What to start offering at?

firstaspect

We're looking at a house to buy which was originally on the market at £275,000 and has recently (last week) been reduced to £250,000. It's the children of an elderly lady who are selling it presumably as she died so the house is vacant.
We have a house to sell but already have a firm offer on it from a first time buyer.
The house next door which is pretty similar sold in July 2009 for £230,000.
I'm not sure what a reasonable first offer would be to start negotiating from in the current climate, any suggestions?

djheath

Start silly and work you way up. You have nothing to lose.

It's a buyers market at the minute. You are in a good position to say you have a buyer and only one person in the chain behind you.

I personally would offer 215,000. Then go up by £5K until about £225,000. Leave it at that for a few days for them to think about it. Then come back with £230,000 about a week later and say that is your final offer.

I would expect the sellers to reject the first few offers, but you may get lucky. If the house is their deceased parents, then you have to remember, 1. they are in no hurry to move or sell it. 2. They want to make as much as they can to get inheritance, so they may hold out for a higher offer.

Just try and think of all the good things you can offer them as a buyer and use them as your negotiation points.

Good luck!

Jackinbox99

Ive just been through the same process myself on several houses this last month, in an attempt to buy a house!

Normally I would start at 10% lower than the asking price, then work my way up at 7.5% and final offer of 5% less.

The problem you have is that the seller has already just knocked a large amount of the asking price. In my experience recently, that meant the seller refused any offers below that, as they had already reduced it and wanted to see how it would go.

My experiences on the last few houses ive put offers in on this month:

House 1 - vendor just reduced price by 10k. Therefore refuses to take anything less than 1% of asking price. Even though I actually offer upto 1.5% off asking price.

House 2 - had offer "over asking price", so I offer 10k than asking price, accepted. 2 weeks before completion, someone else offers 20k more than asking price. Vendor dumps me and goes with other buyer.

House 3 - been on market for 2 1/2 years for same price with no offers. Needs completely modernising. I put offer in 10% less than asking price. Vendor says he will not accept anything less than 1% off asking price.

House 4 - I offer 10% less, refused. Then offer 7.5% less, refused. End up agreeing on 5% less than asking price.

So, it looks like even tho its supposed to be a "buyers market", from my experience as a buyer, it seems to be a sellers market.

firstaspect

Well I've gone in at 10% below at £225,000. Awaiting the response. Realistically I wouldn't want to go past 5% under but shall see what happens and how desperate they are to sell.

Charliezoo

Jackinbox99 wrote: »

So, it looks like even tho its supposed to be a "buyers market", from my experience as a buyer, it seems to be a sellers market.

I thought it was just me having that problem!

I offered a little over 10% on a house as a first offer which was turned down flat. Then upped to 8% but this was still refused. I'm considering going a little higher but I think it proves that there are very few real bargains to be had even if there is talk of offers 20% or more being taken.

WheelieWood

Charliezoo wrote: »

even if there is talk of offers 20% or more being taken.

I guess it depends where you're starting from. There are still houses in my area priced at over 20% more than the asking price for my house. So, talk those folks down and there's an instant 20% 'discount' for anyone who is playing the percentage game. (I have encountered some folks for whom the percentage seems more important than the price).