To offer 50k less than asking price

[ladybug92]

We are looking at a unit to buy. Offering price is 590k however estimates on 2 independent sites say 535k and 545k as the medium estimate. Surrounding units in same complex with similar configuration have sold for less than 590k.
Would we be unreasonable to offer 540k? Prices in NZ dollars if it matters. We financially go a bit higher but don't want to offer our best price. It's is a great location, property is in ok condition. Would be a good move for us but it's not a dream home and we are not totally invested in it.

Have not offered on a property before, would like some advice from sellers on expectations and buyers on how much you can haggle. Comms is through an agent.

You can offer whatever you like

Of course, but is it too cheeky?
I think I read somewhere up to 10% off asking is okay but can't be sure...

Offer what you like, but expect to be turned down.

How long has it been in the market, and how long do units in that complex typically take to sell? I'd expect to be turned down unless they're desperate to sell.

I offered almost half of what they were asking on the house that I live in in Los Angeles and got it for a little more than what I was asking, but significantly less than what they were asking. It's a business negotiation, not a date. You can be as "cheeky" as you want. You just have to be prepared that you may not get the house. And don't let the estate agent talk you out of it. (I have purchased quite a few homes in several countries and States and have always offered substantially less than the asking price...and not always gotten the places I was bidding on.)

Hmm 50k in my pocket or maybe being cheeky that they can reject anyway

It's been on the market on and off about a year steff13, owners situation changing. Seems like a while?

I'm not sure about how quickly other units went, the last one sold a few months before and we weren't following then.

They can only say no and at least it will start the negotiations off. House prices seem to be booming in many parts of NZ, so a lot depends what the market is doing in that area.

Have a go, you just never know how quickly they want to sell and you could be lucky.

Just seen your update - I would offer $530K if it has been on the market for a year! I cannot imagine how it has not sold in NZ over the last year, houses where I am seem to go really quickly, although it has slowed a little over last couple of months.

Depends on where you are. Christchurch I would chance it. Wellington i wouldn't. What's the councils RV?

A year is a long time. I'd make the offer.

Agree with Shelties; if it's been for sale that long I'd offer even less, though I'd also do some research into why it was unsold rather than taking the owner's word for it

Someone once said that if you're not embarrassed by your first offer then it's too high, and personally I think they were right

You can offer. They can refuse. Then negotiate.

20% under the asking is what I usually start at.
You can always go up....never down!!!

What's the worst that could happen? They can only say no!

I'd go in at 525 then negotiate up. We offered 40k less on a new build, they said no and offered it us for 30k less (we didn't buy it) always start low, I thought that's what everyone did!

Offer what you want to , it’s only worth what someone will pay for it . If it’s not enough then they’ll say no.