Negotiating Price

Mishomeister

I am looking to make an offer on a flat in London advertised for £155,000.
Could someone please suggest what my first and subsequent offers should be in order to ensure I can buy it for a lowest possible price.

kingrulzuk

Need more INFO Plz

Mishomeister

kingrulzuk wrote: »

Need more INFO Plz

What kind of info?

alexanderalexander

Many properties in London are going for above asking price at the moment.... depends on the exact area/property though of course.

In answer to your question, there's no set formula, but try to tease out from the estate agent what the property's marketing history is and use that to your advantage. If someone offered £140k last week which was refused, but the seller's indicated they'd accept £145k (which you'd be happy to pay), maybe you should offer £140k first and then let the seller push you up to £145k so then they think they've won (if you go straight in at £145k, the seller might try to push you up to £150k).

pinkpiglit

As Alexander said above, many London properties are being sold for above (sometimes well above) the asking price. It all depends what area of London you are in and how the market in that area is trending. Unfortunately you can't automatically assume you'll be able to buy it for less; although as we don't the local area or details of the flat and comparable sales, you might well be in with a chance.

Of course you might find yourself with a stubborn vendor... in my area of London there is a flat that has been on the market since March which is almost unheard of around here. It's actually very nice but well overpriced. We saw it and offered 9% under asking price and our offer was rejected (even though it was the only offer the vendor had received in seven months). Subsequently the vendor increased the asking price by 5%! It's since been reduced, although still above the original asking price (and yes, it's still on the market.)

alexanderalexander

pinkpiglit wrote: »

Of course you might find yourself with a stubborn vendor... in my area of London there is a flat that has been on the market since March which is almost unheard of around here. It's actually very nice but well overpriced. We saw it and offered 9% under asking price and our offer was rejected (even though it was the only offer the vendor had received in seven months). Subsequently the vendor increased the asking price by 5%! It's since been reduced, although still above the original asking price (and yes, it's still on the market.)

I've viewed places with that kind of seller before. You have to wonder why they are bothering to put the place on the market when they clearly don't actually want to sell.... and also why estate agent is willing to waste their time showing prospective buyers around.

AlexMac

There really are no rules, but after checking Zoopla or other sites which indicate actual recent sale prices for comparable homes, and their trend graphs, just decide your absolute limit and start £5-7k lower. And be prepared to walk away.

probably more important is convincing the selling estate agent that you are a good prospect- if they haven't already subjected you to a financial health check (as local agents do near me), make sure they appreciate that you are 'in funds'; i.e good for the money, with evidence of a deposit in the bank, a home loan agreed in principle by your lender, a solicitor already identified and ready to act as soon as they agree the sale, that you are a first time buyer, so not dependent on another sale, and keen to move as quickly as the solicitors can, but also flexible on timing if your seller needs to wait... All blindingly obvious stuff- Good luck