Selling in current climate and what offers to seriously consider

ma_ya

Hi there

My property has gone on the market 3 weeks ago, 14 viewers so far, and 2 offers. Problem is, they are way below my asking price, and way below outstanding mortgage. However, I don't want to make the mistake of saying no to offers and then ending up with no sale.

So, what's going for the property is that it is chain free, vacant, close to train station, in desirable location, recently redecorated and new carpet. 2 big double bedrooms. So it's been priced by estate agents at £219,950. Offers made was £185,000 and £194,000. Outstanding mortgage is 190,000. I was hoping that in selling, I would be able to clear my debt (£12,000) and be able to pay at least the estate agents and solicitor's fees. So my ideal price would have been in the region of 205,000 - 210,000. Is this realistic in the current climate, or am I living cuckoo land?

Any thoughts very welcome. Thanks.

cupid_s

When did you buy and how much did you pay?

Doozergirl

Sounds like you're doing okay at the moment. People seem to expect a discount in this market and whilst you can't value a house based on what you owe, I should hope that someone would offer 200 on it based on the number of viewings and offers so far. The asking price isn't frightening people obviously as you've had a really good number of viewings so far.

Were the offers made raised at all? Have you negotiated, agreed that you will come down in price but they have to come up a bit also?

If you want 205-210 is it not worth dropping the price to 210 - it might provoke a reaction from previous viewers and encourage new viewings also - not everyone is comfortable actually making low offers and will look closer to what they want to pay. I've always stuck to the principle of marketing a house for what you want for it as each thousand you add to the price, you're excluding a potential buyer.

sarah_elton

It's really hard to say because whether the offers are fair depends entirely on establishing the valuation now.

What did you buy for and when?
Do you know what it would have sold for at the peak? (Spring-Summer 2007)

With mine, I bought for £115k in Jan 2006 (am in the south-east - also near the mainline train station, recently decorated, new carpet, no chain). At the peak, it would have sold for £125k. I advertised at £112,500 and am selling for £103,500. This is a drop of 17.2% since the peak value, which is pretty much in line with the national average figures. My place is a flat, and in general these have dropped more than average, but it's top floor and I've done a lot to it which has propped it up. Since the offer I accepted was in line with the headline price falls, I felt it was fair.

woody252506

Personally I think the 194k offer was an reasonable one. Thats about a 12% drop from what its on for. In a good climate the general start of negotiations is with an offer of 10% lower than the asking price therefore in the climate now I think 12% lower is a very good offer to recieve.

All my opinion of course!:D

ginvzt

You can go back to both potential buyers saying that there is another offer. If they really want the property, could they revise their offer and you will make a decision on the new figures. Wouldn't drag into bidding war, but give a second chance. On the house we were really keen, which was on for £209950, we went in at £190k. There was another offer. EA came back saying there is another offer to both buyers, we thought hard, we called vendor that night and asked what he would consider. He said if you give us £205k, the house is yours. Next morning, we put an offer in for £205. Next day we hear the another offer was excepted. it was for £210k.

You are not trying anything bad, I would say £194k offer is good, but you can give buyers a chance to up their offers.

zone

Is it a 2 bed terraced? Maybe the £220k valuation is a little optimistic. But the £194k is very good if there is demand in your area and you can achieve that. If you are fairly confident there are buyers dont let it go too early for less than £190k.

QTPie

Did you try negotiating on the offers or did you just reject them outright?

QT

spuds_2

If you have had 14 viewings and 2 offers in 3 weeks, I would say your house is on at the right price. People always want a discount, noone likes to think they have paid the full price, especially in the current climate.

You could ask your EA to speak to those who have made the offers. Without telling them how much you need, they could suggest that the offers fall a little short of what you need to getand ask if they would meet you around half-way at £102,500.

It's a tricky situation - you don't want to lose a possible sale, but such a lot of interest in a short time suggest your house is on at a keen price and a better offer may be around the corner. Good luck.

besonders1

I think £194k is a good offer, as I suppose it won't be long before asking prices drop to this level, then offer would be much lower than that. I suppose time is money in this market not like before where you could just wait for a higher offer.