How low can you offer without INSULTING the seller?

Arjy

Seen a house on the market for 525,000, got a mortgage in place in principle, but have a decent deposit and credit score for it to be okay. Houses in here in old Scotland are cheaper than down South so you get alot more for you buck.

The house i've seen needs major work on it, the bathrooms are old and worn, and the home in general isn't new spec or amazes you. It's a new build though. We've seen homes smaller, but are lovely inside, this home is larger but a wreck inside. I'm talking new carpets, new floors, new bathrooms, major work on the kitchen, etc

The owner has already reduced it apparently to 525,000, and is desperate to sell. However, the house is never worth that much, looking at similar properties in the area. He wouldn't be the greatest poker player ever, as he pretty much pleaded with us to take it, as he needs the money. The agent has also rang me a few times saying the owner is desperate (he would though say that).

I'd like to make an offer on the house, hoping to maybe get it cheap. But i'd only want it cheap, due to so much interior work needed on it. But at the same time, i'm quite niave as to what sort of non insulting offer i should make.

While i'm aware it's okay to make insulting offers in todays market, i'd like some advice as to how to go about it. Seems quite standard these days to knock 10% off the price, but to be honest i think that 10% off would be the real price of the house.

If i was to knock 100,000 of the price, it would be an insult, but i'm thinking of doing just that as my starting ball area.

What sorts of offers have you guys experienced, had, accepted, rejected, etc? Any tactical manouvers you can share with a newbie about going about the insulting offer.

grimsalve

Arjy wrote: »

While i'm aware it's okay to make insulting offers in todays market, i'd like some advice as to how to go about it. Seems quite standard these days to knock 10% off the price, but to be honest i think that 10% off would be the real price of the house.

so you think it's worth around 475k?

Arjy wrote: »

If i was to knock 100,000 of the price, it would be an insult, but i'm thinking of doing just that as my starting ball area.

but you're thinking of offering £425k? :undecided

A house is only worth what someone is willing to pay for it. If you think the house needs a lot of work and you're not that bothered about buying it then put in a really low offer and then don't be disappointed if it's rejected. If you like the house and want to buy it then put in a reasonable offer.

anselld

The asking price is irrelevant.

Work out what you think it is worth in its current state. Explain the logic with the offer and why you think it is a fair offer.

Don't convince yourself it is an insult or that is how it will come across. Convince yourself it is a fair offer (perhaps with some negotiating margin)

lucylucky

Arjy wrote: »

Seen a house on the market for 525,000, got a mortgage in place in principle, but have a decent deposit and credit score for it to be okay. Houses in here in old Scotland are cheaper than down South so you get alot more for you buck.
Where in Scotland?- that is a generalisation that does not mean much.

The house i've seen needs major work on it, the bathrooms are old and worn, and the home in general isn't new spec or amazes you. It's a new build though. It's a new build but needs a lot of work. Not sure I understand. Is it a crap new build? We've seen homes smaller, but are lovely inside, this home is larger but a wreck inside. I'm talking new carpets, new floors, new bathrooms, major work on the kitchen, etc Has potential then

The owner has already reduced it apparently to 525,000, and is desperate to sell. However, the house is never worth that much, it is worth what someone is willing to pay looking at similar properties in the area. He wouldn't be the greatest poker player ever, as he pretty much pleaded with us to take it, as he needs the money. The agent has also rang me a few times saying the owner is desperate (he would though say that). If the owner is desperate start low and meet him somewhere higher.

I'd like to make an offer on the house, hoping to maybe get it cheap. But i'd only want it cheap, due to so much interior work needed on it. But at the same time, i'm quite niave as to what sort of non insulting offer i should make. How much do you want to spend on it?

While i'm aware it's okay to make insulting offers in todays market, i'd like some advice as to how to go about it. Seems quite standard these days to knock 10% off the price, but to be honest i think that 10% off would be the real price of the house. Why not offer that then or are you after a bargain?

If i was to knock 100,000 of the price, it would be an insult, but i'm thinking of doing just that as my starting ball area. Is £100,000 less the equivalent for similar properties in the area?

What sorts of offers have you guys experienced, had, accepted, rejected, etc? Any tactical manouvers you can share with a newbie about going about the insulting offer.

I have a neighbour who decided they wanted £400k for their property.

They were offered £395 and said no.

Eventually sold for £300k

You just never know.....

roger196

Don't worry about "insulting" the seller. This is a business transaction not a personal one.
I usually say something to the agent along the lines of "would the the seller be interested in an offer about £415k" or whatever you feel the property is worth to you. See what the response is.
Do not feel pressurised into offering more than you want to pay just because the seller is allegedly bringing his personal feelings into the transaction.

satchmeister

Arjy wrote: »

Seen a house on the market for 525,000, got a mortgage in place in principle, but have a decent deposit and credit score for it to be okay. Houses in here in old Scotland are cheaper than down South so you get alot more for you buck.

The house i've seen needs major work on it, the bathrooms are old and worn, and the home in general isn't new spec or amazes you. It's a new build though. We've seen homes smaller, but are lovely inside, this home is larger but a wreck inside. I'm talking new carpets, new floors, new bathrooms, major work on the kitchen, etc

The owner has already reduced it apparently to 525,000, and is desperate to sell. However, the house is never worth that much, looking at similar properties in the area. He wouldn't be the greatest poker player ever, as he pretty much pleaded with us to take it, as he needs the money. The agent has also rang me a few times saying the owner is desperate (he would though say that).

I'd like to make an offer on the house, hoping to maybe get it cheap. But i'd only want it cheap, due to so much interior work needed on it. But at the same time, i'm quite niave as to what sort of non insulting offer i should make.

While i'm aware it's okay to make insulting offers in todays market, i'd like some advice as to how to go about it. Seems quite standard these days to knock 10% off the price, but to be honest i think that 10% off would be the real price of the house.

If i was to knock 100,000 of the price, it would be an insult, but i'm thinking of doing just that as my starting ball area.

What sorts of offers have you guys experienced, had, accepted, rejected, etc? Any tactical manouvers you can share with a newbie about going about the insulting offer.

He is insulting you, you're just the mug punter good for 525k. Offer what you think it is worth, if it is worth more then someone else will pay. Doesn't have people queuing up to make offers does he? Why is 100k off an insult? how many offers does he have?

myhouse_2

You think the asking price is excessive - were you insulted by their asking price? Probably not. Just research the area, consider the costs involved in buying and doing up the house. Then make an offer explaining gently the reasons. After you've bought the house you won't care about whether they were offended or not, but you might repent at leisure if you pay more than you think it's worth.
Just be professional throughout the whole process and if you don't get the house be prepared to walk away (or wait patiently)

missile

On another post you said

Arjy wrote: »

My partner, and i, have been looking at a few houses ... we have a healthy deposit, in excess of £100k, and with an income of around £50k (Self employed).
.

I find it very hard to believe you have a mortgage in principle for circa £325,000 on your income. Do you think you can afford the repayments?

Arjy

missile wrote: »

On another post you said

I find it very hard to believe you have a mortgage in principle for circa £325,000 on your income. Do you think you can afford the repayments?

Posted that last year. Have substantially increased my deposit, as well bringing my family on board with the mortgage. So you can relax with the detective work, i mean how sad are you that instead of helping and offering advice you're fist inclination would be to do a historical search of my posts. And you know what i've joined that sadness, cos checking on you, shows you do this type of detective work quite a bit, always thinking every poster is on the wind up. Relax mate.

Anyways ... i'll keep you all informed how i get on, making another viewing tomorrow.

Orpheo

If the vendor isn't "insulted" then your offer is too high.

asharon

You can always go up with an offer but they do tend to get insulted when you go down.