Author Topic: What are the acceptable norms when trying to get a property deal done in Ukraine  (Read 2241 times)

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Offline MK22

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When negotiating to buy an apartment here in Ukraine, one which costs around $50,000, is it ok to make a bid of say $3,000 or $4,000 less than the asking price?

The types of apartments that I am looking at are secondary market apartments, which are typically 30 to 40 years old. Is it reasonable to bid $3,000 or $4,000 less than the asking price for these types of apartments? Or is that a bit steep and could the owners get insulted? I would appreciate any constructive feedback.


Offline K24

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No, that is not even 10%

Offline MK22

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No, that is not even 10%

I am not sure you understood what I meant. I said $3,000 or $4,000 less than the asking price. So if the asking price was say $50,000, would it be ok for me to bid $47,000 or $46,000 for example. Would those bids be acceptable given the asking price?

Offline Kord

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You are asking about negotiating with people who try to sell a used car for the same price they paid for it - 100k kms ago..

UKUA

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You are asking about negotiating with people who try to sell a used car for the same price they paid for it - 100k kms ago..

So bloody true.


UKUA

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No, that is not even 10%

I am not sure you understood what I meant. I said $3,000 or $4,000 less than the asking price. So if the asking price was say $50,000, would it be ok for me to bid $47,000 or $46,000 for example. Would those bids be acceptable given the asking price?

K is suggesting you should start much lower. If the asking price is $50k, then start offering at $40k or less.

We got 15% off the asking price PLUS, they left all the quality furniture and TVs.

One place we looked at, the family had already moved and had taken everything, and I mean literally everything, except the toilet pan! Not even an internal door handle remained.

Offline Eddie

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I usually offer half the asking price in Ukie land.  When they get pissed off, give them your # and walk away.  Having built a house there I have learned a few things about dealing with them.  You should already know that there are few mortgages options here and even fewer buyers with $50k (or $30k) in cash sitting around, like read....none.  Yes there are rich folks with that sort of cash in Ukie land, but they are not buying in that price bracket so they are not effectively buyers.



Offline MK22

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No, that is not even 10%

I am not sure you understood what I meant. I said $3,000 or $4,000 less than the asking price. So if the asking price was say $50,000, would it be ok for me to bid $47,000 or $46,000 for example. Would those bids be acceptable given the asking price?

K is suggesting you should start much lower. If the asking price is $50k, then start offering at $40k or less.

We got 15% off the asking price PLUS, they left all the quality furniture and TVs.

One place we looked at, the family had already moved and had taken everything, and I mean literally everything, except the toilet pan! Not even an internal door handle remained.

Thanks for the clarification, now I understand what he meant. I am just a little bit taken aback and there I was thinking that a reduction of $4,000 from the asking price might be a bit too much to ask.  :o

15% along with all the furniture? Well it sounds like you got a good deal there.

I have already been into one of the properties that I am interested in buying, to take a look. The owner didn't meet me, instead he gave me the tenant's phone number to agree a time for the viewing.

When I got there, the place looked in decent shape. The tenant was a student from Algeria. One of the questions I asked him was how much rent he was paying. Factoring in the asking price, the owners were making about 8% returns from renting the property out to him. I thought that was a decent return on rental income that they were making, assuming the tenant was telling the truth. But I am aware that many properties in Ukraine can see rental yields of 9% to 10%.

My thoughts are that the owners may not be that desperate to sell, given that they are getting a healthy rental income. So maybe they wont budge too much on the asking price. But then again, they may want to sell their apartment relatively quickly for personal reasons. Who knows? But thanks again for the advice. Now I know where to start with my opening bid and then it will be down to negotiating the final deal. Your help has been very revealing.






Offline MK22

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I usually offer half the asking price in Ukie land.  When they get pissed off, give them your # and walk away.  Having built a house there I have learned a few things about dealing with them.  You should already know that there are few mortgages options here and even fewer buyers with $50k (or $30k) in cash sitting around, like read....none.  Yes there are rich folks with that sort of cash in Ukie land, but they are not buying in that price bracket so they are not effectively buyers.

Half the asking price? I love it haha ::) ...yes, I am aware of the high mortgage interest rates in Ukraine and that almost nobody takes out a mortgage here because of that very reason. But I have been trying to suss out who the potential buyers of the type of property that I am interested in, would be. But you have just very kindly given me the answer I have been trying to figure out.

I have always understood that the middle class in Ukraine are relatively small in number. Having done some research, I have also come to the conclusion that the wealthy Ukrainians generally like to buy modern apartments in new buildings. Like you have already said, they are not buying in the price bracket that I am interested in.

But for you to say that there is almost no one(well you said none and not almost none) with that kind of money, is great insight. I have been trying to figure that out for a while, so thanks for your illuminating answer. Because the few apartments that I am looking at are all in great locations in the centre of big cities, I thought that there may be some competition. But taking into account what you have said and reviewing other factors, it seems like there is very little competition that will come my way. It now seems like the ball is clearly in my court when it comes to negotiating this deal.

Thanks again for your helpful answer.