What is a reasonable offer?

slicendice

Hi
I'm a total and utter newbie when it comes to house buying but I'm sort of thinking about making some steps (scary!!). However, I was wondering what is generally considered to be a "good offer"? Is there a set percentage below the asking price that is generally acceptable? Or is it just a case of making a judgement on a case by case basis?

Let's say the asking price was £149,950 - I guess it can very much depend on a number of different factors (how desperate they are to sell, how long it's been on the market, etc, etc) but in the current climate, what would be a sensible offer? Obviously I don't want to pay more than I have to, but I don't want to get laughed out of play with a stupidly low offer.

Or is putting in a very low offer a standard starting point? And then just keep increasing it until it's accepted?

Sorry for my ignorance on all this!

laughingcow81

There are loads of threads on this...but in a nutshell you should weigh up carefully what you can afford, your budget and how much you really would pay for the property.

It is important to offer what you think is a reasonable amount - for example we put an offer on a property on the market for £190k, we started off at £170k because of the amount of work that would need doing to it (new kitchen, wiring, boiler) and agreed between ourselves that £175k was the maximum we would go. They rejected our offers as the vendor wanted £180k for it. Despite loving the property we were not prepared to pay over the odds for it, as it can leave you feeling resentful if you overspend.

andy69_2

I would start at about 10% lower than askin price, obviously depending on the work that needs doing, and then go up from their but always leave yourself a couple of grand to play with once you say its your last and final offer and you cant go anymore.

slicendice

Thanks for the info...much appreciated!

It's all a bit of a scary concept, so all help is very gratefully received!

N1AK

Only worry about %s if you are trying to get the house for more than it is really worth. The asking price for a property isn't some accurate measure of 'real' value, it is a figure plucked from the skies based on a number of factors (one of which may happen to be the quality of the property).

You should consider what you think the property is worth. If this is very close the asking price and you don't think you have a strong position don't get too greedy (more than 10%). If you think the house is over-priced then sod the asking price and offer whatever you think it is worth.

andy69_2

N1AK wrote: »

Only worry about %s if you are trying to get the house for more than it is really worth. The asking price for a property isn't some accurate measure of 'real' value, it is a figure plucked from the skies based on a number of factors (one of which may happen to be the quality of the property).

You should consider what you think the property is worth. If this is very close the asking price and you don't think you have a strong position don't get too greedy (more than 10%). If you think the house is over-priced then sod the asking price and offer whatever you think it is worth.

Most people will add about 10% to their property because they know people are going to put offers under the price!

rsykes2000

Looking at one recently on the market at 140K, put offer in of 120 and bartered them down to 128 (so a bit less than 10% off).

asajoseph

In my recent experience, a lot of vendors are being somewhat unrealistic about what they're expecting at the moment.

Indeed, of all the properties we've looked at in our price bracket, 2 of the 3 that were worth a second viewing were both explicitly asking for the asking price.

One flat (which I liked more than my partner and we've decided not to pursue) had previously been under offer at the asking price, but the sale had fallen through after the purchaser couldn't get a mortgage. Apparently, according to the agent, the asking price may not even be enough for the owners to secure the home they want!

Another flat (which we might offer on) seems to be expecting to get the asking price AND half the cost of extending the lease (which will cost £17k in total). It's a nice flat, but the vendors have unrealistic expectations it seems, which I have no intention of meeting. I guess time will tell whether or not it can come on a sensible offer, but it seems that a lot of people are setting their sights on their dream home, but budgeting to receive the asking price on the property they're selling - unrealistic, surely?!?

MoneyMoose

As a new seller, can I just give my tuppence worth?
I am finding some very rude and cocky viewers coming round ("it's a buyers' market now so you will do as we say!") Fine. Except it's not - there's no need for it. Instead of being polite and asking us our situation (we don't need to sell urgently, we're not under any financial strain, and we haven't/won't even started looking for a house until we're at least under offer) we are being made to feel extremely grateful for the viewing and being told that we will have to get out and rent if they feel we are worthy of an offer, as they have sold and wouldn't want to jeopardise their chain/sale!!!

I would not take 10% off my house (on at about £200k) as we have already taken 'the price hit' (a few years ago, a similar house was sold for £235k, and we've done more - add conservatory, granite, new kitchen etc). The only way I would reassess my price is if there are further falls across the whole market, then the house I buy will be lower too.

I'm willing to be a little flexible (say £5k) but no more. A lot of sellers have taken the market falls into account in their asking prices, so please, as someone else has said here, find out the situation and offer what you think it is worth to you (even if it's near/at the asking price). If it's not (and I know there are some sellers still in cloud-cuckoo land) - then walk away; there'll be another one.
Good luck!

PS also check out the floor plan carefully, so that you know what to expect and save everyone's time if the house is too small for you and your furniture.

hethmar

I agree with you Money - its a very long time since we sold, but as soon as we felt the people viewing were being cocky, there was no way we would have sold to them anyway - you couldnt be sure they would go through to the end.

Being polite costs nothing and if someone really wants a house then the sellers may choose a "nice" potential buyer over the cocksure one.

But back to the question - check out on land registry what other houses in the same road, the same type of house of course, sold for and then you should be able to gauge a reasonable price. it may be these people are like Money, they have already discounted the house to a level they feel is reasonable in this climate.

Milliewilly

I am putting an offer in on a reposession tomorrow. It was sold in August - advertised price was £240K. I don't know the price it sold for then however that deal has fallen through and the house is now advertised at offers over £210K.

The house needs a considerable amount of work - think of everything major - roof, windows, staircase, kitchen, bathroom, ensuite etc. I am guessing the reason it fell through was when the Mortgage surveyor visited.

My offer is going to be £185K cash with a completion in 2 weeks time not subject to any conditions, survey etc.

I will report back how I get on.