Making an offer: 18% off asking price reasonable?

CKhalvashi

SG27 wrote: »

What a ridiculous post!!

I agree, and in essence, it depends how desperately the vendors want to sell.

We offered £600k for a property on the market for over a year at £800k in early 2007, just before the bubble burst.

We're also in the middle of purchasing an existing business unit that's had near enough £3m spent on it, just 5 years ago. As the company there stands at this time, the unit's losing £50k/year, so a nicely timed offer of £300k for it grabs me a bargain and gets them out a sinking ship. 90% discount on the asking price just 3 months ago, knowing that we can do a lot more with it!

CK

mrginge

breadlinebetty wrote: »

So you want £70k knocked off a £400k house, because YOU'VE decided that's how much it's worth?:rotfl:

And you have the audacity to say that as the vendors bought it in 2002 for £222k, they should be happy with your offer as they shan't be making a loss.:rotfl:

I guarantee they'll laugh their heads off at your ridiculous offer - it's not far short of a quarter off the asking price what you want to offer:rotfl:

As your offer is so reasonable perhaps as a goodwill measure they'll throw in a new car with the house you should ask them if they'll do that. And ask them if they'll also buy you shopping vouchers to cover the cost of new carpets, paint, emulsion, and a kitchen/bathroom to your own specifications!

I think you're a wind up.

Have you got a link to this property? You can write it out you know!:)

Oh, by the way, have you not considered ofering on all the £330k houses that you've seen in the area, that are just as nice as this £400k one? Hmm?

Looks like someone's been on the meths....

From what the OP has said it sounds like the vendors have been too. If they are really set on that kind of value (and there aren't other factors to justify it) then i would offer at the level you mention, but you'll probably be so far apart that i'd move on to look for other options fairly quickly.

DRP

hi OP.

I find no problem with offering 'low'. :money:

I think the real issue here is how far you are prepared to go (your 'walk away' price), rather than how much to offer in the 1st instance - first offers very rarely get accepted.

You can justify your limit all you want but if the vendor isn't desperate enough to accept, then it is no deal. I think you have leverage by your situation and I would also make any 'final offer' subject to a strict time limit ofa few days or over the weekend - this puts no end of pressure on a vendor to make a decision rather than play the waiting game.

jilljill2891

Hi, we weren't quite in the same price bracket when we bought our house but....it was on the market for £140k and we offered £90k. Slightly cheeky yes, but eventually we got it for £110k, 22% under the original asking price.

I say go for it, you never know! They might want to leave asap, they might think yours is a reasonable offer or you might get an outright no. But if you don't ask, you don't get!

Good luck!

missile

purple101 wrote: »

...We are not that good with negotiating a price on the phone or in person .....
Any other suggestions for our case would be greatly appreciated.

Get your solicitor to negotiate or use an agent to bid on your behalf, e.g. http://thebuyingagents.com/ :beer:

sham63

breadlinebetty wrote: »

So you want £70k knocked off a £400k house, because YOU'VE decided that's how much it's worth?:rotfl:

And you have the audacity to say that as the vendors bought it in 2002 for £222k, they should be happy with your offer as they shan't be making a loss.:rotfl:

I guarantee they'll laugh their heads off at your ridiculous offer - it's not far short of a quarter off the asking price what you want to offer:rotfl:

As your offer is so reasonable perhaps as a goodwill measure they'll throw in a new car with the house you should ask them if they'll do that. And ask them if they'll also buy you shopping vouchers to cover the cost of new carpets, paint, emulsion, and a kitchen/bathroom to your own specifications!

I think you're a wind up.

Have you got a link to this property? You can write it out you know!:)

Oh, by the way, have you not considered ofering on all the £330k houses that you've seen in the area, that are just as nice as this £400k one? Hmm?

As I read this post the first thing that sprang to mind was the scene from 'Airplane' where everyone's queueing up to slap the hysterical woman........

LeafGreen

I can see where breadlinebetty is coming from. If the vendors might accept £330k then I guess they'd be asking more like £350k. If £400k is unrealistic then I expect it will take time rather than a low offer to make reality hit.

Still, if you don't ask, you don't get. The only risk to a very low offer is that the EA don't take you seriously in future. How about waiting the EA to get back to you for feedback then saying you liked the property but felt it was over-priced, pointing out any significant flaws that may make it less than perfect for you personally, as well as in general. Then get them to draw out a figure from you, rather than you putting it to them straight away. That might make it look a bit less cheeky!

Good luck though :-)

squeeks

What are you prepared to pay for the house? - That is what the house is worth to you. If you can get it for less than you are prepared to pay for it, then you have yourself a bargain.

Ignore to a certain extent the asking price, it is indicative only, and normally represents the maximum price you can expect to pay for a property - unless it is offering exceptional value or has exclusive features which multiple people want, which is unlikely in this case.

Try not to emotionally over invest in a house until it is signed and paid for. The worst that happens is you have to look for another house.

Davesnave

breadlinebetty wrote: »

So you want £70k knocked off a £400k house, because YOU'VE decided that's how much it's worth?:rotfl:

That's roughly how it works. The vendor & potential buyer have a figure in mind, so they either agree or compromise if there's to be a deal. No one shows their hand too early.

But as tobyjug says, the time on the market and others' earlier responses will probably have a marked effect at the negotiation stage.

We sold for 18% less than our original price, rather than go into another winter unsold. We decided that selling prices would fall futher in the spring, and we weren't wrong. I doubt if anyone on the outside could have read our thoughts, though!

When we bought again some time later, we paid the full asking price. In that case it was speed of completion that mattered most to the vendor, so they pitched the property at below market value and attracted several potential buyers straight away.

YoungBusinessman

Go for it. I have haggled my way on a £90k place down to £70k....so far. I have said i will wait till the end of year to buy it unless price comes down yet. So i can see me getting it for £65k end of the year.

Fair discount! Dont ask you dont get!