Real estate offer evaluation

I do not understand this way of thinking – but this does not only apply to real estate, it already starts with eBay Classifieds. If I can afford (1) the plot of land with the house and it suits ME (2) in size and layout, (3) I like the location and (4) I find the price reasonable, why would I want to know if others might possibly offer less for it? In the course of our house sale, we had exactly one (!) interested party who thought that way, and – guess what?! – he was allowed to buy it in the end.

Nowadays, you simply cannot afford to gamble too high, because you would probably regret the missed opportunity for years. Either way, I assume that you will not be able to build the described house on the described plot with the described quality and equipment today for this money.

I don't understand this way of thinking - but this is not only true for real estate, it already starts with eBay Classifieds. If I (1) can afford the plot including the house and it (2) suits me in size and layout, (3) I like the location and (4) I find the price reasonable, then why would I want to know if others might possibly offer less for it? During the sale of our house, we had exactly one (!) interested party who thought that way, and - guess what?! - he was then allowed to buy it.

Nowadays, you simply can't afford to bluff too high, because you would probably regret the missed opportunity for years. Either way, I assume that the described house on the described plot in the described quality and equipment cannot be built today for this money.

That's how it is. We had to learn that first too. But now we are buying our village house, for which 1-4 apply exactly to us. Since the thing is practically new (built in 2012), we also said that we couldn't build the same house for less, so we offered the asking price and were awarded the contract.

I don’t understand this way of thinking – but it doesn’t just apply to real estate, it already starts with eBay Classifieds. If I (1) can afford the plot including the house and it (2) suits me in terms of size and layout, (3) I like the location, and (4) I find the price reasonable, why would I then want to know if others might possibly offer less for it? During our house sale, we had exactly one (!) interested party who thought that way, and – guess what?! – he was allowed to buy it.

Nowadays, you simply can’t afford to bluff too high, because you would probably regret the missed opportunity for years. One way or another, I assume that you wouldn’t be able to build the described house on the described plot with the described quality and equipment for this money today.

You hit the nail on the head. I (4) don’t find the price reasonable, so I try to find out if my assessment is correct and try to make a comparison. I also don’t find the (2) layout ideal for me – so I would have to change something here and have to factor that in for myself.

I can easily afford to bluff high, even nowadays: I have nothing to endure, live reasonably, would like to move, but don’t have to. I have the reserved plot in the background and am completely relaxed. If someone comes along today and strikes for 600k, then my assessment was obviously wrong – happens. After all, buying a house is not a matter of life and death. I can’t understand the way of thinking how someone would come to think they would regret something like that for years…

I would understand your way of thinking if I intended to grow old in this house – then it’s totally irrelevant and it’s really only about whether it’s okay for me or not. But I think it’s likely that I will build another house – according to my own ideas. Ergo, I already have to pay attention to the “purchase price” of this house.

And the described house, in the described quality, on the described plot, can very likely be newly built for this price – but that’s not what it’s about at all.

You hit the nail on the head. I find the price (4) not reasonable, so I try to find out if my assessment is correct and try to make a comparison.

That already makes the result clear. Don't buy. Keep searching and getting annoyed that there are no "affordable" houses.

I also don’t find the (2) layout ideal for me - so I would have to change something here and have to factor that in for myself.

That’s your problem. The house is not to blame for that. And again, you should then make the decision not to buy.

I can easily afford to take a risk, even nowadays: I have nothing to endure, live sensibly, would like to move, but don’t have to.

You can afford to gamble. But you have an extremely bad losing hand - sensible houses in reasonable locations are extremely sought after. People don’t gamble there, they either buy or don’t.

And the described house, in the described quality, on the described plot, can very likely be newly built for this price.

Let’s take €170k for the land, as you wrote yourself. Then add 162 sqm of living space. That amounts to around €2,200-2,400 per sqm in the quality mentioned = €356k-389k. Add construction incidental costs of €50k and outdoor facilities of €35k. For a new build, you end up at €611k to €644k. And that without the stress of the construction phase, possible cost increases, construction defects, etc. The price for the house is completely okay.

You see, I’m telling you, you can build the house new for that price (600k + 50 land transfer tax and notary). Nice that we agree on that.

Honestly: What motivates you to write texts like that?

So prices asked by private sellers are always justified? It’s in the nature of things that the seller wants to get as much money as possible and I want to pay as little as possible. Both are completely okay – somewhere you meet in the middle, or not. By the way, there are other interested parties here who have already offered more than 640,000 – but it would also be about sympathy… *yawn*… I must be very likeable…

Your last sentence helps me – the price is completely okay! That’s what I’m here for, that’s the opinion I asked for. I openly said I have no idea and asked for an assessment. You said you don’t understand “such ways of thinking”, I tried to explain why I think this way. Nothing more happened.

And of course the house isn’t to blame for the layout – the seller isn’t responsible that it doesn’t suit ME – but that’s not something money can’t fix, so it’s completely legitimate to consider what these renovations cost and whether it’s all worth it to me. I’m not using this as a negotiation argument and haven’t asked whether the price is justified if I still renovate for 50k… that is actually MY problem.

I also don’t have an extremely bad losing hand and think that’s a pretty stupid remark. The listed price was 635,000 by the way – if I thought like you, I would have sunk 35k already… Sometimes poker does help after all. And of course someone could come today who actually pays 630k – then I’m out and that’s okay too. The risk always exists in negotiations.

You see, that's what I’m saying, that the house can be newly built for that price (600k + 50 land transfer and notary). Nice that we agree on that.

??? I say, you build for an average of T€ 630 (+ notary etc.) and you for T€ 600. No, you won’t get the same house newly built for T€ 600.

Honestly: What drives you to such texts?

Your post ;)

Asking prices from private sellers are therefore always justified? It is in the nature of things that the seller wants as much money as possible and I want to pay as little as possible. Both are completely okay – somewhere you meet in the middle, or not.

Justified if they are paid. And that fits very well here. If you don’t like the price, that’s okay. But big price negotiations are currently not happening. At most in the direction of who pays even more!

You said you don’t understand "such ways of thinking", I tried to explain why I think that way. Nothing more happened.

Sorry, you’re confusing me (said ). I do understand the way of thinking, but I tell you it doesn’t help much.

I also don’t have an extremely bad losing card in my hand and think that’s a pretty stupid remark.

I have been active in the real estate and real estate financing industry for over 20 years – as a financier, investor, landlord, and owner-user. Hence my assessment. You have little experience and ask. Then you get answers from those who have a lot of experience.