How to make offer to buy a house

ad44downey

Anjalicious wrote: »

I would like to make an initial, low offer on the understanding that I think there is some negotiation to do. What do people feel would be a reasonable opening offer? I don't however want to insult the vendor by putting in too low an opening offer. I've heard that 10% below asking price is fair especially in a buyers market.

Interested to hear what you think , thanks so much
Anjali

I think the actual statistics say that the sale price is on average is 11% less than asking price. So you might want to start negotiations 20% below asking price (assuming the asking price is realistic)

Anjalicious

Cherry, thanks for the info. i think that my limit was going to be 160K. So your logic makes sense.

However going by the previous comment my opening offer would be 135K which seems a little low and a little too cheeky. However am new to this so maybe I should take a bigger chance?

cherry76

I started my first offer at 295k and second and final offer at 300k. House was on the market at 329k, and reduced after three months by 15k. I know the seller bought the house at 300k and did some home improvements. I could have got it cheaper may be by 5k if I was prepared to wait and play the game as there was another buyer. I like this house and did not want to lose it, therefore went for it. I am quitehappy with the purchase. Last year I lost a house I like for the sake of 5k, sometimes it is not really worth the hassle. I hope you make the right decision.

homehunter

Anjalicious wrote: »

Just had some discussions here, and 150K feels right for an opening offer.

Any thoughts on how best to make the offer (sorry this is the first time i've done this!!). I have the vendor's telephone number (which they gave to me), is it worth approaching them directly with the offer or going through the agent?

Also is a verbal offer okay or do I need to make it in writing to ensure that legally everything is covered?

Any thoughts very welcome!

Ring the agent and keep it simple. 'I'd like to make an offer of X on Y property'. Then they complete a form over the phone -your offer, your position (e.g. FTB, renting), if you've got a mortgage arranged/in principle, with who, deposit percentage, your name (and partner) and current address.

I was nervous with a bunch of justifications for my offer, but in the end it is much better to keep your cards close to your chest in the first instance! We're still in the middle of 'the game' - letting vendor sweat it a bit after declining our first offer. They're the ones who've been trying to sell for nearly two years after all...:p

Anjalicious

Hi everyone, i thought I would give a quick update and another request for advice!!

I made an initial offer on the house at 150K. This was rejected immediately as being too low for the vendor to accept (and I was not surprised as its not been on the market long).

I then waited some days (about a week) before putting in another offer at 154,500. I also reiterated my position as a FTB with no chain and thus ability to move quickly.

Again this was rejected immediately but the EA will not give me any indication of the level of offer that the vendors are expecting. As both offers have been rejected immediately I think that I am not even close to a figure they would be willing to consider.

Does anyone have any advice on my next move? All thoughts gratefully received!
thanks

LilacPixie

I would personally wait and see what happens. You feel your limit is 160k so if you up your offer again they may feelthere is more money to get and hold out.

With regards to the house how much is it worth to you?? If you are not desperate to move I would personally sit back and let the sellers think about things.

cherry76

Why don't you ask EA how much the present owners are prepared to accept? EA did give me an indication of the lowest offer owners will consider. If he rejected your offer straight away he knows the price they want.

cherry76

You said your limit is 160k, if you really like the house offer this as your last and final offer. If you can wait I would wait, in this market I would not be happy to pay near the asking price unless I am really desperate. Just walk away. 160k is a good price.

Anjalicious

hi everyone thanks for the quick responses.

I;ve asked the EA a couple of times to tell me how much the vendors will accept. all he says is he doesn't know a figure, the vendors will negotiate but not at the levels that i have offered.

My only concern is if i wait, there are others who are definitely interested but they are currently in a chain and can't sell their property, that situation might change and I might end up competing against them.

cherry76

I think, he must know. When I made an offer on my house, there was another couple competing with me and I have no chain and could complete within 4 weeks, that's the condtion of the vendors as they are desperate to sell. I jumped from 295k to 300k, that's the lowest they will accept considering they bought in 2006 for 300k & spent quite a bit of refurbishing. I guess, it depends how desperate the sellers are to sell!! 160k is a good price in this market, I would raise my offer to that and be prepared to lose the house. I do not believe the EA does not know the lowest price vendors will accept. EA did give me an indication of the price, I always asked. I could have increased it bit by bit, I did not want to go back and forth. Good luck, hope you will sorted soon.