# Making an offer on a house



## Stellen (Mar 19, 2010)

We are English and looking to make an offer on a house in Somerset West. What is a reasonable offer? 5%, 10%, 15% less than advertised price? Thanks.


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## vegasboy (Apr 28, 2010)

Stellen said:


> We are English and looking to make an offer on a house in Somerset West. What is a reasonable offer? 5%, 10%, 15% less than advertised price? Thanks.


 Stellen, the answer is not so simplistic. First of all, have you seen the property and are you happy that it is in the right area etc?

If so, I suggest you phone a few estate agents in the area who will also have the property on their books and ask them what they would offer. As times are tough, it makes sense to start your offer as low as possible. Believe me, there won't be people lining up behind you to grab the property.

If you are a cash buyer, I’d say start with at least 20% lower. Most sellers are unrealistic with asking prices.

As I am also into investment property (I am not an estate agent but I do own real estate in Somerset West and Strand) I have access to the Deeds Office where I can view properties sold in short proximity to where you plan to buy (I'll need the address). I'm not sure if you can send me a private message through this Forum, but if I can be of any help, let me know.


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## Daxk (Jan 20, 2008)

The rule of thumb is you make a ridiculous offer(-25%) but let the estate Agent (who theoretically works for the seller)know that you are open to Counter Offers.

if a Counter offer arrives from the seller you then know the ballpark that he is willing to deal at.
you can then do a final offer or walk away.
I've just been in SA for a month and its a cash buyers market right now, the SA banks are NOT giving mortgages without a DNA and sperm test.


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## TheEndGame (Mar 25, 2008)

Tell the brokers of area that you have a flat in so and so location, what price you can get for that... by that you will get idea of what selling price is in that area.. accordingly you can set your buying price and start negoatiating...


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## marieannetta (Mar 22, 2010)

DAXK is right. Very tough to get a bond and lots of houses on the market. However, unless the sale is urgent, you'll probably won't get the deal. We were offered a unrealistically low price for our house so we just sat with it for another two years.

If the sale is urgent - foreclosure or anything like that, and you have cash, you are in a very good position to negotiate.

The outstanding bond is another point. If it's far higher than what you're offering, the bank would rather foreclose on the current owner and sell it on auction. If the auction doesn't hit the reserve price the bank will rent it, then wait for the market to firm up a bit - and banks can wait a looong time.

My advice is, if you like it, make a reasonable offer, get a fair deal and live in a home you love


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## Stellen (Mar 19, 2010)

Many thanks for the replies and advice. 

We have only seen properties on the internet but will be visiting in November with a view to buying something. I know an offer is binding but is there a limit for the seller to accept or reject an offer or is the time frame something we could stiplulate in our offer? What if we find two properties we really like? Would we have to put in an offer on one, then wait before we put in an offer on the other? 

Our other decision is whether we choose to live in a security estate or 'in the open'.


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## vegasboy (Apr 28, 2010)

Stellen said:


> Many thanks for the replies and advice.
> 
> We have only seen properties on the internet but will be visiting in November with a view to buying something. I know an offer is binding but is there a limit for the seller to accept or reject an offer or is the time frame something we could stiplulate in our offer? What if we find two properties we really like? Would we have to put in an offer on one, then wait before we put in an offer on the other?
> 
> Our other decision is whether we choose to live in a security estate or 'in the open'.


 The limit to accept the offer is set by the buyer. Generally, you will only give the seller circa 3 days or so to accept. If they don't accept, proceed to making your next offer.

i suggest you contact an agent from a reputable agency in the area you wish to buy, so they could give you good and solid advice. Most of them will go out of their way to assist you with the hope that you will make use of their services.


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## Native Texan (Apr 29, 2011)

Just out of curiosity, what did you find after you visited in November? Are you now owners of a Cape property or still looking?


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