is 20% under the asking price a cheeky offer

boinging_2

mummyemma wrote: »

Thanks

This is all food for thought. I want to go in with a low offer as like people have said I dont want it to be worth less in a years time. However the property needs work so hopefull this will add value and its a property I intend on been in for the next 10years plus

While I agree with opening the bidding low, the real question is how much to you want to buy this house?

You will hear a lot of advice on here about prices tumbling (which they are) but who's to say how much this flat, in that street in your area will drop. Also if you wait a year, yes prices will be cheaper but will a house like this be on the market or will there just be dross which you don't want to buy anyway.

As I say it's all about individual properties not an average figure on this website or that website. Say you lost £20,000 in the value of the house (though you would never know this unless you sell / remortgage) in the next 24 months, but then in the next 50 months it goes back above the value you bought it for - have you lost or gained in the "crash"?

Also I take you have sold recently if you are in rented property - how much did you discount?

cusally

i'm helping my mum househunt just now, we are amazed at how many sellers seem to think their house is still worth so much
Look on https://www.nethouseprices.com to get a list of what properties in that road have sold for since 2001, I have taken a list to a street and stood there estimating whether it was a 2 bed, 3 bed or whatever.
Estate agents are either encouraging people to aim for 30k too much, or are overestimating to get the business. When agent after agent is posting a price at more than 30k over the price a house last sold for in that street there is sadly no way to have a sensible discussion.
My mum is a cash buyer, has shown the seller that another house in the same street, same size etc sold 3 months ago at 30k less, yet they still think they can get a better price for their precious house. Thats why we are still looking, no point buying from idiots !!

I feel sorry for anyone who is selling a house that they bought less than 2 years ago, but its time the house prices came down, and people should not be buying and selling houses as if they were normal commodities

crunchy_with_ketchup

There is a degree of risk to a very low offer. If you come in at, say 20% below the asking price and your offer is perceived as ridiculous it will be rejected fairly quickly. If you then edge it up a little, it may still be seen as ridiculously low. If you then come back with a third offer, the vendor may continue to hold out just to see how much more you will offer. It looks like you are on a fishing trip.

Of course if you like the house, but are prepared to go buy something else, then a low offer, followed by a slight increase, then walking away would demonstrate you were only seriously interested if the price was right.

I'm currently buying and my own experience is that some people are hopelessly optimistic with their pricing and refusing sensible offers, while those that need to sell - especially properties that need work - are having to take low offers. There are still buyers out there, but it has to be the right property at the right price. My impression is that average prices around here are back to about 2006 levels.

Martin

ema_o

mummyemma wrote: »

From what I can see the 2000-2002 prices range from £80,000 to £135,000 but its hard to know if those are for 4 beds or 3 beds as there is a mixture in the street

Thanks

Check https://www.nethouseprices.com/ for the selling prices, then visit the street armed with house numbers - that way you can compare with something of a similar size.

ceebeeby

I think 20% under isn't insulting, but anymore would be. It wasn't that long ago in Scotland that houses were 20% over!!!!

Any less than 20% under, I think they'd tell you to shove it .... I would!

bert1fegg

Wise words from crunchy_with_ketchup, I think.

Do you feel it would be cheeky? Do you mind being cheeky? It sounds like you do. Personally, I think I would feel uncomfortable making an offer which is way below what I am actually prepared to pay, especially if I really want the property. If I didn't want the property that much, or I couldn't afford to offer more, or I was an investment buyer, then I'd feel much better about making a low offer knowing there was every chance of it being refused.

ecw

Thanks to my husband leaving, I am now having to sell the family home. This was worth over £400,000 this time last year and was valued at £365,000 to sell in May 08. Put it on the market and first viewer offered £325,000 which I refused. Second viewer offered £265,000!! After I stopped laughing I refused. Came back with £295,000 which I again refused. Came back again with £325,000. This made me sit up and take note as he was a cash buyer with a small mortgage. So I offered £220,000 on the house I want (was on at £249,950) and they finally accepted £225,000. In turn I finally accepted £335,000 for my house. This means I will be mortgage free as Husband is giving me all the equity from the house (there's still some good in him!)

So silly offers are worth making - just don't be upset if they laugh! Sellers also have control over the market, not just the buyers.

Max_Headroom_3

mummyemma wrote: »

We are currently looking at buying a new house and are in a rental property at the moment so no chain. Have seen a house we like and I think we should offer about 20% under the asking price, or it that to cheeky??

Thanks

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Emma, there is something fundemental you need to understand before you proceed.

The asking price is not "The Price" and the gap between that that your offer (ie 20% off to use your example) is not "Your Discount".

The asking price is simply what the owner of the property thinks/hopes it is worth.

It isn't like buying a new car where there is a sticker price and you try and negotiate as much as you can off, the asking price might be good, or it might be hopelessly optimistic.

To put this into perspective, if they upped the price to a million pounds, and then gave you 50% off, you'd be getting a huge "Discount" but still paying much too much.

Forget percentages and asking prices, work out what YOU feel the house is really worth in the current economic climite and stick with that.

At the extreme, some city centre new build flats that people (foolishly) paid £250,000 for are now selling for half that figure. Are the buyers getting 50% off? No, they're paying what the places are really worth, the percentage is irrelevent to them.

Cameron

This is partly repeated on another Thread, but what the elf.

Take a look at this http://www.taylormob.co.uk/house_pri...es_v_time.html
Makes grim reading doesnt it!

Rising food, rising inflation, rising oil and a debt mountain described in willieans... or is it pillians.

My guess (and I now nothing) is average house prices will fall by 34% (24% drop and 10% rise in inflation) but whats worse is the bottom end of the market like terraced houses will fall by 60% (50% drop with 10% rise in inflation) I can see a 15% drop allready, this is probably thanks to all the buy to letters who rushed in! - see http://www.houseprices.co.uk/ and check your street sale prices if you dare!!!!!

Sadly its always the people who need the most, who loose the most.

I'm sorry if this appears very unfair but thats life.

On the positive if you've allready got an over priced house and a mountain of debt then dont worry, with this rising inflation it wont be long before you owe nothing!

You dont want to be paying current market rate for a house in a falling market! You need to be paying less than the lowest price the average house will fall to, because you dont want your house price to be stagnent for 2-3 years.

Just because everyone else made a mistake by jumping on the ridiculus housing property boom, with their gazumping and desperation, doesnt mean you have to compensate them!

Anyway what does it matter how much your house is worth! you arent going to profit from it! It only matters to your kids when you die, o'yes and the tax man!

Cameron

ricey_23000

As an ex estate agent of 30 years I would tell anyone not to buy a property yet. The market will fall even further but the average vendor will not accept that yet. I sold my house at the end of last year as I could see what was in store. I am in rented accommodation and intend to stay here for at least 12 months. Price falls of at least 15% are still to come.