How much first offer?

John_Jizzle

Hi probably heard this question a lot but was wondering what to put in my first offer?

The House is worth around 210. They dropped the price to 200 - but its been on sale for a year. I think the most i want to pay is around 190. Where should i start?

rubysmummy_2

If i were you i would start pretty low - maybe 160 (i know cheeky) but you never know what position they are in, they may want to sell it ASAP, it could be an inheritance and they just whatever they can get for it. If its been on for over a year i would definately go in low. Our residential house was up for 120k and we put in an offer of 90, she said no which we were expecting but we negotiated at 105. I cringe when my h2b does it but if he didnt then we would probably would have paid asking price. We have just done it again on a BTL property - it was up for 90k and we put in 70 - they refused but we agreed on 75 - a great bargain. the worse they can say is no.

John_Jizzle

hi thanks for the reply - forgot i'd actually posted

what increment and timescales do you guys reckon i should go up in?

southantrim3

Increment of £10k to start of with but leave it for a month before you go back to them. If it's already been on a year, it's not likely to go in a hurry.

John_Jizzle

a month - i'm gunna have the wife in my ear all that time

bristol_pilot

It depends whether it is more important for you to get the house at a good price or whether it is more important to get the house.

I would soften them up with a low offer like 150, when rejected increase to 160. When rejected....then wait, give it 5 or 6 weeks and just hope that no-one else who is in a position to buy makes an offer. Then (if they haven't called you back by now), make 'final offer' of 165 and stick to it. In todays market this might just work. It helps if the property is not 'unique' in any way - i.e. surrounded by many similar properties, whether for sale or not.

However if you really really want the house you will keep increasing in increments of 10k or so until they accept. But expect to pay not much below asking.

I managed to get 30% off asking price by playing the long game with negotiations over 15 weeks and with a seller in financial distress.

John_Jizzle

bristol_pilot wrote: »

It depends whether it is more important for you to get the house at a good price or whether it is more important to get the house.

I would soften them up with a low offer like 150, when rejected increase to 160. When rejected....then wait, give it 5 or 6 weeks and just hope that no-one else who is in a position to buy makes an offer. Then (if they haven't called you back by now), make 'final offer' of 165 and stick to it. In todays market this might just work. It helps if the property is not 'unique' in any way - i.e. surrounded by many similar properties, whether for sale or not.

However if you really really want the house you will keep increasing in increments of 10k or so until they accept. But expect to pay not much below asking.

I managed to get 30% off asking price by playing the long game with negotiations over 15 weeks and with a seller in financial distress.

Thanks for this. i really want the house but i also dont want to start going crazy (like i do on ebay).

I think 160, then 170. 175, 180, 182.5 final offer 185........ ( i really want it lol)

bristol_pilot

John_Jizzle wrote: »

a month - i'm gunna have the wife in my ear all that time

To secure a good price, the buyer must be willing and prepared to walk away. A spouse who loves a particular property is death to a successful negotiation.

robert2011

Hi B P,
First ask the estate agent the reason for selling, second if the house is between 3-4 years old the seller is probabley in negative equity, great news for you ! . If it is an old house and they have been living in it for over 10 years they will not be desparate to sell. Also ask the agent how long they have lived in the house if it is only 3-4 years you can haggle the price down. Remember though house prices in general could easily drop another 10% in the next few years . So i would get the facts first and then if they have bough recently i would offer £150k if you have plenty money £160k tops