Asking price compared to opening offer

Hi. Need peoples options on this as i’m blue in the face trying to convence someone not to feel bad about making a low offering price. I know the market is falling but they are determined to buy in this area. Have told them to offer 50 grand under asking price.As they have already missed out on a house in this area not so long ago. They had a bad experiance with that EA ,gave them the same advice that time but the EA told them it was to low and would not put it to buyer.Only found out this recently makes my blood boil well any way that house went for the asking price which was to much for them. They said the EA the last time made them feel like fools with there offer of 50 grand under. I have told tell them the markets have changed its a buyers market now and that EA is a idiot.
This time told them i will stay with them when they are making the offer and since its the same EA I will do the talking.Well they did the same thing offered 50 grand under and the EA had the balls to say the same thing ,did not know to laugh or punch him.Told him there offer stands for a week and got my friends to put it in writing , my friends of course can offer more for this house but a low starting base is better for them.
This guy is unbeliveable , Problem is this offer will be refused by the sellers if it put to them but he would say that anyway.My friends do not want to deal with this guy.
I gave them another option as they really want this house, call up to the house tell them the like the house and want to buy but without that EA.
THey get what the want and the EA gets shafted now would that be a fair thing to do or it that a bit O.T.T

What is the asking price for the property?

If it was €200,000 and you are bidding €50,000 under the asking, then the estate agent would rightfully not entertain your offer.

If it was €500,000 and you are bidding €50,000 under the asking, then the estate agent is a fool for not relaying details of your offer.

The asking price is 350,000 the couple are not ftbs, Similar house sold for 350,000 6 months ago in this area. but a lot has changed in 6 months

Bypass the EA next time and put the offer through the letterbox. At worst you’ll get the same reply of a no. Make sure to also mention that they were not happy dealing with the EA.

Has your friend got a house to sell? Do they have mortgage approval? Anything they have that can be used to close a sale quickly is a good bargaining chip to have.

Agreed.

We had a little debate a while back about whether a house is worth what someone is willing to pay, or what someone is willing to accept.

It’s not 100% either. Just because you want to offer 50K less than the asking price doesn’t mean that the vendor or the EA is under any obligation to sell it to you, or even entertain your offer. If they say it’s too low then it’s too low.

Perhaps the seller is on the fence about selling. If they get close to asking price they’ll sell, otherwise they’ll keep it. You have no way of knowing their financial situation.

When prices were increasing sellers saw the asking price as a starting point and expected to get more. Buyers capitulated. If a given buyer refused to budge another buyer would come along.

On the way down buyers can try the same thing. The problem for buyers is that if you want a particular house then that’s the hosue you want, anything else will be second best. For the seller any buyer will do.

You said that the original hosue that you lowballed went for the asking price. Doesn’t that tell you something? You’re dealing with an EA that just earned his client 50K more than they would have gotten from you.

If I was the EA and you lowballed me by 50K again after I got the asking price the last time, I’d tell you to go away, I’ll take my chances on finding another buyer, stop wasting my time.

Yes in a falling market you should expect to offer less than the asking, but you have no right to be upset if the offer isn’t accepted. If the house ends up not selling then you have the right to sit back smugly and smile at their loss. But if they sell for the asking price you should rethink your bargaining.

And remember this is not even you that’s buying the house. Are you letting your bearish attitude impact on a friends ability to buy a home?

-Rd

But if its not for sale at all then, is it priceless? :wink:

A house is only worth what a buyer is willing to pay for it, full-stop. You can’t ascertain the exact value of anything unless it actually sells.

If the seller wants 500k but an identical house has just sold for 300k, is house A worth 500k or 300k at a best guess?

Having said that, nobody is obliged to accept or even entertain a particular offer for their house, but screw the EA and go in there with a brass neck. He can act as disgusted as he likes, but its just business and you’re looking after your own by trying to get the house at as low a price as possible.

Of course. I get people offering to buy one of my dogs. They seem to think that because I have two they must be for sale. :question: But it wouldn’t matter if I was offered ten million, they aren’t for sale. I’m sure plenty of people feel that way about their homes, so their homes are indeed priceless.

There seems to be a sentiment that the EA has somehow done something wrong here. I don’t understand it.

If a passage similar to the following was written by a seller holding out for more and talking about a buyer who wasn’t willing to move, it would be lambasted on the Pin.

I don’t want to be mean spirited here, but there’s being a bear, and there’s being cocky. Just because house prices have started to drop doesn’t mean you have an entitlement to buy any house for whatever price you feel like.

The EA in this case has done nothing wrong as far as I can see, based on the details given. In fact if he’s managing to get asking price then he’s a damn good EA.

-Rd

pay the price that the market supports.

TBH daltonr, I would be of the opinion that if an offer has been made for the house, the estate agent is duty bound to pass it onto the vendor regardless of whether he feels it will be entertained or not. It is not for the estate agent to decide it won’t be entertained.

And yes, people are entitled to pay what they want for a house - the option is not to buy the house and it exists regardless.

Eh , yes it does…if it’s a buyer’s market :slight_smile:

Buyers always dictate especially when they exercise their right to walk away. If a buyer really wants the property as in this case , should just suck it up and pay the asking price to ensure the sale and avoid another disappointment.

Of course that’s not to say that they won’t be suffering the disappointment of their new property being worth €50k less this time next year :laughing:

No it doesn’t.

I underlined the key term in his argument.

Surely it’s the seller’s “Entitlement” to ask for whatever price they feel like but conversely it’s the buyer’s “Entitlement” to buy for whatever price they feel like. It’s called freedom 8)

If the EA has instructions from the vendor that they won’t entertain anything less than 10K below asking, then I would say he’s doing his job buy telling a buyer that 50K below asking is too low and won’t be entertained.

We do’nt have enough details to know what the vendor agreed with the EA.

The original poster called the EA an idiot because he didn’t entertain 50K below asking. This IDIOT EA then managed to achieve FULL ASKING PRICE.

No. It’s the buyers entitlement to OFFER whatever they want, they have no entitlement to BUY for whatever they want. And they certainly don’t have any grounds for complaint if their offer is ignored.

Our original poster was perfectly entitled to offer 50K below asking. he just isn’t entitled to call the EA an idiot for not accepting the offer.

Tell me you’re being Ironic!!!

I’ve made lowball offers, in a buyers market. But I’ve never for one second felt I was entitled to buy at that price. If the property doesn’t sell and eventually comes down to the price I offered then I might say the vendor was an idiot. But if it sells for the price he was asking then I’m the idiot.

-Rd

We went thru something similar, found a house we loved, lowballed the offer, unfortch for us, there was no phantom buyer there was a real buyer who didn’t bat an eye at asking so we were out of the game. The EA was a real pain to deal with but the house went sale agreed so fair play to them for getting the seller more than what we offered. I still think the EA was a nuisance but perhaps that’s because I am ahead of my time, lol. It’s a buyer’s market but only just, the tide is just coming in and you can by left stranded on shore longer than you anticipate thinking it is coming in sooner than it is.

hows that for a metaphor

:wink:

Lowballs are all well and good and if it works then happy days 8) But if a buyer is seriously interested in a particular property (I really don’t understand such a mindset btw) , then they really have no option other than pay the asking price and close the deal before someone else gets in 1st.

The strenght of any buyer is to be in a position to just walk away. Anyone in the retail/commercial sector will tell you this. It’s very hard to deal with a buyer who basically is under no pressure to close the deal whereas if the buyer is leveraged ( eg.nagging partner to buy this dream house ) and the seller knows this , well it’s like stealing candy from a baby :smiley:

Will give a little more detail. The house my friends missed out on had a lot of interest when it went on the market it sold within a month, the EA had about 4/5 interested buyers and a lot of bidding on it. Know this because can check on there site the latest offers. This house has been on the market a month and my friends are the only people to view the place and there is no other bidders.A house is only worth what someone is willing to pay. My friends should be bearish about there offering price this is a business transaction that a emotional thing.You should be out to get the best deal for yourself not the seller as this is a buyers market.House prices are overvalued as it is. How many people sold there houses and made tons of money out of them-a lot and if you where to ask them would they buy there old homes for that money they would laugh and say no way. Go into buy a home with the frame of mind that this is a business deal with room to be flexable the lower your asking price the more money you can save when ye get around to negotiating. Do not feel bad for the sellers ,the EA its there to get the highest price for the sellers its your job -No its your Right, to get the best deal for you and your family

In replies to the mails about 50 grand under being to low for the EA to consider. It was a starting point nothing more nothing less my friends knew this offer would be rejected but the EA did not even ask them to up the offer the first time in dealing with them he just dismissed them.
THis time round he has not asked them either which in my mind is bad practise . Like any thing the offer and the selling price can be reach with played out discussions but the EA is missing the point he is dismissing them because they all looking for the best deal for them if he was any good he would had came back to them tell them the offer was refused and ask them to make a higher offer. commom sense to me

You know what, that’s what I thought with our lowball offer but it is not working that way yet. Maybe next year, but not now. **The market isn’t there yet. **There are still people paying at or near asking (within a few thousand) and as long as that happens, you aren’t going to get EAs bending over backwards for lowballers, trying to cajole them into a higher bid. They are going to spend their time, rightly so, chasing buyers who are already in their price range.

You or your friend are going to have to chase the EA and the end result will be you will have to up your offer or walk away. If the house is still on the market a few months from now you can try again. If not, the EA was likely proved right and held out for a realistic (in their eyes) buyer.

Even the most recent Daft report bears this out, people are still paying near asking. As long as that is the case, unless you touch lucky, lowballers won’t get a look in.

I totally hated that the EA of the house we loved wouldn’t play with my offer, but that’s the brakes, they were right (for the seller) to do that, as they got a buyer closer to asking than I was prepared to go. You might think there’s no buyers for your property of interest, but if the EA and seller are prepared to give it time, there just may be. And that’s 50G for a few weeks vs selling out to you now. So if the EA has any cop on, that’s what they’d advise the seller to do, not to panic-sell, not just yet.

Oh, and the house we wanted, was on the market for almost a year - you’d think you were in a sweet position to lowball it. For whatever reason, another buyer showed up on the scene at the same time as us. Bad for us, great for the seller.

Find a back up house that’s closer to your price range is my advice.