House purchase - price negotiable... please opinions

  • Erstellt am 2014-10-19 00:53:08

DG

2014-10-20 11:59:02
  • #1
The question of the bidding price is always a matter of personal negotiation skills and the overall situation. In our search for a property, we tried to negotiate and offered about €10K less in writing than the asking price – then we quickly received information that two other interested parties had offered more. We then increased our offer to the requested purchase price but still did not receive the contract; this all happened very quickly, so presumably more was offered than originally asked.

However, it is important to set a limit for yourself at which you are willing to purchase the property, and it can well be that a property represents more value (!) for other buyers and therefore justifies a higher purchase price – at some point, you have to walk away, otherwise you are just fooling yourself.

For the house of the original poster, you can basically offer anything; it ultimately depends on what the house is actually worth and how quickly/reliably you want to have a decision.

If the house and purchase price fit, you can also act quickly, offer €300K, and wait to see what happens.

If you find the property okay but could possibly find a comparable other property without great difficulty, you can simply offer €250K and wait to see what happens. This is cheeky (assuming an appropriate factual/market value of the building of €300K) and can lead to the buyer no longer being taken seriously (communication with the agent is important! You should "sell" this as your initial offer and let it be known that you can significantly increase to, for example, €300K, but do not necessarily want to!) – but it can also lead to an agreement well below the asking price.

Very important: no matter what the agent says, always submit written offers, even if the agent says/claims that he would not accept written offers below price X. A number with a signature underneath signals to the seller that you mean business.

Best regards
Dirk Grafe
 

schnie

2014-10-20 15:20:40
  • #2
Have now also decided to propose 300K... outrageous or not.
If I, for example, only propose -10,000 and he agrees immediately, there probably could have been more.

Now we first want to send an appraiser over.
If he finds out that the value is lower - fine and good. Then you have a basis for argument.

But if it turns out that the house is worth more?
Sure, we pay the appraiser and don't have to disclose it, but then the seller will immediately know what’s up...
 

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