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jaybee747

Counter offer when buying a condo in Cebu

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jaybee747

I am looking to buy a condo in a high rise building near Ayala. How low the counter offer can be without "offending" the seller? In other words, how much of a discount I can expect from the listing price of a condo if I am offering all cash transaction? (the listing price is around 4m). Thanks.

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Headshot
Posted (edited)

When a buyer suggests a price lower than what is being asked, that is called an offer. If the seller rejects an offer, but comes back with a price higher than the buyer offered, that is called a counter offer.

I think what you are asking is how low can an offer be? That depends on how badly the seller NEEDS to sell the property (and what the minimum they can accept is). A seller who WANTS to sell, but doesn't NEED to sell will not take an offer that a seller who really NEEDS to sell will take. You won't know that unless you have inside information about the seller's motivations for selling (serious illness, large debt, leaving the country, etc.). If the seller doesn't have any impending disaster in their life this will motivate them to sell quickly, then it is less likely they will budge on their asking price. Offending the seller has nothing to do with making an offer. If a seller Doesn't like your offer, then they will refuse it. However, you can always come back with a higher offer if your first offer is refused. Of course, that might have the seller give a counter offer that is equal to the original asking price (since the seller now knows you are flexible on price and really want the property). Do your homework, know what the property is really worth, and (if you can) what is motivating the seller ... and then make your offer accordingly.

 

 

Edited by Headshot
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jaybee747

Thanks Headshot. I guess my question is what is the customary average discount (if any) below the asking price you suppose to get when buying a condo in Ayala area Cebu?

When I bought my condo in South Florida, I could see all latest sales in my building and the neighborhood buildings, I could see the asking price and the actual sell price of all the units sold in the last few years, what I saw is that usually on average condos in my area were selling at 15% discount below their asking price. This information was available to the public and I used it to help me in deciding what to offer when buying. Is this information is available in the Philippines for the buyers? Or maybe only to the real estate agents?

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Davaoeno

Psychology pays a huge part in any negotiation . If you doubt that just ask any top salesman .

I sell lots of stuff . So does Fred. Anyone who offers too little is usually treated with contempt and as a waste of time. So despite the last post I consider the question to be a valid one. Also negotiations are different in different cultures. There is no cookie cutter formula.

 

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Jester

I have a 3 tier system, I really want it and the price is great/good/ok, no haggling.   2nd.  I kinda want it but the price looks like it can be lowered or I am sure I can negotiate the price down with little effort and would not mind walking away.

3.  I do not want it very badly,  but want bragging rights to have gotten it so cheaply and really do not care if I get it.

I put an offer in on a place in Florida way less than the asking price,  they countered with a higher price.  I countered with a price lower than what I had originally offered.

My favorite comeback after an offer.  But it is appraised at $XXXXXX,  I tell them I am sure the appraiser will be very happy with it :thats-funny:

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smokey
Posted (edited)

Well I had a guy offer me CASH money my car is listed at 1.5.   He offered 700.000 peso I did not and he offered again CASH money I suggested he find a cheaper car and he was insulted he said .. It was me that was insulted to have wasted 10 min of my time to respond to.  him 

Edited by smokey
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Salty Dog

I found many of the western ideas don't alway go well in negotiating with a Filipino.

I remember looking at a high value property for rent. By all accounts the owner was asking too much and it had been setting empty for months. I offered him a fair. but lower price. He wouldn't come down. I tried to explain to him that every month he let it set empty, he would lose more money than the difference in the amount I had offered and the amount he wanted. In fact he could have accepted my offer on a year lease and he would make the same he would have made if he were able to rent it at the higher price he wanted after letting it set empty for another month. If it set empty for several more months, which was a high probability, it would take several years for him to break even once he was able to rent it at the full price he wanted. I thought it was so obvious, but not so much to him...

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Davaoeno
24 minutes ago, Salty Dog said:

I found many of the western ideas don't alway go well in negotiating with a Filipino.

I remember looking at a high value property for rent. By all accounts the owner was asking too much and it had been setting empty for months. I offered him a fair. but lower price. He wouldn't come down. I tried to explain to him that every month he let it set empty, he would lose more money than the difference in the amount I had offered and the amount he wanted. In fact he could have accepted my offer on a year lease and he would make the same he would have made if he were able to rent it at the higher price he wanted after letting it set empty for another month. If it set empty for several more months, which was a high probability, it would take several years for him to break even once he was able to rent it at the full price he wanted. I thought it was so obvious, but not so much to him...

I believe the relevant term is " Pinoy Pride"  :rofl:

 

[ and a careful look at  "Pinoy Pride"  will show  that there is no " logic" in Pinoy Pride  :lol: ]

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Headshot
2 hours ago, jaybee747 said:

Thanks Headshot. I guess my question is what is the customary average discount (if any) below the asking price you suppose to get when buying a condo in Ayala area Cebu?

When I bought my condo in South Florida, I could see all latest sales in my building and the neighborhood buildings, I could see the asking price and the actual sell price of all the units sold in the last few years, what I saw is that usually on average condos in my area were selling at 15% discount below their asking price. This information was available to the public and I used it to help me in deciding what to offer when buying. Is this information is available in the Philippines for the buyers? Or maybe only to the real estate agents?

There is no MLS (Multiple Listing Service) in the Philippines, so there is no way to search comparable sales. There is also no "normal" discount. Like I said, it all depends on wants verses needs, and there is no real formula for that. Just find out as much as you can, and then make the best offer you can.

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smokey

Really depends on why they are selling

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Rwtom
2 hours ago, RangerUp said:

how much  the condo is worth based on similar sales.

Where can someone get that info without mls?

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Jester
1 hour ago, smokey said:

Really depends on why they are selling

Absolutely,  we have picked up a couple coconut farms/rice paddys for dirt cheap when there was a sickness or death.  Unfortunately one of the rice paddys was destroyed in a storm and would cost way more than it is worth to restore it. It is right on the circumference road so maybe in a couple decades may be worth something.

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PlanB
3 hours ago, Rwtom said:

Where can someone get that info without mls?

Think 1975 with a dash of 2010.

I didn’t want to believe it either.

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Headshot
Posted (edited)
4 hours ago, seanm said:

One can search olx and get a decent idea. I just typed "condo" and "ayala" and set the location to Cebu

https://www.olx.ph/ph-ceb/real-estate/real-estate-for-sale?q=condo+ayala&locationName=&order=filter_float_price:asc

OLX, Cebu Classifieds and other similar online platforms will tell you what people THINK their properties are worth, but they won't tell you how much they actually sell for. There is no substitute for an MLS, which is why the real estate market in the Philippines is so chaotic.

Edited by Headshot

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