advice on house price negotiations

James1715

Would appreciate some advice as what others would do in same situation, as this is first time I have been involved in house buying negotiations.

Viewed house at the weekend which had been on the market just under a month. Originally priced at 265k, but sellers reduced to 249,950 around a week ago as they found a property they like and want to move.

We liked it very much, similar style and age to other properties we had viewed in the area so decided to offer without a second viewing. The carpet was trashed and a few of the rooms need modernising, nothing 5k or so woudnt sort out. We waited for the agent to call us with the usual follow up call, and made an offer of 238k.

During the offer submission the agent wanted to know what our deposit was. I advised I wasnt willing to disclose this (for fear of them screwing us), but would be able to produce an agreement in principle for whatever the amount of the offer I'm making is. Deposit is around 30%, never sure if disclosing these things are a strength or a weakness when negotiating.

Offer of 238k came back flatly refused, saying they wanted closer to the asking price. I made a final offer of 243k, the agent advised they thought offer would need to be 'much closer'. I said 243k was final and if they could put this to the vendor I would leave it with them for a week, and beyond this we would look to other properties on our shortlist. These are within budget and no chain. We are first time buyers and can move when ready, I hoped this might swing things.

The agent tried to ask if my mortgage was the reason why I woudlnt increase my offer, I said no, it was just how much I was willing to pay. The neighbouring house sold for 250k last November but is in better condition, doesnt need new carpets etc. so I dont think this one warrants full asking price.

Not heard anything back from the final offer. Its not a week yet, but I would be keen to know if I handled negotiations wrong here, what should / shouldnt have said. I thought the offer was reasonable and anything learned would help us in future viewings...

Thanks

IHateDida

Always give a time frame in which you expect an answer. I have learnt this after waiting for EA's to get back to me (and who were probably all trying to get higher offers before getting back to me!). I now say that I want an answer by the end of the day, or within 24 hours if I make an offer later in the day.

I would phone the EA and say that your offer stands only until say 5pm as you have other properties in the frame to consider.

Good luck - sounds like EA are playing the waiting game with you to see how long you will wait! Don't let them do it, put a time restriction on them otherwise they will make you wait longer in the hope that someone meanwhile will come along with a higher offer than yours.

James1715

Thanks. This is my fault really as I did say I'd leave the offer on the table for a week. I just assumed as the offer was 'way off' what the agent wanted that additional time might be the best chance of us getting the property if the vendors were keen to move. I should have just given 1 or 2 days.

cattie

Giving a week is far better than just giving 1 or 2 days. Just a couple of days might not be suitable for some vendors to sit and work out whether a lower offer than they were hoping for is going to be viable for them, or if it's something they will consider. Give vendors too short a period and no time to think and a low offer can be dismissed out of hand. Giving them time might bring a favourable response.

Personally, I never consider carpets a bargaining tool. They are such a personal thing and the majority of people want to fit to their own taste anyway. You should see the state of the carpets in the property I'm buying! Even my surveyor mentioned the state of them and how mismatched they were in my homebuyers report. Decoration is another thing I don't think worth negotiating on. Even a newly decorated place might have wallpaper and colours enough to give you nightmares, so again it's all personal taste and easily remedied.

When negotiating, focus on the major things that need doing, such as new kitchen, bathroom, roof, rewiring, boiler etc.

If there are other houses you are interested in, then just go view them and if you like one enough, put an offer on that instead.

IHateDida

cattie wrote: »

Giving a week is far better than just giving 1 or 2 days. Just a couple of days might not be suitable for some vendors to sit and work out whether a lower offer than they were hoping for is going to be viable for them, or if it's something they will consider. Give vendors too short a period and no time to think and a low offer can be dismissed out of hand. Giving them time might bring a favourable response.
.

I would say yes to this as long as you know that there hasn't been much interest/other viewings. It backfired on me when I let the vendor have the weekend to make their decision. Instead, the EA used the time to arrange other viewings, collect as many offers as they could and then get us all into a bidding war.

Had I gave a time frame of within 24 hours, I know my offer would have been accepted as the accepted price was only a teeny bit above what I had offered. I was gutted to have lost the house but even more annoyed with myself for letting the EA have several days over which to continue with viewings and encourage further offers.

I think most people have an idea of what they will accept and most will happily wait to see if they can get better offers given the opportunity. I know I would!

Happy-Days_3

Did you do the right thing? It depends. If that is the only house for you and it is the best thing ever. Then don't muck around over the difference, just up your offer and get it. If on the other hand it is nice, you like it, but not the end of the world if you don't get it, then absoultely spot on tactics in my opinion.


Don't call them back now, just start looking elsewhere. 1 of 2 things will happen. 1) Someone else offers more and you lose the house. 2) at some point in the next week, month, couple of months, you will get a call from the EA asking if you have reconsidered. And if you do, that is almost certainly the vendor reconsidering your offer and hoping it is still on the table. Depends on what the EA says as to how you play it after that. Maybe stick to your guns on £243k, maybe say fine, £244k if it is agreed today and off the market tomorrow.

But, whatever happens, good luck with it and like your style!

Scabarella

Personally I would phone the EA and say that you have seen another house that you like (even if you haven't find a similar property on rightmove as the chances are the EA will ask where it is, make sure it is with a different EA than who you are negotiating with!) and that due to you submitting an offer, out of politeness you are wondering what is happening before you submit an offer on this other (fake) house!

Call their bluff as they wont want to lose a potential sale, if they think you are going to go elsewhere they may push your offer a little more!

Hope this helps, good luck!