how much to knock off a asking price?

myhouse_2

wannaberich41 wrote: »

Are house prices higher now than they were in dec 2007? The reason im asking there is another one that is over our budget and looking on that rightmove house sale prices thing. This house in 1999 was sold at 90k. In dec 2007 it sold at £234. but they are after 265k now. I thought house prices are less now than they were say end of 07?

Houses in almost every part of the country are down on the 2007 figure - sounds like your vendors are being optimistic/unrealistic. Probably hoping someone with more money than sense comes along. Can't blame them for trying I suppose.
In some places, houses are selling at strong prices because of the lack of properties on the market - if this is the case in your area, I suggest you wait till spring where you can be guaranteed a lot of properties will be coming on the market.

Catatonia

wannaberich41 wrote: »

Are house prices higher now than they were in dec 2007? The reason im asking there is another one that is over our budget and looking on that rightmove house sale prices thing. This house in 1999 was sold at 90k. In dec 2007 it sold at £234. but they are after 265k now. I thought house prices are less now than they were say end of 07?

They could have done a lot of work to it, as you don't know the condition when they bought it.

poppysarah

If you take Kirsty and Phil's advice you'll pay asking price.

When people have made cheeky offers on their own they have often been accepted.

The_Drama_Llama

I was recently sent on a negotiating training course for work, during which there was a section about house buying negotiation. The main advice was:

1. Do your research: other sales in the area, other property prices, how long the property has been on sale, any price drops, chat up the EA and try and find out why the vendor is selling, if they've bought and need to move etc, when a building co.'s year end is if it's a new build...

2. Decide on 2 prices: one is your preferred price, the one you'd like to buy at; the other is your maximum price.

3. Make an offer under your preferred price. Leave yourself room to negotiate up to that level. So, for example, if the house is up at 120k and you'd rather pay 100, then start negotiating at about 85k. But be clear that this is a first offer and that you're open to negotiation.

4. Go up in small increments, and as you get closer to your preferred price make those increments smaller. So, after 85, your next offer might be 92, but then the next should be 96, then 98, then 99. Decide whether you're happy to enter the zone between preferred and maximum price.

5. Throughout the process stress any other element that makes you a better bet than other buyers: everything in place, no chain, whatever there is. In this market, even that you exist is a point in your favour!

6. At the moment EA's are desperate to make the sale, and some kind of commission. Make it clear that you're negotiating, not messing around...they're likely (if they're any good...BIG IF!) to work on the seller to co-operate.

7. Be prepared to walk away BUT leave the door open to go back and start the process again.

8. Try not to see it as an adversarial process, but one where both parties are trying to find common ground to make the sale. Easier said than done.

Not sure if that helps anyone...I've been reading here for a while, and what to offer seems to come up quite a bit...

satchmeister

wannaberich41 wrote: »

We went for a second viewing yesterday and got home and was discussing the figure which we would offer. Within half hour of getting back from second veiwing we had a phone call from est agent advising a couple viewed before us and offered full asking price and that house is now sold stc. Typical.

Now on the hunt for another one. Cant find anything at the moment though. I guess more will come on.

Thank you for your advise.

So empty for three YEARS and with one hour two people want to buy it and the offer is FULL asking price. And of course mortgages are not easy to get but the other buyer will be a cash buyer - they always are ...

We offered on one recently and had a similar situation, decided to let the other people have it. This was last Sept ... it is still not even SSTC never mind Sold.

tyllwyd

brit1234 wrote: »

On the sellers support thread on MSE it seems they are having between 15-30% knocked off before they sell.

But bear in mind that the larger reductions are probably in comparison to the original asking price, not the current asking price. The asking price might have come down 20% over a year, but that's not the same thing as marching up and offering 20% off today's asking price and expecting it to be accepted without question.

brit1234

tyllwyd wrote: »

But bear in mind that the larger reductions are probably in comparison to the original asking price, not the current asking price. The asking price might have come down 20% over a year, but that's not the same thing as marching up and offering 20% off today's asking price and expecting it to be accepted without question.

Property Bee in that case would be the best indicator then if they haven't changed agents to how they have or haven't dropped asking prices.