Offering low on already reduced house

roboticpink

Anyone have any experience of offering low on a house that's already been reduced?

We're FTBs and we like a house we've seen that has already been dropped in price by £12k... it's been on the market since early August, and they dropped the price when they changed estate agents in Autumn, and again in January.

Should we still start very low and work up? Should we still hope to get it for 90% or so of its asking price as I have read on these boards, as it's been reduced by about 8% already?

I'm not sure it was ever worth its full asking price at the beginning. In addition the house needs a lot of work (including but not limited to routing in wires and pipes, removing mobility aids from elderly resident and redecorating and remodelling the kitchen as it's a rather weird layout). We think we'd need about £10,000-£20,000 worth of work on the house (depending how much we did ourselves).

I would post a link but I don't want the estate agent or vendor knowing we are umming and ahhing as we have already made one low offer and have been told the vendor is unlikely to accept... as it's our first time, I suppose I just want to know how realistic we are being.

Any help gratefully received... Thanks!

WelshNic

What's the asking price and what did you offer?

Mallotum_X

Offer what you think its worth, but if they dont want to drop the price then they dont have to.

metaldud

Just go for it thats what i did and managed to get the offer accepted.

It seems that most propertys nowdays are priced to take lower offers anyway. Theres not much you can loose other than the estate agent saying they would like you to up the offer.

Phunky

We are also FTBs and have just had our fair first and final offer refused, although I think i've shot myself in the foot by putting an offering place before waiting for a to some questions about a previous survey that was shared with us.

The house was put up in July'10 for £137k and was then reduced in Oct to £129k, someone took it off the market at the end of Jan but backed out last week and it went back up for £129k again. So after looking into the area and taking into consideration the work they have done to it I put in an offer for £120,950 (£50 less than they bought it in 2007) this to me was a fair offer as the work done to it is cosmetic and there was quite a few things noted in the previous buyers survey (Possible damp, Woodworm, Roof probs).

Go with the offer you want, but make sure you don't allow the seller or EA to know how much you want it. I guess I came across to keen and there now going to see if we jump straight up again, but i'm not going to now.

roboticpink

Thanks guys - it went on at £170k, reduced in Oct to £165k with a new agent and now on at £158k but we think this is unrealistic still. We've gone in at £140k (88% of asking price so you don't have to use a calculator...) due to the amount of work we think it needs - are we mad?

Been very coy with estate agent about whether or not we want it -not heard back from them yet so hopefully vendor is tempted... just have to remain cool and not panic now :cool:

The_Drama_Llama

You can always negotiate upwards until you both agree a price.

A good rule of thumb is to have 2 numbers in mind: your 'ideal' price and your maximum price. Make your first offer below your ideal and go up in small increments. Don't go above your maximum price (if you do, then it wasn't your maximum!).

Good luck!

happy_2008

Be good to update us on the situation.

roboticpink

happy_2008 wrote: »

Be good to update us on the situation.

I'll keep you all posted I am SO EXCITED.

daisymay2008

we offered 153 on a property up for 170 (overpriced on purpose as divorcee doesn't want to sell)

they want 155, out of principle i don't want to pay 155 a) because the bloke is an ar**hole and b) needs new kitchen/bathroom and all walls skimming/painting and new carpet throuhout....

however it's just want we want area wise and has 3 bedrooms and garage in quiet cul-de-sac so ultimately we may have to bite the bullet and pay, however if they say no to 153 i'll wait 2-3 days then go up to 154 then see....

on the other hand i've booked a viewing for thursday on another property on the estate behind (still excellent location) which is vacant, it was on for 185 (very overpriced with connells) and within a matter of 2-3 months it's been dropped to 174 then 169...

our limit is 160 but if could get that for 155 then i will feel like we've got a right bargain....time will tell

Doozergirl

I'm going to rant now. I'ts not aimed at anyone in particular but I have read too much over the weekend by buyers who haven't done enough homework to build an idea of what a property is worth and think that this forum is telling them that they should only pay 90 or 92% of an asking price of any house on the market, regardless. When we did we start telling people this and what happened to common sense?!

And I shall tell you as a vendor that it drives me insane when people don't show themselves as keen! Why do people think it's a good thing to look disinterested? If you look disinterested, I'm disinterested in you and somewhere someone is missing a potential sale because a vendor or an agent miss the buying signals.

I've seen a house myself, I really like it. I've told the agent that. I've also told the agent that when I am in the position that I will consider making an offer. I haven't sold my soul by doing that.

Frankly, agents don't really care how much you pay, they want you and the vendor to meet somewhere. So if the vendor has an idea that people like their house, they start thinking about what they might accept when that offer comes. And the agent can see a handle so they will start communicating with you as a serious buyer. Maybe not even of that particular house, but a serious buyer. Talk straight to them. Give reasons for your offer, but please don't pretend that you don't like a house. If a vendor thinks you're in love with the house but that actually, you've given reasoned argument as to why you think it is worth less than their asking price, I think they are bound to think a bit harder about your offer. If someone who really loves the house is only prepared to pay so much, then are we really going to find a better offer than this? It certainly feels less desultory than a low offer than someone who came and gave the impression of not really caring. You'd think that they're just chucking in low offers all over the place.

I hate first and final offers; they don't give anyone any leeway for negotiation. Even if you final offer is low, I'd start lower simply to get the vendor hooked on the idea. Otherwise, what you get is a flat 'no' reaction from the vendor and then they get nothing back from you so they forget. It is a game of cat and mouse; and a good agent will work a vendor just as hard as they might work you to go higher. You need to give them a chance to see that you are serious and start working your side of the deal for you - which I can assure you they will; they work for themselves, not for vendors!

And I've seen people on here say 'why hasn't the agent got back to me?' sometimes when they've actually been prepared to offer more, and it's because the agent thinks there's no point chasing someone who clearly isn't interested. Leave looking and acting disinterested to the people who genuinely are.