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How low an offer is insulting?

Hi, please be gentle! I'm brand new and I'm a complete novice in the property game.

We have very recently been given an mortgage agreement in principle for £202,000. While I am thrilled with the fact anyone entertained the idea of giving us a mortgage, living in the area I do that doesn't buy a huge amount (for context, a beach hut tends to go for £140,000 in my town).

We have seen a 3 bed house on Rightmove that ticks a lot of the boxes we need (size, area etc) but it's on for £225,000. The property has been listed since July this year.

The question is, if we viewed and liked this property and put an offer of £200,000, would that be so ridiculous as to be laughed at? I know that I won't know unless I try, but I just wanted to get a general idea of whether it was even worth viewing the property.

Thanks in advance :)
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Comments

  • rosie383
    rosie383 Posts: 4,981 Forumite
    I would say that you wouldn't get it for your budget but you won't know until you try. There are posters on here who have made low offers on properties which have been accepted. Don't get your hopes up even a tiny bit though.
    Father Ted: Now concentrate this time, Dougal. These
    (he points to some plastic cows on the table) are very small; those (pointing at some cows out of the window) are far away...
    :D:D:D
  • Make the offer that suits you. If the seller(s) get insulted by it then they should give their head(s) a wobble.
  • rosie383
    rosie383 Posts: 4,981 Forumite
    I would echo what Gordon says. Vendors shouldn't get insulted by low offers. They may accept, they may laugh, but you don't have to deal with them or see them again, so why would you care?
    Father Ted: Now concentrate this time, Dougal. These
    (he points to some plastic cows on the table) are very small; those (pointing at some cows out of the window) are far away...
    :D:D:D
  • Bart1
    Bart1 Posts: 170 Forumite
    Saw a great quote on a simalar thread yesterday (sorry can't remember who) it they ain't insulted your offer was too high.

    Go for it. What's the worst that could happen?
  • DaftyDuck
    DaftyDuck Posts: 4,609 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I try to picture the kind of person who might be "insulted" by a low offer. I find it difficult, but I then realise they are likely to be the kind of people who will be a nightmare to buy from ("no, the wallpaper was my favourite - I'm taking it... and the bathroom taps!"), and if they get "insulted", I'm better off not dealing with them in future.

    When selling, I have been "entertained" by low offers (2/3 of valuation), even "saddened" for the relative poverty (wrong word) of lovely people who can't afford a wonderful house. Insulted? . Harumph! Well, REALLY!!! .... ................... nope, I don't get it.

    I have made low offers on houses at times. I have done so on houses which I really loved, that were genuinely over the price I could afford. I have done so on prices that were, in my opinion well over-valued. I have submitted my offer in writing, explaining I could manage a very quick move to exchange in around 3 weeks if that would suit them, and a very (very) brief explanation for my low offer.

    Sometimes (elderly couple wanting to move on fast to a perfect bungalow; woman whose house had been on market for months; relocating well-remunerated businessman) I have met with almost instant (and grateful) acceptance. (Note, in return for a low offer, I am offering an almost-instant sale, so no mucking about from me.) Sometimes (more often) a rejection. No doubt sometimes an "insulted" vendor. But, I'm never going to meet them, so they can, in effect, just "#### off and die" for all I care.

    I would make an exception for a house I really, really, really wanted. There, you do risk alienating an owner by an "insulting" offer, or by the war of attrition that in several incremental offer increases. There, I'd be much more wary of a low offer.
  • Paully232000
    Paully232000 Posts: 2,108 Forumite
    edited 18 November 2014 at 10:59AM
    I would agree with the above, there is no offer that is too low (obviously within reason) it should be insulting, or if it is who cares as you are not buying houses to make lifelong friends with the sellers.

    When we bought I thought that I can always go up with my offer but much harder to start with one offer and then go down in price.
    Plus 10%ish lower doesn't seem like a bad starting point.

    Edit: Just read that your max is 202, maybe go in a bit lower than 200K as just because you have a mortgage in principle for 202, doesn't mean that you will get it, give yourself a bit of wiggle room. We were offered one amount at MIP and then a bit lower at offer.
  • Niv
    Niv Posts: 2,536 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    £200k for a house marketed at £225k is what I would consider an opening bid. If your max is actually the £202k you quote above, personally I would go in with that and say that's your max. It is your max so not playing around and then the seller gets the choice of take it or leave it. If they say no, but an improved offer would be welcomed you can simply say, no, this is my max and be done.
    YNWA

    Target: Mortgage free by 58.
  • Hoploz
    Hoploz Posts: 3,888 Forumite
    I would say 10% on a house that's been for sale for months wouldn't be an insult. Have you contacted the agent? Sometimes they leave things listed for sale when they are actually under offer to tempt enquiries in.

    Have a few viewings of properties in the price range and get an idea of what your money will buy is the best advice I can give. Consider whether area or size of property is most important to you. You really can't know that for sure until you've actually been on viewings. It concentrates the mind when you see things in reality, rather than just online
  • aym280
    aym280 Posts: 50 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Stevlar wrote: »
    Hi, please be gentle! I'm brand new and I'm a complete novice in the property game.
    ...
    The question is, if we viewed and liked this property and put an offer of £200,000, would that be so ridiculous as to be laughed at? I know that I won't know unless I try, but I just wanted to get a general idea of whether it was even worth viewing the property.

    Thanks in advance :)

    You could gauge the values of properties in the similar locations to reach a fair price. Then go £20,000 lower and see if you are lucky!
  • Davesnave
    Davesnave Posts: 34,741 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    After the 2008 Crash, in early 2009 we visited a number of properties in the hope that their vendors would have seen sense by then.

    Two properties spring to mind, one with a virtually bankrupt owner, who'd run out of funds to continue a half-done refurb, and the other a rambling place owned by a couple of infirm octogenarians.

    In our estimation, both properties were overpriced by £100k when they'd first hit the market, and they still hadn't come down that much....hardly at all in the case of the old couple.

    We put it to the agents that we'd want at least 80k off the properties before we'd be remotely interested. Both replied after consultation that our offer was ridiculous....vendors wouldn't discuss it etc.

    We bought elsewhere. To be honest we didn't love either property, but each could have been good with enough £££ spent. They just weren't good enough to pursue longer term.

    The bankrupt bloke caved-in after another 6 months, selling for £20k less than we'd offered. The old couple's house sat there for 3 more years, gradually falling till it sold at £100k less than the original asking price.

    There are always people who are going to be 'insulted.' Many will later move to grudging acceptance. The question is always how long is their time scale between one and the other?

    Four years in one case above!
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