Offers on Houses - is there a normal "below asking price" starting point (in England)

Anon

This may sound a strange question, but I am sure there are people on here who will know. This relates to houses on sale in England.

If a house is on the market and advertised, for the sake of argument, at £200,000, is there a normal expectation from the Eastate Agent (and seller) that it will actually fetch that or is the wriggle room built in to the price? For example, has the estate agent increased the price so that they expecting offers to start at, say 10% below this, then negotiate to get nearer the asking price (maybe 5% below)?

I realise this is all dependent on market forces, interest in the property etc, but was wondering if I was interested in a property, how much do you make your opening offer for? Once you have revealed your hand it is difficult to get it for less and any money saved is better in your pocket than their's, therefore I wondered if the asking price is the price it is expected to fetch, or if the Estate Agent pricing standard practice includes an allowance for negotiations to take place.

Many thanks

Anon

A_Nice_Englishman

A good starting point is the price paid for similar properties recently. Have a look at a website like http://www.nethouseprices.com/

There is a 3 month (?) delay before prices appear though so make allowance for that if the market is moving quickly.

Anon

Thank you A Nice Englishman - we had been looking at that site but unfortunately it doesn't let you know how much the houses were advertised for (and none of this type/style have sold recently, though mine was a general question really).

Many thanks

Anon

abaxas

Asking price means nothing.

Just offer that you beleive that property to be worth. Ie as said before look at nethouseprices etc.

stratford_2

All really depends on your market - how many other similar properties that are available, in similar areas, how many buyers there are, how long the property has been on the market and how desperate the vendor needs to sell. You may be able to get a 'discount' if you're in a strong position to proceed (ie. cash or first time buyer) compared with other buyers.As for percentages, I can only suggest you give a location and perhaps people here who know the market in that area could give you specific advice. I know that in certain streets in my area, for example, property can sell very quickly and often at or above the asking price. In other parts of the country, if there's a glut in property this might not be the case.

richt71

I have a wealthy business contact that makes his living from buying properties from people that need a quick cash sale. His norm is to offer 15% below market. He states this upfront when people call him - he advertises his offer to buy homes. So I guess there's no norm or acceptable offer below list just what the seller is willing to accept!

benood

Asking prices vary completely with what the EA thinks will sell the house for the most in the end, and what he needed to say to get the seller to choose him over the competition.

For instance if a house is likely to attract a lot of interest and is relatively unique the EA might set the price low in order to create a buzz and aim to end up taking sealed bids or get into a bidding war, alternatively if the house is unusual and will only suit a limited number of people they might set the price really high in the knowledge that it's a matter of waiting for the right buyer to come along and they will pay the high price - if the sellers are keen to sell you might be able to offer a lot under the asking price in the end and find you're accepted.

A nice englishman is right though - recent selling prices of similar houses in the area will help you gauge what you ought to be paying. There's no unwritten rule saying the vendor expects you to offer 10% under asking and ultimately compromise on 5%.

Xbigman

Its all down to area. A friend was told local houses were selling for 93% of the asking price, so he tried to offer that and got turned down every time.
You can't go by these figures.

Also, if a house has been on the market for a while then go in low. If its been on the market five minutes and there is a queue to view it then go in much higher. In between, play it as you see it.
Regards



X

Anon

Many thanks to all responses - all sound logic. I didn't know if there was an agreed practice for estate agents but the above has explained it thank you.

Anon