiast
Joined: Sep 2005
Location: gold coast
Posts: 657
Re: How much to offer on house??
Originally Posted by Hutch
Speak to the agent - tell them you're interested but it's 30k more than you can manage - see what sort of response you get. The swiftness of the reply will tell you everything you need to know - also do a bit of checking see if it's been reduced previously.
good luck thow- i argee with hutch try cheeck responce first! then you can alway go up!
hugs gee x
Mar 26th 2006, 11:13 am
#4
Loving it in Bundy
Joined: Sep 2003
Location: Bundaberg, Australia
Posts: 1,775
Re: How much to offer on house??
Originally Posted by Superstar
We have found a house we like and are considering making an offer to purchase the place this week...We have a 50% cash deposit from our UK house sale and have an agreement with the bank for the other half..No problem there...Problem is how much to offer for the opening gambit so as not to go to low to insult owners but not too high that in the inevitable negotiations we pay too much for the house.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
We moved into our first Oz home 20th Feb. We offered full asking price but that was purely because we loved the house and wanted to make sure we got it. It worked in our favour as a few minor issues came up in the pest and buildings inspection such as a leaky garage roof and a few trees that needed to be removed as they were too close to the pool. We managed to wangle $15,000 off asking price.
We were also eligible for $7k grant but not entitled to stamp duty reduction on house (states that it has to be first home anywhere in world) but did get some stamp duty reduction on mortgage, if that makes any sense.
Good luck.
Sarah
Mar 26th 2006, 11:17 am
#5
Australia's Doorman
Joined: Jan 2005
Location: The Shoalhaven, New South Wales, Australia
Posts: 11,056
Re: How much to offer on house??
Originally Posted by teach
but not entitled to stamp duty reduction on house (states that it has to be first home anywhere in world)
Mar 26th 2006, 2:35 pm
#6
now just Shaun...
Joined: May 2005
Posts: 483
Re: How much to offer on house??
Originally Posted by Hutch
How would they check your prior home-owning credentials in the UK anyway?
Although the fact that you may pay cash for the house could give it away!?!
Mar 26th 2006, 3:06 pm
#7
Australia's Doorman
Joined: Jan 2005
Location: The Shoalhaven, New South Wales, Australia
Posts: 11,056
Re: How much to offer on house??
Originally Posted by teach
We were also eligible for $7k grant but not entitled to stamp duty reduction on house (states that it has to be first home anywhere in world) but did get some stamp duty reduction on mortgage, if that makes any sense.
First Home Plus, the NSW Government’s stamp duty scheme for first home buyers, provides exemptions or discounts on transfer stamp duty and mortgage duty for first home buyers and builders in NSW. From 4 April 2004, homes valued up to $500 000 are duty-free for first home buyers. Discounts are available on stamp duty between $500 000 and $600 000. First home buyers purchasing a vacant block of residential land will pay no stamp duty on land valued up to $300 000. Discounts are available on stamp duty between $300 000 and $450 000. The new discounts apply equally to first home buyers anywhere in NSW. Who is eligible?
There is no income or assets test to qualify for First Home Plus. The exemptions and discounts apply to first home or land contracts signed on or after 4 April 2004. Different eligibility criteria applied before this date.
You are not eligible if any of the purchasers has previously received benefits under First Home Plus. However, since 1 July 2001, First Home Plus benefits apply where a purchaser, who has previously received First Home Plus benefits, is acquiring an interest in a property solely for the purpose of assisting the other purchaser or purchasers to obtain finance.
You qualify for the scheme if at least one of the purchasers has never owned and occupied a residential property in any State or Territory within Australia.
You are not disqualified if you have owned vacant land or a commercial property.
Companies, partnerships, trustees, a business premises, holiday house or renovations to an existing building do not qualify.
Mar 26th 2006, 3:12 pm
#8
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: How much to offer on house??
Originally Posted by Superstar
We have found a house we like and are considering making an offer to purchase the place this week...We have a 50% cash deposit from our UK house sale and have an agreement with the bank for the other half..No problem there...Problem is how much to offer for the opening gambit so as not to go to low to insult owners but not too high that in the inevitable negotiations we pay too much for the house.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
We are thinking about offering asking price minus 10% and are prepared to meet halfway if negotiated in that direction meaning we end up paying 5% less..Is this typical over here or is it different to the UK house buying scene?
The house is here in Brisbane and we are first time buyers and therefore eligible for the $7K grant...the thing is are we given a discount on stamp duty too?...I seem to remember reading something somewhere online but cant find it now
Thanks for any help.
when buying dont even think about whether they are going to be "insulted" by your low offer you can always offer more but never less
when we bought our last home they wanted 84K we offered a hell of a lot less and eventually negotiated to 74k which they accepted
again personally i wouldn't think twice about offering alot less in the end its business not personal
best of luck
regards Steve
Mar 27th 2006, 4:23 am
#9
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Thread Starter
Joined: Feb 2006
Location: Taringa
Posts: 190
Re: How much to offer on house??
I spoke to the agent this afternoon and it seems the buyers would want the asking price minus a small concession to negotiations 
He would say that...
Things work slightly differently here with the offer and contract...We were told we would have to put an offer in writing which the vendor could either accept or open negotiations on the price...If we finally both agree on a price the contract is signed and becomes a legally binding contract that the vendor cannot get out of...We would have clauses for inspections and finance which could collapse the deal if we did not get a satisfactory report from the building and pest reports and also if we did not get the required finance...We also get a 5 day cooling off period here in QLD...Not sure if that is Australia wide.
For the record the house is for sale at $469k and we were told that is was under contract for close to that amount but the buyer could not get finance...Again the slippery snakey agents would say that
We are going to make an offer of $420k but are prepared to go to $455k...Just hope the guy who is selling the house does not read this board
He would say that... Things work slightly differently here with the offer and contract...We were told we would have to put an offer in writing which the vendor could either accept or open negotiations on the price...If we finally both agree on a price the contract is signed and becomes a legally binding contract that the vendor cannot get out of...We would have clauses for inspections and finance which could collapse the deal if we did not get a satisfactory report from the building and pest reports and also if we did not get the required finance...We also get a 5 day cooling off period here in QLD...Not sure if that is Australia wide.
For the record the house is for sale at $469k and we were told that is was under contract for close to that amount but the buyer could not get finance...Again the slippery snakey agents would say that
We are going to make an offer of $420k but are prepared to go to $455k...Just hope the guy who is selling the house does not read this board
Mar 27th 2006, 4:28 am
#10
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: How much to offer on house??
Originally Posted by Superstar
I spoke to the agent this afternoon and it seems the buyers would want the asking price minus a small concession to negotiations He would say that...
Things work slightly differently here with the offer and contract...We were told we would have to put an offer in writing which the vendor could either accept or open negotiations on the price...If we finally both agree on a price the contract is signed and becomes a legally binding contract that the vendor cannot get out of...We would have clauses for inspections and finance which could collapse the deal if we did not get a satisfactory report from the building and pest reports and also if we did not get the required finance...We also get a 5 day cooling off period here in QLD...Not sure if that is Australia wide.
For the record the house is for sale at $469k and we were told that is was under contract for close to that amount but the buyer could not get finance...Again the slippery snakey agents would say that
We are going to make an offer of $420k but are prepared to go to $455k...Just hope the guy who is selling the house does not read this board
He would say that... Things work slightly differently here with the offer and contract...We were told we would have to put an offer in writing which the vendor could either accept or open negotiations on the price...If we finally both agree on a price the contract is signed and becomes a legally binding contract that the vendor cannot get out of...We would have clauses for inspections and finance which could collapse the deal if we did not get a satisfactory report from the building and pest reports and also if we did not get the required finance...We also get a 5 day cooling off period here in QLD...Not sure if that is Australia wide.
For the record the house is for sale at $469k and we were told that is was under contract for close to that amount but the buyer could not get finance...Again the slippery snakey agents would say that
We are going to make an offer of $420k but are prepared to go to $455k...Just hope the guy who is selling the house does not read this board
best of luck guys
regards steve
ps just remember that all lying basterds are estate agents
oooops did i really say that
Mar 27th 2006, 4:31 am
#11
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 15,526
Re: How much to offer on house??
Originally Posted by Superstar
I spoke to the agent this afternoon and it seems the buyers would want the asking price minus a small concession to negotiations He would say that...
Things work slightly differently here with the offer and contract...We were told we would have to put an offer in writing which the vendor could either accept or open negotiations on the price...If we finally both agree on a price the contract is signed and becomes a legally binding contract that the vendor cannot get out of...We would have clauses for inspections and finance which could collapse the deal if we did not get a satisfactory report from the building and pest reports and also if we did not get the required finance...We also get a 5 day cooling off period here in QLD...Not sure if that is Australia wide.
For the record the house is for sale at $469k and we were told that is was under contract for close to that amount but the buyer could not get finance...Again the slippery snakey agents would say that
We are going to make an offer of $420k but are prepared to go to $455k...Just hope the guy who is selling the house does not read this board
He would say that... Things work slightly differently here with the offer and contract...We were told we would have to put an offer in writing which the vendor could either accept or open negotiations on the price...If we finally both agree on a price the contract is signed and becomes a legally binding contract that the vendor cannot get out of...We would have clauses for inspections and finance which could collapse the deal if we did not get a satisfactory report from the building and pest reports and also if we did not get the required finance...We also get a 5 day cooling off period here in QLD...Not sure if that is Australia wide.
For the record the house is for sale at $469k and we were told that is was under contract for close to that amount but the buyer could not get finance...Again the slippery snakey agents would say that
We are going to make an offer of $420k but are prepared to go to $455k...Just hope the guy who is selling the house does not read this board
I'd twist the Estate agents arm, by having a cheque written out for 22,000 bucks deposit, and offer 420,000 bucks. with the 30 day settlement.
Be sure he knows your are serious and you will walk away if he doesnt negotiate.
If the vendor cannot move by that period, tell them that you are willing to rent the property to them.
I know a fair few people that are into housing investment.
Last edited by ozzieeagle; Mar 27th 2006 at 4:44 am.
Mar 27th 2006, 4:36 am
#12
BE Enthusiast
Joined: Jul 2005
Posts: 936
Re: How much to offer on house??
Originally Posted by gina
seem to remeber somewhere, 20% was a resonable amount to drop?
good luck thow- i argee with hutch try cheeck responce first! then you can alway go up!
hugs gee x
good luck thow- i argee with hutch try cheeck responce first! then you can alway go up!
hugs gee x
Mar 27th 2006, 5:09 am
#13
Superfreak!!
Joined: Jan 2004
Location: Thornlie, Perth, W.A.
Posts: 1,177
Re: How much to offer on house??
Yeah, we bought a house recently in Perth ($270k). Since we moved in the value of it has gone up by at least 10% (in 3 months!!). Crazy.
Different story on the other side though apparently, so I`d offer what you want and see if they sell it or negotiate. Make sure you have clauses for the pool to have proper fencing and is all registered and legal though as well as all the electrics, building, etc. In fact, if they do have a pool there, get the local pool inspector around to check it out. Don`t trust any estate agents at all!! We did, and got stung (long story).
Different story on the other side though apparently, so I`d offer what you want and see if they sell it or negotiate. Make sure you have clauses for the pool to have proper fencing and is all registered and legal though as well as all the electrics, building, etc. In fact, if they do have a pool there, get the local pool inspector around to check it out. Don`t trust any estate agents at all!! We did, and got stung (long story).
