Cheeky Low Offers - do they work?

Jo_anne_2

I think it depends also on your position as a buyer (FTB, cash buyer, length of chain, etc) and also on the area you are buying in. In the area where I bought a house last year as a BTL, house sales were going through at 5% below the asking price.

BettiePage

If you're not embarrassed by your initial offer, it is too high. Most properties sell for something like 92/93% of asking prices anyway.

fivemice

We are FTB. Area isn't selling well as it was going to be made into an asylum seeker base, but not anymore. There are no amenities in the village, although there is a planning application in for 200 homes (mostly live/work) and a couple of 'community areas'.

Carter_2

To the OP.
I think it also depends if they have reduced the price a number of times already. If the price was originally £260k for example, then reduced to £230k IMO they wont accept £200k very readily. Alternatively, if it has been on the market for a while at £230k without reducing it, they may be the type that wont accept a penny less than £225k for example.

I think it would be best if you got some more information from the EA who is selling it before viewing then try to guage how keen they are to sell when you go viewing. If it was me as the seller, I wouldnt accept £30k off the price unless absolutely desperate and would be looking to get more from you.

Woby_Tide

BettiePage wrote:

If you're not embarrassed by your initial offer, it is too high. Most properties sell for something like 92/93% of asking prices anyway.

I'd say it's higher than that, in the sub £250k market I'd guess it's way closer to 96-97% of asking price. In the higher markets where prices start to be plucked out of the air there's always more room for negotiation.

irnbru_2

fivemice wrote:

The guy seems to need a quick sale as he can't afford the mortgage.

What did he buy it for?

fivemice

irnbru - he got divorced and can't afford the mortgage on his own.

Doozergirl

Sounds like a ripe opportunity to make a low offer, fivemice. Haggle hard!

irnbru_2

fivemice wrote:

irnbru - he got divorced and can't afford the mortgage on his own.

Given his circumstances i wouldn't pay 130K.

6 months, 3 viewings and no offers (- assuming you've been given factual information).

I agree with PabloNeruda, start at 120K and upto stamp duty level of 125K. After that, it's the heart ruling the head.

fivemice

Thanks all... we'll give it a go.
I will practise offering £120K in the mirror so that I don't go too red when I offer it for real If we could get it for £125k I'd be over the moon.