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Offer price tactics

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Comments

  • We went for the no nonsense approach and offered our maximum as a take it or leave it offer. The estate agent/seller seemed to want to play the haggling game however, and came back to us 3 times over the course of a week to say it wasn't enough but if we could just offer a little more they might consider it...

    Eventually they did accept it, but I think most sellers /agents seem conditioned to play the game and feel like buyers always hide their actual maximum.

    In the final "round" I had to really stress we weren't playing games and point out we were looking at other places as it we couldn't go any higher.

    I don't understand the psychology of this negotiations, much prefer genuine asking prices and offers - there's enough stress in house buying as it is!
  • Surrey_EA
    Surrey_EA Posts: 2,042
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    In the final "round" I had to really stress we weren't playing games and point out we were looking at other places as it we couldn't go any higher.

    I don't understand the psychology of this negotiations, much prefer genuine asking prices and offers - there's enough stress in house buying as it is!

    It's a game when the sellers ask a buyer for an increased offer, but it's not a game when you offer below the asking price? Surely you can't have it both ways?

    If you want to avoid "playing games" just offer the price the property is advertised at! But it seems you went viewing houses listed at a price you were unable to afford, something a seller may consider to be playing a game.

    Nobody is "playing games." It's called negotiating. The price rarely feels enough for the seller, and normally feels too high for the buyer, that's just human nature.
  • Nadeshkarine
    Nadeshkarine Posts: 31 Forumite
    edited 7 December 2017 at 2:59PM
    I guess what I meant is that this back and forth is so ingrained that they don't really believe you when you say it's your maximum. They assume that we are hiding an additional offer when we offered a fair and final amount. I felt it was a bit odd to turn it down asking for more, but then be happy to accept it after all. But I guess it's all down to how each side feels.

    In terms of asking vs offer price it depends on the market but we offered in line with selling prices, which is how we determined our affordability. We've been monitoring the asking and selling prices in the area (albeit with the lag) and nothing has gone for asking that we've seen. I think part of this is the market returning to more even levels after a lot of years of above average growth.

    So for the OP my feeling is go for whichever approach you are more comfortable with and based on the local market. If it's still very buoyant and seller driven they may expect more haggling. I do wonder if our sellers would have been happier if we started lower but had negotiated up to the same price. From our side we didn't want to risk missing the house by offering too low and wanted to give as honest an initial offer as possible.
  • Surrey_EA
    Surrey_EA Posts: 2,042
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    I felt it was a bit odd to turn it down asking for more, but then be happy to accept it after all.

    Not really that odd. The vendor was obviously hoping for more, and when it became clear you would not increase further, and they received no other offers they made the decision to accept the offer you had earlier made, despite having previously declined that figure.
  • RedfordML
    RedfordML Posts: 892
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    Zero benefit of going in at 190k.


    If you offer 183k, it may get accepted, so going in at 190k you could overpay.


    Also if they flatly refuse 190k, you've no scope for movement. They refuse 183k, go 187k, then 190k to show how keen you are.


    good luck.
  • theGrinch
    theGrinch Posts: 3,122
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    no such thing as a standard case. depends on the positions of buyer, vendor and competitions
    "enough is a feast"...old Buddist proverb
  • We're trying to decide on just the same situation at the minute. House is listed at £400k. They've already reduced by £10k since first listed. My husband wants to go in at £375k but I've been leaning toward going in with £390k which is the max we're willing to pay. I'm afraid £375k is too cheeky and might upset them but he reminded me that we made a cheeky offer for our current house and ended up getting it for £23k less than the asking price so I think you're always better going in lower... even if it does make me nervous we might miss out!
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