is 20% under the asking price a cheeky offer

sdooley

JP I assume you really offered £249,999 not £250K!

trulysaintly

A 20% reduction will not get you every property you enquire about, because it's simple - not everyone has leeway of 20% when they are looking to move home.

It depends on the individual circumstances of the seller - so don't assume (as most on here would like you to believe) that all sellers are money grabbing experts.......

Many are hard working people trying to improve their family's prospects and provide a better home.

There is always more to the situation than 'they should take my offer at 80% of asking price because I'm the buyer and I'm in charge'... many just don't have that cushion....

Not until Brown does the Stamp Duty suspension of course!!

justpurchased

Well £249,995 as I need to buy a bottle when we moved in:beer:

geoffky

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A 20% reduction will not get you every property you enquire about, because it's simple - not everyone has leeway of 20% when they are looking to move home.

It depends on the individual circumstances of the seller - so don't assume (as most on here would like you to believe) that all sellers are money grabbing experts.......

Many are hard working people trying to improve their family's prospects and provide a better home.

There is always more to the situation than 'they should take my offer at 80% of asking price because I'm the buyer and I'm in charge'... many just don't have that cushion....

Not until Brown does the Stamp Duty suspension of course!!

---

The market does not care or take notice of what people need or want for their house as the market dictates the price. I have been watching a five bed near me and its priced at 250k and been on the market two years but they are emigrating to Canada and need the 250k to pay for it but the market has left them behind as they don't want to lower the price and the same houses are now priced 225 to 230k and they have until sept or their visas run out...looks like they are not going..

Doozergirl

sdooley wrote: »

JP I assume you really offered £249,999 not £250K!

3% Stamp Duty kicks in at £250,001.

A property purchased at £250,000 is under the SDLT threshold.

tinecu

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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you can get a better idea of the relationship between asking prices and selling prices in your chosen area now at Home.co.uk
For example in SW9:

Asking price trend:
http://www.home.co.uk/guides/asking_prices_report.htm?location=sw9&lastyear=1

Selling price trend:
http://www.home.co.uk/guides/house_prices_report.htm?location=sw9&lastyear=1

In general your offer should be way below the asking price from what I can glean from this info.

ysatiss

Someone I work with (cash buyer) saw a house they liked for 330k and offered 250 for it. The vendor accepted straight away. The survey came up with a massive problem they weren't expecting and the quote to make it right was 20k, so they've now lowered their offer by a further 30k.
The vendor is thinking about it.
That tells me that no offer is too cheeky at the moment. And the worst that can happen is that they say no...

Rainmaker_uk

This old thread certainly makes interesting reading. I wonder if those who felt they had achieved a great deal still believe this is the case? Also one might think that the vendors are now thanking their lucky stars to have got a sale away!

henpecked1

phew, just looked at the dates, thankfully 60% crash isnt being predicted as i thought!

spend_thrift

I'm wondering what applies in today's market too.

I have just offered 88% of the asking price on a property the vendor bought in May 2008 at the peak of its value. She rejected it and asked if I would increase. The EA seems to think that 95-96% of the asking price is reasonable for a sale, and the vendor wants about 105%! :rotfl:The EA says that the vendor needs 94% to have enough of a deposit to move, and that is £10k over my offer and still £10k under the asking price (ie the asking price is £20k more than I offered).

I could potentially increase my offer by another £4,500 and that still falls short of what the EA says the vendor needs.

Right now I'm talking to a mortgage broker to see if I could squeeze another £5,250 out of a lender to allow me to offer 94%.

Is it worth making an offer that is below what the vendor says she needs to move? She's completely unrealistic about how much she is likely to get, since she's telling the EA that she wants more than the current asking price at the moment... she doesn't seem to quite "get" the market, and although she protests about how much she dislikes the house and wants to move, she's making no effort to make it attractive to sell. I'm not complaining about this since it is putting off other potential buyers, but it does make me wonder what she'll be like to deal with.

Should I go to 94% (the amount the EA says the vendor needs) or start by offering the 91% and hope she'll consider?

When I made my initial offer I told them it was what my agreement in principle was for, and the EA told the vendor that it was because there was work I wanted to do. If I now offer another 3%, the vendor may try to hang on for more, and I could potentially offer another 6% in total if my broker comes through.

Does three offers in a row with quite substantial (3%) increases make me look like I'm holding back and could keep increasing? Should I go for only one more offer and go the whole 6% in one go and stick?