Negotiating House Prices

ethank

faeryty wrote: »

The message prior to yours illustrates my point fairly well. This poster says that they considered a reasonable price 107k-110k, and yet put the flat on the market for 115k. It's a guessing game as to how much someone/their EA has inflated the price they actually want.

My point was actually that people inflate their prices because people don't offer the asking prices. If I had put my house on the market at 107k no one would have offered at the level I wanted. It is frustrating, however it is the way it works.

My flat was on the market for 5 months. At one quiet period I was persuaded by an estate agent to advertise Offers over £105k to stimulate demand - actually in my case it meant we got even lower offers! Someone offered me 90k - which was less than I paid for a property that needed complete refurbishment when I bought it in 2004.

ethank

Road_Hog wrote: »

If you don't like the way property is sold, then don't perpetuate the silly process. Offer the seller a decent price and crack on with the purchase. A seller that is happy with the price is likely to be more co-operative, leave fittings and less likely to start playing silly !!!!!!s.

I could not have put this better myself! This was exactly the point I was trying to make.

suze012

I put my house on the market for I wanted and what the home report valued it at, unfortunately no one was interested, so in the end had to accept a lower price, not that I was aiming for that price, but have to move. So had to take a hit on our property
The market has changed 5 years ago, its a buyers market, thats what happens. I will now play the same game tomorrow. Everyone wants and expects a bargain.

phoebe1989seb

ethank wrote: »

Someone offered me 90k - which was less than I paid for a property that needed complete refurbishment when I bought it in 2004.

Yes, but any property is only worth what someone is willing to pay and if the market has moved downwards, you often have to suck it up. In 2007 we bought a house that required complete restoration (a very old one-off character property) and spent over £40k restoring its features, fitting a bespoke kitchen, new bathrooms and rewiring etc. When we sold to relocate closer to family in 2011 we accepted that the market had changed and we'd have to take a hit, especially as we wanted a quick sale, so we priced accordingly, accepting an offer 4% below AP within two weeks......this was £40k less than we'd paid in 2007. We were lucky and could afford to do this, although that didn't make it any easier!

In the OP's case maybe the vendor will eventually accept a low-ish offer........it really does depend on their circumstances

Nebulous2

You're playing a game. One in which the other party holds some information (how much they will take) and you hold some information (how much you can/will offer) The person who holds most cards in this is the estate agent as they; do it all the time, know bits of each persons situation and they don't have the personal involvement. They aren't going to be left with two houses or without a house if this falls through.

If I was you (but I'm not and I don't know the market there or any of the people) I would go in again with a relatively small increase. Say £110,500. Advise that you will also pay for your own surveyor and solicitor but you would expect certain things included.

This looks as though your budget is really tight and you are struggling to increase on your previous offer. They will then feel there is not a great deal of mileage in squeezing you further.

I know more about human behaviour than buying or selling houses though, so proceed at your own risk!