Is an offer of 20% off asking price too cheeky?

Loopgames

There are two factors to consider when you buy a property

1) Value of property
2) Position of vendor

Only you can decide what the value of the property is worth TO YOU (ignore what the stats tell you this is for you to live or invest in).

If the value of property is more than what you can afford (and the value itself can be debated)....then there is no problem offering the lower figure because of #2 above. The position of the vendor may be such that they want to sell fast and will be willing to drop the price for the price you offer.

You will not know the position of the vendor so you should just go for it and see what takes place. But once you do put in an offer - and I hope it's for £250k then wait....don't give away that you can up it to £280k. Give it 2 weeks then call again...or just view other properties while you are waiting (don't forget to view some with the same agent...to show you are still looking).

tommie1shunt

I did that, showed the EA 2 comparisons, next door had sold for my offer price 6 months ago and one further down the road had sold even cheaper. EA agreed property was overpriced but the vendor did not budge. Still on the market, and I will confidently predict it will stay on the market for some time.

hcb42

the fact is, even if over priced, if the vendors situation means they cannot move, then they will not accept an offer. So it might not be as mad as it looks

it-is-only-me

Thanks for the input guys, I will offer the 250,000 I think and see from there. They are wanting to downsize as it now just a mother mid twenties son living there. She said there is no mortgage so no neg equity or anything. Fingers crossed.

poppysarah

I'm toying with the idea of buying one near me. It's on at 105k so 20% off would be 83k.
Probably a much better price for it.

Not been on the market long though so am going to bide my time I think.

(Although I am still waiting for the EPC)

BigAlC

Well OP if it makes you feel better, we've just had our offer of just under 18% off asking price rejected.

I'm not in a rush to get back to them, so will consider my position and then probably ring after the weekend with an slightly increased offer and get some feedback on what they realistically want for it. (priced to close to stamp duty limit to warrent asking price), I've enough movement for 3 offers, but if they don't take me up, then their loss to be honest, as it's been sitting around vacant since 2010.

Good luck on your reply.

Hemel_Saint

it-is-only-me wrote: »

Thanks for the input guys, I will offer the 250,000 I think and see from there. They are wanting to downsize as it now just a mother mid twenties son living there. She said there is no mortgage so no neg equity or anything. Fingers crossed.

Be interested how you get on. can you let us know.

My son has also just put a heavily reduced offer down on a flat.
he is in a lucky position as he has found two flats he likes, so is able to move onto the next one if this one does not work out...

He felt really guilty about putting in a low offer, but I keep reminding him its a negotiation game. and its HIS cash, don't waste it!

Definitely go low, be confident in your bid, not apologetic.

the worse that can happen, they may say "no"...
if they do, take a break and come back later with your slightly increased offer.

Dont be worried about making a number of slightly increased offers!

Keep on negotiating till you meet somewhere in the middle, always remembering to only... PAY WHAT YOU THINK THE PROPERTY IS ACTUALLY WORTH.

If they wont budge, move on!

Good luck, and let us know how you get on...

bluedrop

I was just about to post a similar thread. I've seen a house that we want to buy. Asking 335k. We knew it was overpriced, but went to see it - in the hope of finding something that justifies the price. It was typical property for that area. Nothing special. Just that it was neat and tidy.

Similar properties in that area are on for 300k asking. Some slightly less too.

I was wondering of I should offer 270k and go on upto £ 290k. That's the max I think the property is worth. (nationwide, Halifax indices and other valuations support my view)

So, thats 20% below asking price!

Loopgames

It's good to read that buyers are feeling less afraid to put their offers instead of letting it go.

I've been observing prices on almost a daily basis in ilford area and there are properties coming on the market less than £300k...there is currently a 3bdroom in need of complete rennovation for under £225k but I know one has been sold for £213k which in a similar condition and the owners are having trouble shifting it after doing it up..they tried to sell it originally for £285k then brought it down to £270k. They prob. need at least £250k to break even (time and labour).

So I reckon that asking prices are currently not realistic.

Here's the property I was referring to on the market for under £225k

http://www.rightmove.co.uk/property-for-sale/property-37414610.html

Needs at least £20k imo...could be more ..I would offer £180k if I was in position to buy. But not more than £190/195k.

carslet

when i was looking i was only putting in 20% and 30% offers in of the asking price, i must have put in about 20 offers on different houses, all at first said no, but then 3 came back to me, i refused to up my offer, and in the end i got it, if they had said no i would still be looking,

houses are over priced, there will always be desperate sellers, just wait , even though i bought i still expect houses to fall by another 20%