What percentage less is an acceptable offer on a property?
Dec 28th 2009, 1:01 am
#1
BE Enthusiast
Thread Starter
Joined: Jan 2008
Location: Gold Coast, Australia
Posts: 363
What percentage less is an acceptable offer on a property?
We are living on the Gold Coast and are hoping to buy a property soon. Obviously I know if I really want the property to offer the asking price/know to think about how long it has been on the market etc. but what is an acceptable starting point for offers? What are people's experiences of being knocked back/accepted with offers they have made on properties they have bought?
Thanks.
Thanks.
Dec 28th 2009, 9:46 am
#2
Forum Regular
Joined: Feb 2006
Posts: 159
Re: What percentage less is an acceptable offer on a property?
Hi,
I think this is relative to type of property, not so much a straight forward discount. I'd guess in Queensland (especially coastal area) a apartment / unit will be discountable, but by what %age is down to your negotiating skills. A good sized block with some established bricks and mortar, maybe not.
I don't think it's a straight forward as 'how much can I get it down by'. In fact, if you aren't prepared to pay the asking price then you're probably over stretching in the first place. What you sell it for is what it's worth, not what you buy it for.
I think this is relative to type of property, not so much a straight forward discount. I'd guess in Queensland (especially coastal area) a apartment / unit will be discountable, but by what %age is down to your negotiating skills. A good sized block with some established bricks and mortar, maybe not.
I don't think it's a straight forward as 'how much can I get it down by'. In fact, if you aren't prepared to pay the asking price then you're probably over stretching in the first place. What you sell it for is what it's worth, not what you buy it for.
Dec 28th 2009, 9:53 am
#3
Harrip
Joined: Nov 2004
Posts: 495
Re: What percentage less is an acceptable offer on a property?
If you stick your post code in here you can see the % discounting that is occurring in a given suburb.
http://www.domain.com.au/public/apm/....aspx?mode=buy
http://www.domain.com.au/public/apm/....aspx?mode=buy
Dec 28th 2009, 10:23 am
#4
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: What percentage less is an acceptable offer on a property?
We are living on the Gold Coast and are hoping to buy a property soon. Obviously I know if I really want the property to offer the asking price/know to think about how long it has been on the market etc. but what is an acceptable starting point for offers? What are people's experiences of being knocked back/accepted with offers they have made on properties they have bought?
Thanks.
Thanks.
the negotiation has to start somewhere
when we bought our place they settled for 140k less than advertised
Dec 28th 2009, 1:13 pm
#5
Forum Regular
Joined: Oct 2009
Posts: 70
Re: What percentage less is an acceptable offer on a property?
Its only worth what someone is prepared to pay,so offer what you feel is right.If there is lots to be done on the property,ie new bathrooms,kitchen,painting etc then offer an amount less that you feel you would need to spend. If it is falling down or ridiculously overpriced,offer $140k less than advertised!!
Dec 28th 2009, 2:21 pm
#6
Lost in BE Cyberspace
Joined: Jan 2009
Location: Brisbane
Posts: 20,821
Re: What percentage less is an acceptable offer on a property?
Its only worth what someone is prepared to pay,so offer what you feel is right.If there is lots to be done on the property,ie new bathrooms,kitchen,painting etc then offer an amount less that you feel you would need to spend. If it is falling down or ridiculously overpriced,offer $140k less than advertised!!
Dec 28th 2009, 7:40 pm
#7
Decreased member
Joined: Oct 2006
Location: Pere Lachaise Cemetary, plot 666
Posts: 1,381
Re: What percentage less is an acceptable offer on a property?
We bought a property on the GC in June 06 - being completely new to the area and not knowing whether the asking price was reasonable or not we invested $500 in a professional valuer who inspected the house and gave a full report of the values in the area, trends and his valuation of the house. Armed with this document we were able to offer accordingly and settled $45,000 lower than the asking price. Money well spent.
Dec 28th 2009, 8:06 pm
#8
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: What percentage less is an acceptable offer on a property?
If you stick your post code in here you can see the % discounting that is occurring in a given suburb.
http://www.domain.com.au/public/apm/....aspx?mode=buy
http://www.domain.com.au/public/apm/....aspx?mode=buy
Dec 28th 2009, 8:12 pm
#9
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: What percentage less is an acceptable offer on a property?
We bought a property on the GC in June 06 - being completely new to the area and not knowing whether the asking price was reasonable or not we invested $500 in a professional valuer who inspected the house and gave a full report of the values in the area, trends and his valuation of the house. Armed with this document we were able to offer accordingly and settled $45,000 lower than the asking price. Money well spent.
we had a little help with ours as we knew the real estate agent, his advice being that the people selling needed to move quickly as they had already invested in property in sydney hence our low offer being accepted
Dec 28th 2009, 10:13 pm
#10
Worongary
Joined: Sep 2005
Location: GC hinterland
Posts: 10,288
Re: What percentage less is an acceptable offer on a property?
so going back to the OP`s question offer a lot less than asking
the link posted by harrip shows an average of 10% below asking for our area again this is an average so some will settle at near asking and some for considerably less you wont know till you make an offer and theres nothing worse than making an offer only to have it accepted straight away it makes you wonder just how much youve overpaid
the link posted by harrip shows an average of 10% below asking for our area again this is an average so some will settle at near asking and some for considerably less you wont know till you make an offer and theres nothing worse than making an offer only to have it accepted straight away it makes you wonder just how much youve overpaid
Dec 29th 2009, 6:57 am
#11
Lost in BE Cyberspace
Joined: Jan 2009
Location: Brisbane
Posts: 20,821
Re: What percentage less is an acceptable offer on a property?
so going back to the OP`s question offer a lot less than asking
the link posted by harrip shows an average of 10% below asking for our area again this is an average so some will settle at near asking and some for considerably less you wont know till you make an offer and theres nothing worse than making an offer only to have it accepted straight away it makes you wonder just how much youve overpaid
the link posted by harrip shows an average of 10% below asking for our area again this is an average so some will settle at near asking and some for considerably less you wont know till you make an offer and theres nothing worse than making an offer only to have it accepted straight away it makes you wonder just how much youve overpaid
We certainly don't wanna fall for that one.
