How much to offer?? Is 10% under normal?

kiddakidda

hcb42 wrote: »

the market of a few years ago, I would have thought £249K would be a sensible offer

In a rising market, though, the rules change.

I am in that boat potentially, very much a rising market where I live , limited supply, and house valued around £275-285K. I would not accept £249K. 3 years ago, I might have done if I needed/wanted to sell.

I agree, whilst I'm all for getting the best possible deal I don't think we are in a strong buyers market currently (dependent of area/region).

Knocking 25k off in the current market is pushing it

kiddakidda

tillycat123 wrote: »

Offer made on my house last week, 5% below asking price. Place I had my eye on that's been up for sale for months won't budge at all on the price, they want full asking price.

I did my homework and along with my offer I gave a list of work needed to be done, but still not willing to budge.

Moved on and made an offer on another property Saturday. 4% below asking price, 20 year old house still with original kitchen, bathroom, windows and boiler. I have chased the agent I don't think he's even passed my offer on! Said the woman's a nightmare to deal with and thinks the place is worth the asking price and suggested I upped the offer.

I think I will be staying put at this rate.

I know what you mean.

There is a lot of people getting asking price and above in our local area (Solihull - West Mids) I offered on a couple of places at 10-20k below and got nowhere. The one I am hoping to buy was only accepted at 1k under asking.

hcb42

I bought a house in 2006 for £270K (was on for OIRO £275K), I had tried to keep under £250K and could not get anything like what we wanted, massive compromise on space etc, location etc, making the decision to spend that extra £5K on stamp duty (I just factored it in as part of the price of the deal) was the best thing I ever did.

(Note I have sold, relocated and downsized since! The first one is worth the thick end of £400K now)

So it depends on whether it is worth it for you (OP) and indeed whether the vendor can afford to lower their price and achieve their goals (or how desperate or not they are to sell)

Mickygg

I had someone offer 10 % below asking price on my last place. I told them to jog on.
You have to consider whether the property is worth the asking price. I always price my houses reasonable in order to sell, rather than inflating to accept far below.
Thinking that offering 10% below asking price is wrong and I'm not surprised EA were abrupt, I would have been as well. Every house is priced differently and for different reasons.

Loopy28

I think it depends on the person selling e.g. what their expectations are, how desperate they are to sell. It also depends on the market in your area and how long the property has been on the market and if it has been reduced already.

In my experience of offering so far, no vendor has entertained 10% reduction, not even 5%!

First property we offer on was listed as 170k, it had been reduced from 175k after 6 months on the market. I offered 168k, the vendor thought it over for 2 days and rejected the offer.

Second property was listed for 182k, had been on the market for 2 months. I offered 175k, the EA said the vendor would definitely not consider it and had said not to put offers under a certain amount through to them. The EA indicated they were looking for 178k minimum.

Third property, was on for guide price 165k, was new to market. We offered 165k-rejected. We were told to guarantee the sale and have it taken off the market we would need to offer 170k. We declined to offer that amount.

Forth property and the one we are buying was on for offers over 180k. Had been on the market for 6 months and had been reduced from 190k. We offered 176k-offer instantly declined. A couple days later we offered 178k, vendor thought this over for a few day and came back with a decline but we knew we must be close. Final offer made at 180k-accepted :-) We were happy with this as recent sales for similar properties on the road were 182-185k so we were pleased.

Looking on zoopla at listed prices and sale prices in my area, generally houses seem to only go for between 2-5k below asking. I am in the southwest and there is a bit of a supply issue in my town so vendors don't need to take much below asking.

kiddakidda

It's pretty obvious sometimes when houses are outside of their market range and if this is the case then hit them with a hefty amount off.... they deserve it.

But it's also obvious when properties are priced fairly. And in this case offers need to be more realistic.

I priced my own house on what I considered to be the market value. I received 1 offer at asking price and 2 offers at £3k below.

stator

Asking price is irrelevent. All that matters is what it's worth to you. Just because someone has put it on the market at X doesn't mean it's worth X or even 10% below X. Even in a so called "rising market" often people have completely unrealistic expectations about selling their own houses. Watch the Sarah Beeny shows on Channel 4 to see what I mean

tillycat123

House 1 - I offered on priced £217k both neighbours sold in April this year, £196k and £212k. The £212 had a new kitchen the cheaper one a new boiler. The one for sale now all needs doing and hanging on for the full price.

House 2 - up for £250k neighbours sold for £220k and £237k 18 months ago. Another one holding out for full price despite no refurbishment, just clever room dressing.

I'm not even in an area where houses are shifting. So annoying as it's a village and really want to stay in it but need to down size but nobody wants to accept an offer despite recent sales showing they are over priced.

phoebe1989seb

We recently had an offer 10% below asking price accepted - the house had been on the market quite a while (vendor has already bought somewhere new and moved on) - and it had already been dropped by around 15% from the original AP. Originally we went in even lower, but despite it sitting empty the vendor wasn't interested.

On our sale we accepted an asking price offer, but had also previously reduced the price by around 10% in order to achieve a quick sale as despite being a fully restored period house, properties in our village generally take a while to sell and we didn't want it hanging around till the New Year

Hoploz

I think 10% is too much discount. They priced it well clear of the 250k mental boundary.
Just wanted to add that sometimes you can get an idea how long houses have been on the market by looking at them on Zoopla. It says when the listing started, and any price variations are also shown. Bear in mind however that if they have switched agents it only says when that particular listing went up, so it could have been on with a different agent previously.