Seller insists on asking price - is that normal?

scarletjim

Trying to buy a property, have made 2 offers, for 92% and 95% of asking price, but EA says seller is insistant that they won't go below asking price, is that normal? Don't people normally work out what they expect to get, then add a bit more for what they want to get, then a bit more for negotiating room? I'm confused.

ILW

It's up the the seller what they are prepared to accept.

princeofpounds

It's not usual but it's not abnormal.

Many people hate 'games' around asking prices and just say 'this is what I want, take or leave it'.

More people cannot sell for less than a given figure because it will not permit them enough equity to do whatever it is they want to do afterwards. Or on a more basic level it might mean it doesn't cover the mortgage, so the bank won't permit a sale.

Wyndham

A house is worth what someone will pay for it. The seller may insist on the full price, that is their right, but if you don't think it's worth that then don't offer it and walk away.

dzug1

Seller may not actually want to sell but being forced to do so by estranged spouse.

Might not be a sustainable position long term but certainly is in the short.

And there are people who regard anyone who wants to negotiate as a 'timewaster'.

DannyboyMidlands

Considering that you keep upping your offer the vendor is quite right to hold out.

Why accept 95% when you'll be back in a few days throwing down 98%?

scarletjim

Yes of course the seller can do as they wish, I wasn't questioning their rights or morals, I just thought that standard practice was to price slightly above what you expect, then settle at perhaps 95%.

The argument 'why should they accept if I keep increasing my offers' doesn't really stack up against the stats - by that logic, all sellers should hold out and all houses would sell at asking price - and we all know that doesn't happen. Anyway I've only made 2 offers, might make just one more but if they're not budging at all after that then I'll walk away and they may well struggle to receive such an offer for a while, so I don't think that tactic of just 'wait and he'll pay the asking price in a few days' is a sensible one.

I was just curious to learn if this was abnormal - perhaps not as much so as I thought. Thanks.

DannyboyMidlands

scarletjim wrote: »

by that logic, all sellers should hold out and all houses would sell at asking price

Not unless all purchasers continue to offer up to asking price. They don't. At some point they play hardball and say:

Purchaser: This is my max offer
EA: They really are looking for very close to asking
Purchaser: This is close to asking and my max offer
EA: Fair enough, they accept

DannyboyMidlands

scarletjim wrote: »

Anyway I've only made 2 offers, might make just one more but if they're not budging at all after that then I'll walk away and they may well struggle to receive such an offer for a while, so I don't think that tactic of just 'wait and he'll pay the asking price in a few days' is a sensible one.

It's working like a charm so far.

amonaghan

might be worth looking at the agent's fees, it may be that 95% is below a commission threshold but 100% brings them onto the next level

scarletjim

DannyboyMidlands wrote: »

It's working like a charm so far.

How do you work that out? I'm definitely not paying the asking price, so I'd go away and think that through again if I were you.