Quote Originally Posted by WhoCares View Post
I'd love a buyers agent but thats a concept we dont have here in Oz. We dont have many concepts when it comes to purchasing propperty, just the old fashioned mortgage via a bank. But thanks to LZH and others for giving me the shove to move forward regardless.

So asking price is $350k, market value approx $270k, I'm willing to pay market value only given its location, a small rural town where properties take at least 9 months to sell, even in good times. Past few years have seen property values fall in this area, very little capital growth in the past decade. The home is atypical for the area so its not got wide market appeal for local demographic.

Offer $250k?
Again, it depends on how much they'll budge. 250k can be a good offer but you're only giving yourself 20k to work with. They will need to come down 80k while you can only go up 20k. However, you do have the market value available which is your hard cap, so you can stop there and say that is the market value and the most you can offer. If what you say about the local housing market is true and they know it, seems like they would (or at least should) take 270k.

On the other hand, if you were to leverage the poor market for the house and offer only $230k, it might "help" them jump to the 270k market value themselves. Technically, the middle of that spread is 290k though so keep that in mind. Instead of you trying to convince them that you should only pay market value, I'd lowball them a little more and get them to try and convince you to at least offer market value. That's when you say "I can't do any more than 270k" and they accept thinking they got the most they could out of you as well as fair market value... which they did, but in this case it also happens to be 80k lower than what they were asking.