What to offer under the asking price to start negotion?
20% less? 10% less?
I know people say 'what you think it's worth' but wouldnt you offer less than that anyway hoping to settle in the middle (hopefully at your ideal price)
Thanks for any advice.What is it worth TO YOU? 10% under at least. I'd be starting to feel a little cheeky at 20% unless I had some reason to feel that the property was overpriced to begin with. But then, lots of cheap offers will sooner or later get you a cheap property. You should have a feel for what to offer, though, from talking to the agent, looking at the property and your knowledge of the local market. Importantly, be prepared to walk away if they won't come to the party at a price you are happy with. Also, don't act too keen. Remember, you're an investor who looks at lots of properties, wether or not this one comes off for you doesn't really matter to you.
that makes sense. thank you!
If you check out the property area reports on domain .com, they will tell you what the average discounting amount is that houses actually sell for. This can be a helpful guide. Days on market also helps to find "conditioned" buyers.
Personally, I'd offer less than what I was actually prepared to pay, so that you can eventually negotiate to meet in the middle.
It bruises their ego a little less, and can look like you have really stretched yourself to come to a middle ground.
At the end of the day as Shales suggests, an investment needs to be bought at a value based on your sums, NOT their asking price.
Only pay more than this if you are emotionally attached to a place you actually want to live in. like a lifestyle home for you and your family.
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