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We have identified a property that we like a lot and can imagine buying. Now I'm not sure how much reduction on the asking price it is customary or acceptable to ask for. Having lived in different countries and seen broad differences in the margin for haggling, I don't want to offend anybody by making a preposterously low offer, and I don't want to end up being the milk cow who pays too much. To sum things up. The seller is asking for 135K, which is a shade less than other properties in the same urbanization are selling for. But the overall condition is also poorer, so I guess that is already taken into account. However, I have it from an unverified rumour that the house has been on the market for several years and the price was originally 160K. How much should I offer? Would it be ridiculous to try and knock it down by another 10 or 20K or has the limit already been reached? Any insight is appreciated.
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It’s a matter entirely for you.
If you offer too little but are willing to increase the offer then I cannot imagine, at this time when practically nothing is selling at almost any price, that the seller will not be happy to negotiate with you.
When I last sold, ten years ago, and with the sale before that, I set the price I wanted and made it clear it was not negotiable. But I know that is unusual.
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Why not try 122,000, if you think the property is worth it? I don't think that would offend anyone. They may then try and push it up a bit and you might have to go to 125,000...
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The seller is asking for 135K, which is a shade less than other properties in the same urbanization are selling for.
Selling !!!! or asking. ????
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Exactly John! Just because other properties are ASKING more than the one you're going for, don't assume they are GETTING that much!
I'd offer a good chunk less. Start at 105.000 and have a ceiling (say 125.000) above which you will not go. I made a silly offer for my house, expecting to up quite a lot, and the owner just "squeezed" another 5.000 out of me! So I got a third knocked off.
If it's an English seller, which I'm guessing it is as you mentioned an urbanisation, they are often trying to shift a second home that has become a millstone around their necks. If they haven't had other offers in the years it's been on the market, they should at least have a sensible negotiation with you, till you end up with a price that both parties are content with.
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Blog about settling into a village house in the Axarquía. http://www.eyeonspain.com/blogs/tamara.aspx
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I meant that's what they are asking. Sorry for the confusion. I don't know of any reliable way to know what they're selling for, if indeed they're selling at all. I don't actually know who the seller is as so far I've only dealt with the agent.
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I don't know of any reliable way to know what they're selling for, if indeed they're selling at all.
Don't be surprised if they are not selling at all.
Despite what one 'lucky' estate agent says here, the rest of the reports on the Spanish property market say prices and sales continue to fall
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Another 10 or 20K would certainly not be offensive. I would go and offer without any hesitation 25% less assuming the house is worth the 135,000. However I would have the house valued first, you may get a surprise., it may not even be valued at 100,000 euros. If you like the house it is a question of finding that minimum price. having an official valuation from the bank will help you in the negotiation. I would offer 100,000 euros pending valuation and see what they say. You can always increase the offer if necessary, as much as they may feel slightly offended, buyers are far and few between and if the valuation comes out higher than the 100K you have offered, raising your offer slightly won't hurt so much. Valuations tend to be very harsh at the moment so they work in favour of the buyer so it will almost certainly be below the asking price. 100,000 euros can go a very long way with property in Spain at the moment so make sure you have shopped around enough.
good luck
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A donde el corazón se inclina, el pie camina.
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I would try to find out what it was worth at the peak and then offer half of that assuming that would be less than the asking price. I think a 50% reduction is pretty standard if you really want to sell.
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We have just moved in the UK and our rule for making offers was that you can start low and increase, but you can't start high and decrease. I think no matter what, people will be offended as I don't think a lot of people have accepted the reality of the situation yet. A property is only worth what someone is willing to pay for it.
Mark
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Thanks for all your replies. You have given me more confidence in making a bold offer. I have checked with the cadastre and the seller has exaggerated the area of the land by more than ten percent, and the property is also ten years older than we were told so I am planning to use those as arguments in asking for my reduction.
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Considering that the house has been on the market for several years and still for sale you have a good hand here.
The house was probably the correct price in the first place, but because things started to get tough buyers got scared and stopped buying. Most likely nothing to do with to high a starting price or in the wrong place, just that everyone read the papers, watched the news, and thought best to save my money for a while longer, which of course as we all know only makes a bad situation worse.
135€ and not sold, reduced from 160€ means nothing to you, and if it's a weight around the sellers neck any offer should be something, offer 100€...whats the worse that can happen? they wont sell to you... when you make this offer make it clear....make it 100% clear, you will buy, pay the deposit, wont drop out, can do the sale within weeks....try it.
Have your top price you will pay in your mind and dont go over it unless you really want this house, all you lose is a bit of money if you do pay more...but you get what you want.
If the seller coughs on 100€, before you go higher on your offer ask them.."Do you want to sell your housel? or do you want to have a house to sell"
Care not one jot if they are in big money troubles and need the house money to live another day...think they wont do this to you should the tables be turned around.
Good luck.
If you love this house that much, buy it, if not, move on.
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I agree with the last poster - it is no good worrying about a seller's situation is - the market would become even more stuck (if that were possible). But at 135 - I would go in well below the 100 - say 80, and just see what happens. Not as though they are queuing up I presume???
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As an estate agent I find that most of our clients are offering 25% below the asking price.
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Hi Cazzy. If people are offering 25% below the asking price, what generally happens then? i.e. how does the negotiation tend to progress and what percentage reduction is usually agreed upon in the end? Also, does any gazundering occur?
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My account of moving to Spain. http://www.eyeonspain.com/blogs/olives.aspx"><img
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If a seller anticipates that they will get offers of a certain percentage below the asking price, then I would be surprised if the seller just did not add that percentage to the asking price. (thats what Real Estate agents often do)
Example: I want to sell for 100,000 so I set my asking price at 134,000 , which minus 25'% = 100,000
It makes more sense I think to ask for what one wants and make it clear that is the set price. So in the above example, I want 100,000, no negotiating.
If the property does not sell the owner would need to consider reducing the asking price.
This message was last edited by johnzx on 01/01/2013.
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In a normal market that would be true johnzx - but the Spanish market at the moment is abnormal and not reacting in normal ways. How much you can get off a property depends entirely on how much the buyer wants or needs to sell. So all the old 'rules' are out of the window, and the price someone gets for the house down the road has no bearing on how much another identical one will go for. The only way to be sure you are negotiating a good deal is by making an offer and seeing the reaction. Most people who have posted agree with this approach. Agents are generally still over valuing (remember they get a percentage of sale price), and I was very surprised when a good and well established agent told me what he would ask for my property. It was well over what I could possible attain, though admittedly it was just a casual conversation when he visited my house so not a proper valuation. (my house is not for sale).
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Hi! We're just in the process of buying in Spain and the property was on at 160000.00 Euro's and has been on the best part of a year. We'd been to see it in September but weren't then in a position to buy but met one of the owners and my husband overheard him say to the agent that they were getting desperate as they needed to get back to the Uk (Sick parent). Once we had sold in the Uk we went back to have another look and check a few things out and then said to the agent that we would offer. He went on about what a lovely house and what good value it was etc... but we put in an offer of 130000.00 We fully expected the agent to come straight back and say they wanted alot more but infact he came back and said if you can go to 132500.00 they will agree a deal! So we did! The house is a 3 bed, 2 bath with Olive grove and orchard plus gardens and terraces. It also comes fully furnished. Be bold, you can always go up but you can't come down unless you have a survey and its bad! In which case you'd probably want to run anyhow. Let us know how you get on! Good luck
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I was going to say how lucky that the seller's parent was ill (sarcastically), but then remembered that the first house I bought was cheap because it was a probate case, so I suppose it's the way of the world to cash in on other people's misery and desperation.
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My account of moving to Spain. http://www.eyeonspain.com/blogs/olives.aspx"><img
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