What's the offer 'Norm' these days

ample_samples_1980

Is it still usual to go in about 20% under asking price these days or has this changed now due to the slight rises in some areas??

For example 4 Bed Detached, up for £239,990 house.co.uk says it has been on the market since Jan 2011 (although it shows no change in price, I don't know if that is right, as I checked a friends property and I KNOW she has dropped it twice and house.co.uk although had the right time it went up for sale, and correct current price, said it hadn't had a price change) - it is not on property snake and I don't have firefox so no property Bee installed so I don't know if I can check anywhere else for price changes?? Purchased 2002 for £145k (if that makes a difference) - Price is comparitive in the area, are a few other 4 bed detached up for between £200-£250k price all in the same village.

What should the opening offer be somewhere in the region of? 20% off the asking price is £191992 which is going to be laughed off the phone, is it best to still go in low and work up or go in a bit more reasonable say £205k

We don't want to pay more than £215k TOPS and will happily walk away if they won't get to that figure - were in rented and in no rush to move, but obvioulsy in a good position to move as we have no chain.

I do wonder if the reason it has been on the market so long though is due to their unwillingness to budge on price as it is a nice area and a good sized property so I would of thought it should of been snapped up by now if they were willing to take a lower offer!

StuC75

You offer what you would be happy to pay.. there is no hard & fast rule of what to go in at. Since do not know how it has been priced at, and by your own admission its in line with what it on the market in the village. But what have they sold at in the village?

A smaller market can make it difficult to gauge local conditions.. A limited supply of properties for sale, allows the vendor to hold out for the 'right buyer' at the 'right price'.. They may be happy to wait it out and not need to jump at the first cheeky offer..

If 215 is your limit then what is wrong with you going for the houses that are in that price range? if you are afraid of offending..

Definitely give it a try, and don't feel offended with a No..

LADYXXMACBETH

Our house is on for 115k and we are looking for about 105k so about 10% I wouldn't take less than 10% unless it was a cash buyer. I think most people think about 10% less.

ample_samples_1980

Yes I understand you pay what you are happy to pay but surely you don't start in at what you are 'willing' to pay as vendors are usually told that folk will make more than 1 offer.

There is nothing wrong with looking at ones for £215k, we have also been looking at those, but that is not our limit overall, just our limit we feel we want to pay for THIS house as it needs work doing (bathroom, kitchen, full redecoration) which we will obviously have to cover the cost off once moved in, where as for example the 'new builds' (about 8 yrs old) down a few streets are £230k and totally modernised and need no work doing baring a lick of paint so we would pay pretty much the asking price for that.

Saying that though, you are right, they can only say no, and I certainly would not be offended!!

Thanks for your comments.

highguyuk

I'd be offering £200k, then £210k, then final offer of £215k.

ample_samples_1980

LADYXXMACBETH wrote: »

Our house is on for 115k and we are looking for about 105k so about 10% I wouldn't take less than 10% unless it was a cash buyer. I think most people think about 10% less.

Thanks for the information.

It's good to get answers from people with their house on the market who can say if they do have it up at a set price with a view to getting less. I know all vendors are different though but it's good to gauge opinion!!

Thanks again

ample_samples_1980

highguyuk wrote: »

I'd be offering £200k, then £210k, then final offer of £215k.

Excellent - thanks for your advice, that was something I was thinking of doing....3 offers max, final offer WILL be the final offer lol.

Road_Hog

ample_samples_1980 wrote: »

Is it still usual to go in about 20% under asking price these days or has this changed now due to the slight rises in some areas??

What should the opening offer be somewhere in the region of? 20% off the asking price

I'd be quite offended at a cheeky offer of 20% off and I'd tell the EA not to pass any more offers on to me from said 'buyer'.

It's a seller's market at the moment and that sort of offer would just start ringing alarm bells. I'd be waiting for more negotiation when the survey came through and then a final cheeky drop in price just before exchange.

Obviously everyone is different, but I think 20% off the asking price is too much. £50K off a £239K price is a lot of money.

ample_samples_1980

Thanks for your input Road_Hog

That is why I was asking the question though - as I pointed out 20% less takes it to under 200k which I think is far to low anyway, and I don't think I would be comfortable offering that much. This was why I was asking what the 'Norm' was for for what to start at as I have no clue, and I don't think it is a Buyers Market yet in our area as properties are staying on the markey for long periods of time (like this one will be 3 years in Jan) and the 2 others we are looking at are just over 1 yr and nearly 2 years. It is very very comon round here for properties to be on for a long time, or to be dramatically reduced before they sell. A house on the next road from us, exact same style we are renting, was up for £210k, I personally think £190 ish is reasonable (large end terraced, over 3 floors, 4 beds and decent garden, drive and garage) but they have reduced it to £184k and it's been that for a good 3 months now and still no bites. I would snap their hand off at that price if it was in the next village where we are looking to buy, unfortunatley it is now.

ognum

You need to know your market, I am in the process of buying and in my market for the type of property I was looking for it is a sellers market.

Most properties go to sealed bids, all go above asking. This is not London, just a buoyant market, no enough properties, lots of cash about!

What you need to work out is what your market is doing!

moneyistooshorttomention

Road_Hog wrote: »

I'd be quite offended at a cheeky offer of 20% off and I'd tell the EA not to pass any more offers on to me from said 'buyer'.

It's a seller's market at the moment and that sort of offer would just start ringing alarm bells. I'd be waiting for more negotiation when the survey came through and then a final cheeky drop in price just before exchange.

Obviously everyone is different, but I think 20% off the asking price is too much. £50K off a £239K price is a lot of money.

I don't think I would have been offended, so much as worried (ie what are they going to get up to next after making that daft offer?) sorta worried. I would tend to feel at the outset that an offer like that would indicate someone not to be trusted and I wouldn't want to bother.

For the record, I recently sold my last house for about 95% of my original asking price:)

The fact that other houses in the area have been on "for a long time" doesn't necessarily mean anything. That is true for my new area, BUT the better ones will still go pretty darn quickly. For instance, one I had my eye on was in good enough condition I knew it would be gone within a month and it was...