How much to offer on property -is 10% less too much ?

abt101

pizzagirl wrote: »

You'd want to be starting at least 20% less than the asking price, assuming that the asking price is somewhat realistic.

Only if the asking price is based on what the vendors 'know' its worth - ie last years value! If its priced reasonably then 20% off is just a plain insult.

I'm looking at a house at 500k, houses on same road sold for 600k last year. So in my book 500k is a reasonable asking price. Offering 400k is just a waste of time. I am considering an offer of 465k to start with.

wheresmydoshat

if you are only going to go to 115k, then you should start at 110k, and then final offer 115k.

wheresmydoshat

does anyone know how long it will be until the price will likely be on the landregistry, are we talking months or weeks ???

3 months i think

goggle

or just go straight in with a £115K "take it or leave it" offer ...

LEEFTB

Your original offer has to be based on your assessment of the property and the condition of the exterior and interior. If it has only been on the market for a week then it is unlikely they will take a low offer seriously. I presume you had a chat with the owner when visiting the property regarding their postion which will give you an indication of how quickly they wish to proceed with a sale.

It takes three months to appear on the land registery. This will give a guide but only that.

If you are serious I would suggest a realistic first offer but then if you need to negotiate go up in £500 a time.

missz_2

Haven't I read on the boards to start at asking price minus 25 percent then be prepared to work up to asking price less 10%? I'm thinking of what offer to give on a 300K property...It's been on the market a year and requires some "modernisation"... help! It's empty and I'm a FTB!

carolt

Nationally, properties are selling at an average of 12% below asking price, and in some areas at 25% below asking.

Sounds like you're overpaying.

Your money, obviously, but bear in mind that in most parts of the country, we're now back in early 2004, pricewise.

See http://www.ourproperty.co.uk for house prices pre-2000, in case your vendor bought before then, to see what it cost then.

themanbearpig

goggle wrote: »

or just go straight in with a £115K "take it or leave it" offer ...

That is another good negotiation option you can try if it is new on the market.
Give in your final offer (£115k), explain your position and reason for offer, and then tell the estate agent you are giving the vendors 7 days to consider the offer, after which the offer is no longer valid.

This is a good method because most of the time the vendors will reject the first offer even if it is high, just to try their luck (hoping they find a sucker). It will give them a bit of pressure, and they will be forced to consider it more seriously.

You have to be a little blunt with the estate agent, which they probably wont like very much, because they are used to taking advantage of the inexperienced buyer. Expect some arsey comments from them!

sharkie

Once you have put in your first offer, it is very hard to then go lower.

Possibly look for a property that has been on the market longer as the owners are more realistic and willing to negotiate

poppysarah

Have you asked the EA what the seller is looking for?

I did on one and she reckoned they'd got to 9k less than asking price (also recently reduced) ...