Offering low on already reduced house

tootsmyboots

When we bought this house we live in now, our last offer was rejected. We didnt call it a final offer, it was just a bit more than our first one which we expected to be rejected as first ones usually are. When the EA rang back later to reject it, I just said "ok, that's a shame, we love the house but that's all we are prepared to pay for it given all that it needs doing to it!". I said we would keep looking. EA asked me if I expected the vendor to pay for our home improvements by way of our "low offer". I said no, but that's the amount we would buy it for. The EA knew we had been looking at houses at 50K above the amount we had offered so I think they thought we would make another offer. We didnt.

I just left it and later that day the EA rang to say if the vendor could get some money off the house they wanted to buy would we up our offer slightly. I said no. Next morning they came back and accepted our offer.

So the points I am making to OP in telling that story is - it's ok to let the EA know you like a house, but that you have a maximum that you would buy it for. A vendor can choose to accept or decline your offer, and you have no way of knowing if they will or can. Some people will have priced higher to expect you to go 10% lower, but some will have priced to sell and you cant really know which unless you have really looked hard at comparables and condition. If you stand firm, they may come back to you, they may not. You are not entitled to a certain discount, you may get none, some or a really big one, depending on factors like does the vendor need to move or just want to move. Not all sellers are going to take a big drop if they dont need to move.

Edit: Sorry, I forgot to add, the reason I shared our story in the first place was that this house was originally bought for higher (2007)than we paid for it in 2010. And it had been reduced in price after a while on the market. However the seller had a minumum that they could sell for and we must have been close in the end.

PixieP

Humph!

The EA just called. Offer was rejected again. Apparently it's not close to what they're after. It's only been on the market for a week or so at the new price of £255k (since being at £275K) and they're still in the mindset of getting £245-250k (not what the EA said, but what I'm reading between the lines). He said it was bad timing because in a couple of weeks, if they're not had any offers or a similar set of low offers its probably something they'd consider.

So I didn't offer again, instead I said that we still feel it's worth £235k, but we were willing to pay a bit more because we really like it, but we're not willing to pay over the odds. So I've told him to call us if they change their minds.

Who knows, they might come back in a week or so? Although the EA said he reckons there's someone out there who will pay £250k...and there might be. Someone who hasn't done their homework, or someone who plans to stay for 10+ years and isn't really worried about the resell value in a few years. If me and the BF weren't planning on having kids it'd be a perfect house to live in forever - so I guess there's someone out there who fits that house at that price. But just not us.

So the hunt continues... I told him there was a house we originally discounted at the beginning of our search that we're going to take another look at, so that might help the vendor rethink about our offer.

But at least we know that whatever house we do buy will be lovely. We're not going to buy a house we don't love, so whether it's this one or another one in 3 months time, we'll find the right house at the right price and be happy there. What will be will be. So thanks for all your advice, it's great to hear other people's views/experiences when going through all of this.

doire_2

evansmummy wrote: »

I think Doozergirl is talking complete sense. I'm about to put my house up for sale and if someone was acting uninterested I would be less inclined to sell it to them than someone who was really excited to move into my lovely house.
Everyone expects to-ing and fro-ing until they meet in the middle. As long as you're both happy with a final price no one feels cheated.

What? It depends how much they offer not how big a smile they have!

doire_2

PixieP wrote: »

Humph!

The EA just called. Offer was rejected again. Apparently it's not close to what they're after. It's only been on the market for a week or so at the new price of £255k (since being at £275K) and they're still in the mindset of getting £245-250k (not what the EA said, but what I'm reading between the lines). He said it was bad timing because in a couple of weeks, if they're not had any offers or a similar set of low offers its probably something they'd consider.

So I didn't offer again, instead I said that we still feel it's worth £235k, but we were willing to pay a bit more because we really like it, but we're not willing to pay over the odds. So I've told him to call us if they change their minds.

Who knows, they might come back in a week or so? Although the EA said he reckons there's someone out there who will pay £250k...and there might be. Someone who hasn't done their homework, or someone who plans to stay for 10+ years and isn't really worried about the resell value in a few years. If me and the BF weren't planning on having kids it'd be a perfect house to live in forever - so I guess there's someone out there who fits that house at that price. But just not us.

So the hunt continues... I told him there was a house we originally discounted at the beginning of our search that we're going to take another look at, so that might help the vendor rethink about our offer.

But at least we know that whatever house we do buy will be lovely. We're not going to buy a house we don't love, so whether it's this one or another one in 3 months time, we'll find the right house at the right price and be happy there. What will be will be. So thanks for all your advice, it's great to hear other people's views/experiences when going through all of this.

When making an offer between my first and second offer i wouldn't do it within one day. You make yourself look too keen.

If they aren't prepared to budge then tell the EA that was your final offer, the vendor has another week to think about it and then you are moving on to view other houses you like.

As for the EA saying someone out there will pay the 250k...of course he would say this...its a scare tactic. You have to remember that 90% of EA are lying scum that would do anything to get a sale

Doozergirl

doire wrote: »

What? It depends how much they offer not how big a smile they have!

If you're pretending not to be interested and playing hard to get then you really do run a risk of not being taken seriously and those negotiations may never truly open. The attitude that goes with behaving in a disinterested manner seems to be accompanied by 'I'll let them chase me'.

To be frank, what is acceptable to me will change with whether I can see them completing on the deal. If I felt someone was keen to do a deal and easy to do business with, then I'd see the benefit in selling for a little bit less for an easy life. I've been through this enough times to know that things do run smoothly when people are open, friendly and honest, not hiding or playing games.

If you go into a shop and haggle, or a car dealership you will get further if you appear keen and ready to do business. Not disinterested and looking like you'd rather buy something else anyway. It's the wrong message in my book.

You don't have to beg. I'm still talking about being straight and direct, but I also mean trying to look like you actually mean it!

Doozergirl

doire wrote: »

When making an offer between my first and second offer i wouldn't do it within one day. You make yourself look too keen.

If they aren't prepared to budge then tell the EA that was your final offer, the vendor has another week to think about it and then you are moving on to view other houses you like.

As for the EA saying someone out there will pay the 250k...of course he would say this...its a scare tactic. You have to remember that 90% of EA are lying scum that would do anything to get a sale

Buy a lot of houses do you? Work in the business? Or just deal in other people's anecdotes and spend your time here swearing at other members?

property.advert

People should really learn how to play poker for £5 (and I mean real money, not play money) before they start trying to bluff numbers in the hundreds of thousands.

tootsmyboots

Regards to Pixie P's situation:> I would imagine if the house was originally on for 275 and they have dropped to 255 then they are not prepared to take less than 250 with the stamp duty threshold being where it is. Regardless of "what it is worth", if they have mentally dropped it 25K (to 250K) then that is a large drop in their minds and I can see why they wont entertain your offer.

I cant remember from your original post, do you know why they want to move? Do you know if they intend to upsize/downsize/rent/divorce? These all have some impact as they may not have to move.

The best thing you can do now is wait it out. If you go back with another figure straight away they are going to push you to 250 if you want it as they will expect you to keep coming back. I would keep looking and make sure the agent knows you are still looking. If they get back to you you can say that you are disappointed, but your offer is the highest you can go to. Unless of course you can go higher and that's your call to make.

I will go back and reread your opening post to see if it mentions why they are selling and what they paid for it/what they have done to it etc as these are all useful to know.

Good luck, and if you are meant to have the house you will get it. If you arent, the right one will come along. A little patience goes a long way when house buying and indeed selling.

PixieP

tootsmyboots wrote: »

I can’t remember from your original post, do you know why they want to move? Do you know if they intend to upsize/downsize/rent/divorce? These all have some impact as they may not have to move.

Well the EA showing us round told us that it was due to 'work' - he thought the husband had got a new job and they were relocating. But the EA was kind of vague about it. I'm not sure he really knew 100% (he didn't know a lot to be honest, I opened the door to the boiler and said 'That's new right?' and he was like 'uhh' and I said 'Yes, it was installed in summer 2010' - because I'd read the brochure. Something he'd obviously not done!).

Anyway...they'd just had a baby in Sept, and there's plenty of room for a child (or two), so I think it was probably due to this 'work' thing. So I think they are having to move pretty quickly, although I don't know where this new job is.

They paid £215k for it in Oct 2005 and apparently (according to the duffus of an EA showing us round) only might have...possibly...done up the bathroom. So as far as we know they haven't really done a lot to it, yet are set to make good money from it.

Anyway, we feel we put in a fair offer and won't be going higher - certainly not up to the £250k mark, and the EA knows this. I can totally understand where they're coming from through. It's a hard pill to swallow thinking you'll be getting £275k then having to drop to £255k then being offered £237k. But we've done our homework on the street, plus we know what our money can buy us elsewhere (and by this I literally mean about two roads down - we have a search area the size of a gnats head!). So we'd rather wait and see what happens, or lose this house to someone who doesn't mind paying over the odds (in our mind anyway - but I guess what a home is worth to us might not be the same as what it's worth to someone else). It's a shame though because it was lovely.

tootsmyboots

Well sit tight for a bit then and if the EA gets back to you stick to your guns and suggest they try to get a similar percentage off the house they are buying. In the meantime you can be pretty sure of one thing - the sellers will be discussing your offer and hoping you will up it. I doubt they will have just said to themselves, "no that's too low, lets just forget about it!". If you really like it and it would be the house for you as you say you have a small search area, then maybe it is worth a little more to make you happy (you say it is lovely and in the right area). In the meantime, go and look at everything else in your search area and see how they compare. It will fill in some time while you are waiting and you never know! I dismissed my house from the paper details and yet I live in it now!