Seller insists on asking price - is that normal?

Gromitt

It can back-fire on the vendor too, like in the following that happened to me:

"I'll offer £105,000"
"Rejected, the vendor is looking for £115,000"
"No, my final offer will be £110,00. Its not worth any more to me."
"Rejected, the vendor is looking for £115,000"
"Ok, well, thanks for you time."
[... 4 weeks later ...]
"The vendor has accepted your offer of £110,000"
"Sorry, I've had an offer accepted on another property, Therefore i'm no longer interested."
[.. Property is still on the market ..]

Itismehonest

scarletjim wrote: »

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.

Is that because the asking price is too high or because you expect to get a deal?
If you think the house is worth the asking price then so, probably, will someone else & they may not mess around.
House sales are almost always a game of chicken on both sides but sometimes someone else moves in & the game is over.
If you want it buy it.

phoebe1989seb

I believe you said in another thread that the house had only just come on the market......if that's the case I'm guessing the vendors (probably the EAs too) think it's early days and a better offer will come along.......if they're not in any hurry to sell they'd maybe rather hold out for this (possibly may never happen, but who knows) higher offer........

ILW

scarletjim wrote: »

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.

Do you think it is overpriced?

DannyboyMidlands

scarletjim wrote: »

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.

Asking price or not you've still increased your offer from 92% to whatever your next one will be. The vendor must think that Christmas has come early.

missile

Depends on where you are, properties near me are going for MORE than asking price.

Better_Days

It also depends on how realistic the asking price in comparison with similar properties.

Have you found out what, as far as possible, like for like properties have sold for (not the asking price) in the last year or so? Is there anything about this property that adds value compared to similar properties? I don't see offering for properties as a percentage reduction, but
1) What the property is worth compared to similar properties
2) What the property is worth to me in my particular circumstances

It could be that the EA has over valued to get the business and the vendor hasn't realised this has happened.

It maybe that the property is competitively priced which is why the vendor won't drop.

It may also be that the vendor thinks his property is worth what it was in 2007 and won't budge. There are a fair proportion of those on RM - if you have property bee you can easily spot them.

Be prepared to walk away if you think the property isn't worth what the vendor wants.

scarletjim

Itismehonest wrote: »

Is that because the asking price is too high or because you expect to get a deal?
If you think the house is worth the asking price then so, probably, will someone else & they may not mess around.
House sales are almost always a game of chicken on both sides but sometimes someone else moves in & the game is over.
If you want it buy it.

It's a good question, and the truthful answer is a bit of both. On the one hand, even if I thought the price was fair, I would normally expect to go in lower and negotiate a slight reduction just because that's what normally happens, that's how the game normally works. But on the other hand, I do think it is over-priced. I'd say market value is about 90-92% (hard to judge, not many similar properties in same area), but in my particular circumstances it really suits me so I originally said in my head I'd go to 95%, but tbh I'd prob go to 97%, but certainly no higher than that (and I'd consider they'd been very greedy at 97% tbh).

But as phoebe1989seb points out, it has only been on the market less than a fortnight so perhaps they are just being firm for the first month or so. But if I buy elsewhere, and they have no similar offers in the next 6 months (like with Gromitt above), then their tactic will have not been a sensible one...

NAR

And you are quite right to offer 92%, as this will potentially cover house value drop over the next 12 months.

But, as you agree, house only just on the market and you are possibly the only bidder so far. Having received your revised offer of 95% the seller probably has grounds for being confident that the asking price will be met. That confidence will obviously erode as the weeks/months go by and it remains unsold.

ILW

NAR wrote: »

And you are quite right to offer 92%, as this will potentially cover house value drop over the next 12 months.

But, as you agree, house only just on the market and you are possibly the only bidder so far. Having received your revised offer of 95% the seller probably has grounds for being confident that the asking price will be met. That confidence will obviously erode as the weeks/months go by and it remains unsold.

Or it may go for asking price tomorrow.

Who can tell?