How low is too low on an offer?

jamtart6

A house in a lovely road, decent size (would have preffered 2 receptions, but there is room to build on if the neighbours agreed!) is on the market for £119k which is about £30k less than it would have been in March time. Not many pictures on the web, so assuming it needs more than a lick of paint, but we'd be happy to do that.

Providing we could get a mortgage :rolleyes: how low is too low to offer? We are FTBs with a good deposit, and both have decent jobs. I know you'll all say "wait a few more months it'll be half the price" or whatever but houses around here don't come on for sale very often, never mind at this price. We would never have/want to move out of this house, I would no way buy now if I knew I had to sell in 2-3 years, but we would stay here.

Basically, we're in a good position (mortgage pending!) so how low should a first offer be? 10% lower is £107k and 20% lower is £95k. Would you just smack me in the face if I offered you 20% less than the (already reasonable) asking price??

Davesnave

You are wondering if more than 35% off the price 9 months ago is realistic, which gives a monthly drop of around 3.9%; a figure not realised in any month to my knowledge of looking at Haliwide/Rightmove stats.

Stats are one thing, but it is the motivation of the seller that counts. As a very rough average, people on this forum's sellers' thread seem to be seriously considering drops of up to 22%, but we've had no one admit to being a 'distressed seller.' This tallies with the year-on-year drops of 20% or so on agreed sale prices as reported by Rightmove.

You need to meet with the owner, or at least find out more about the property, before you can know how to pitch this accurately. You also need a mortgage in principle if your offer is to be taken seriously.

In 'average' circumstances I'd say that getting a further 10% off the price would be the max, but with someone highly motivated to move, or a property that needs attention, there might be a little more scope. If the road is as good as you say, however, there may be some competition, as you won't be the only couple sitting on your hands.

beccam

Go for a viewing and see what exactly needs done, you can use that in your bargaining and also try and get a viewing by the owners, ask them what they're situation is, if they have a house to move to they'll be more keen for a quick sale but they may just be prepared to hang about and wait for the best offer!
I would say going below the £100K mark may be too much for them to stomach since they are probably kicking themselves for not selling last year, but if you offer just above the £100K mark they may be more likely to consider it, or at least negotiate rather than just kick you in the teeth!!

JoolzS

As this is a bit of a "how long is a piece of string" question, I'll just answer with how I feel and not how the market is doing/going to do.

From the sound of your post you are looking to buy a home and not just a house. I would suggest working out how much the payments would cost you if mortgage interest rates went up a few percent, if you could afford them, and if so just offer what you think is a fair price. I'm guessing that £105K sounds about fair, if you can afford it, so perhaps start at £103K.

I bought a home with my now DH around 15 years ago. Since then we've both wished for something different (it's a two bed flat without a garden or garage and I'd like a garden and he'd like a garage), but we simply can't afford to move. Fortunately because we completely fell in love with this place on first viewing we never *really* regret buying it, or not moving. It's home.

Julie

RDB

I know a woman who is just going round ringing up every house she likes and putting in 50% offers. Obviously she is going to upset a few people. But she maintains one day soon someone desperate will say yes, or at least come back to her and say 60% or something.

Its interesting to see what happens. She is in no hurry she has the cash in savings account, so she will keep on her `hobby` until she finds someone who says yes.

Time is on the buyers side for the next few years at least.

EliteHeat

RDB wrote: »

I know a woman who is just going round ringing up every house she likes and putting in 50% offers. Obviously she is going to upset a few people. But she maintains one day soon someone desperate will say yes, or at least come back to her and say 60% or something.

I couldn't live with that much rejection. I get upset if my trade quotes are delined!

RDB

EliteHeat wrote: »

I couldn't live with that much rejection. I get upset if my trade quotes are delined!

Most people are stronger these days, the only houses actually selling are the desperate sellers who accept crazy offers, because they have no choice and they know prices are falling every month.

Davesnave

RDB wrote: »

Most people are stronger these days, the only houses actually selling are the desperate sellers who accept crazy offers, because they have no choice and they know prices are falling every month.

Sorry, RDB, but that isn't true, and such sweeping generalisations do you no credit.

If you look at the thread entitled 'To those selling in these difficult times...' you'll see how many MSE members are faring as they try to sell. This will take you some time, as it's a long thread, but it gives non-selective picture of what's going on. Most of those posting aren't distressed; they simply want to move. Most are also ready to deal, but not at any price.

m00m00's sig, which you also use, was meant in fun. If buyers come on too aggressively they will be knocked-back. That helps no one if, by taking a more constructive approach, a deal to suit all parties could have been agreed.

brightonman123

£110k, less any repair costs needed.

jamtart6

Well we're going to view it this morning and I've already rang the mortgage advisor to try and sort something out. It has just been reduced to this price, but unfort. not sure what the price was.

Another couple are going to see it just before us too and the estate agent said there has been a lot of interest (she would say that I'm sure) but I do sort of believe her as its a fabulous price.

Thanks for the advice all of you, I know it is quite difficult to estimate what isn't cheeky. I do wonder if they might get the asking price on this house, because it is a good price. However, it has only been on 5 weeks, it is vacant and already been reduced once, but I do expect we'll have a lot of competition if we were to go for it.

I think going below £100k is probably far too cheeky, but might go in around £107-£110 which is only 10% less. Need to have something to negotiate with!....

....edit: mortgage pending of course :rolleyes:

Heyman_2

RDB wrote: »

I know a woman who is just going round ringing up every house she likes and putting in 50% offers. Obviously she is going to upset a few people. But she maintains one day soon someone desperate will say yes, or at least come back to her and say 60% or something.

Its interesting to see what happens. She is in no hurry she has the cash in savings account, so she will keep on her `hobby` until she finds someone who says yes.

Time is on the buyers side for the next few years at least.

What a waste of time on her part. Does she seriously think that someone who has their house on the market for say, 200K would accept 100K straight away?

Don't get me wrong, probably over the course of time, we'll see that on certain properties that have been on the market for a while with steady reductions over a long period. But no-one in their right mind is going to reduce the value of their property by 50% in one fell swoop.