jimbloby7

If a house is marked up as $179000 is it customary to negotiate a price around the figure, or, is that the lowest price. I would normally start an offer of say 5% below the asking ?

dbd33

Depends where and when. I've always offered 10-5% below asking but in some markets it would be prudent to offer above straight away. How long has the house been up for sale?

iaink

Depends on the house and the area. Thats what the advice of a realtor is for.


Generally its safe to see it as an opening point for negotiations and put in an offer below the asking price, but it will depend if you are buying in a hot market or not.

jimbloby7

Its a Business/home in need of some updating and modernizing.

iaink

What does your realtor say? They are the ones who know the market after all. Its not costing you anything to use one, so you might as well.

If you are in Calgary, its a hot market and houses sell fast for list price or above. If its some sleepy backwater town, then below list is common. Dont forget, further adjustments are often made after the house inspection stage, long after the "price" is agreed, to compensate for work that needs to be done that was revealed by the inspection. Its all a game of course.

Souvenir

What the other two said.

Property in Canada can be sold very, very quickly. Your agent will know how long it's been on the market. If it's been sold before, within the last few years, the agent will also know how much for. Your agent will also know what similar properties have come up and what they are selling for.

If the place you are looking at has been on the market for a while, you have room to negotiate. If it's new to market, you like it and can afford it, don't dither. The house we live in now came onto the market a few hours before we visited it. It was a no-brainer to us that the place was priced well, for us. We stuck in an on-the-spot offer 5% below for the sake of appearances, fully expecting to be dragged back to full asking-price. The seller met us in the middle. We exchanged contracts about 36 hours after first setting eyes on the place.

ann m

If that house were in Calgary - at $179,000?! - I'd buy it - with no quibbles at all

Steve_P

A business/home in need of some updating and modernizing at $179,000 in Calgary you would probably run away from it.

It most likely would be good for the lot only. Tear down and start over.

gloveman

We made an offer but it got turned down and we paid $8000 under the asking price in the end. But we know we had given it a go and were happy knowing that we got it for the least we could. Give it a go, they can only say no.

jimbloby7

Ontario,Archipelago. We visited this area and loved it. Besides i am a builder, nothing ventured nothing gained.

Steve_P

Then in that case go for it.

MB-Realtor

Hopefully you are working with a Realtor acting for you as your Buyers agent and not dealing direct with the sellers agent. As a business is also involved you should have both a lawyer and an accountant on your team. If you are buying in a small community make sure there are no conflict of interest problems with any of them. Buying a business is fraught with problems, and "Buyer Beware" is enshrined in law in many provinces, this is doubly so with a business purchase as you are assumed by the law to know what you are doing.

Before your agents writes up your offer have him/her contact the sellers agent and ask if you are in competition, and if you are how many competing offers are expected.

If there are no competing offers go ahead and put in any lower offer you think appropriate, also put in as many conditions favoring you as possible. Give the seller as short a period as possible to reply (a few hours), the seller can accept, counter or reject your offer.

If you are in competition, then all bets are off. If you really really really want it then all you can do is offer the maximum you can afford with the minimum of conditions . We sold a house last week, it was fairly priced at $190,000, we had 37 offers, and it sold for $42,000 above list, but the Winnipeg's housing market is a bit crazy at the moment.

Biiiiink

I saw your sign on Portage yesterday - very nice

MB-Realtor

I getting known as "The Realtor with the Big Head"

My kids thinks its hilarious and take the micky something dreadful.

Ahh Well, needs must to earn a crust.