What's a 'reasonable offer'??

Chick

I'm a FTB and am looking to make an offer on a one bed flat, the only thing is I don't really know how to pitch the offer, that is what is a reasonable offer in terms of % of the asking price i.e. one that will get you taken seriously?

The flat has been on the market for a couple of months and I (obviously) consider it is slightly overpriced. I've not made an offer before and wonder if anyone has some sound advice...

rrwfotr

Hi why dont you get a mate to put an offer in and then you could see what the vendor say's etc. Usally the price is usally related to demand therefore if it's been on the market for ages then you coulf make an offer of around say 5 % below the offer price etc

rizla01

Hi,

Totally depends on the price they are asking.

Of course they may not budge at all. Depends on THEIR circumstances, too.

This also depends on the rarity of property in the price range that you are looking at, BTW.

As a rule I shall assume an Asking price of £120.00 in which case, provided everything says it's worth that then I would go in at £107. 00 and let them sleep on it.

They most probably will come back at £115.00 and you should get a deal for Around £110.00 - £112.00.

Good luck,

Riz

Debt_Free_Chick

Have you looked at similar properties on the market, in the same location to benchmark the asking price? Why not ask some other estate agents? Often, they were asked to market the property and may have suggested a lower price. They might reveal some interesting flaws!

Are you buying the worst property in a good area (with the potential for growth) or the best property in a less good area (in which case, expect to pay top whack).

Do you want the property as your home as you have fallen in love with it - flaws 'n' all - or is this a first step on the ladder, with a view to selling again in a few years and moving up?

no need to answer, but hopefully some things for you to think about to help you make a decision

alanobrien

Chick wrote:

I'm a FTB and am looking to make an offer on a one bed flat, the only thing is I don't really know how to pitch the offer, that is what is a reasonable offer in terms of % of the asking price i.e. one that will get you taken seriously?

The flat has been on the market for a couple of months and I (obviously) consider it is slightly overpriced. I've not made an offer before and wonder if anyone has some sound advice...

go to https://www.ourproperty.co.uk and do a search to find out how much similar local properties have sold for in the last 6 months. That's a good place to start to make sure the place you are interested in is realistically priced.

Then if you are happy offer no more than 95% of the asking price to start and negotiate from there.

Good luck.

Joannaclaire

I'd go so far as to suggest offering 90% of the asking price. As a first time buyer you are in a good porition and have no chain. you are only a first time buyer once, so start low. If it has been on the market for a while or they are in a hurry to move, then you might get lucky :-)

dougk_2

It really depends on the area. From our recent experience in the "reading area" offering more than £5k less than the asking price gets an instant knockback. Many houses are going for the asking price or very near to it.

I think this is because many houses in the area have been reduced in price and owners no longer can afford or wish to take offers. Estate agents are seemingly being more honest about the true values as well.

loanranger_4

You've some excellent suggestions from the other users.

Do lots of research, what was the price it went to market, how many offers they have had, what's your competition like (usually in a chain), what prices are they selling in the area etc.

I would also suggest offering 90% of the asking price, be prepared to be told that there are other buyers offering more, or the offer is too low etc. Be prepared to up the offer to about 93/94 % which is the national average selling price.

Find as much justification to back up your offer, e.g. needs a new kitchen/bathroom/redecorating, no good local schools, too near a busy road etc.

I've found that subsequent offers are taken more seriously than the first, it demonstrates to the agent/buyer that you are indeed 'very interested'.

Above all enjoy it, house buying is an ideal example of how a barter economy would work, where else can you save yourself thousands of pounds using your negotiating skills!

Thanks

Chick

Hi there everyone,

Thanks so much for all your suggestions, I was in the running for getting the property at the price I wanted but then they went with another buyer- a couple- and I just couldn't afford (or want to) up my offer.
Anyhow, it's given me loads to think about/angles to take, so my flat hunting continues but feeling a lot more informed and confident about what I can offer, and what is a realistic price in the market at the moment!