How low can we go? Making a low offer.

RDW1989

My boyfriend and I are looking to buy our first home. We've seen a house that is on the market for £215k, however it's been on the market since September. A sale was agreed before Christmas but fell through, and the estate agent says they agreed £197k.

We like the house, but it's not perfect. I think the main reason it's been on so long is the decor- it's very darkly decorated, cluttered and overpowering (think big, jazzy prints). We'd want to knock down 2 walls to make it more open, which may cost a bit extra and take some time. The added benefit for them is that we're first time buyers with deposit to hand and mortgage in principle. They're selling due to a divorce and there's no chain as they'll be renting, so I wonder whether they just want a quick sale.

We've been thinking about making a very low offer, to see if they'll eventually negotiate to an even lower price than £197. We'd like to get it for around £185 if possible. We don't really have anything to loose- there's no rush for us in terms of securing somewhere.

What's the lowest you'd go?:D

Running_Horse

The way you describe it I'm surprised you are bidding at all.

RDW1989

In what way?

It's a nice size, and has a nice feel (high ceilings, etc), but the current owners have a very odd taste when it comes to decorating.

However that's easily remedied - without their stuff and after a repaint we think it will look nice. We're seeing it as an opportunity to get value for money, by looking past the current decor.

RDW1989

Quizzical_Squirrel wrote: »

Do you know why it fell though?

Was the offer just before Christmas or was that when it fell through? Has it just gone back on the market now or has it been back since before Christmas?

There was a chain on the buyer's end which fell through.

I'm not sure about the details - the impression I had was that it fell through before Christmas. It shows on Rightmove as having been listed since Sept, so if they didn't remove the listing perhaps there wasn't a big gap?

JencParker

It's a nice size, and has a nice feel (high ceilings, etc), but the current
owners have a very odd taste when it comes to decorating.

However that's
easily remedied - without their stuff and after a repaint we think it will look
nice. We're seeing it as an opportunity to get value for money, by looking past
the current decor.

But you're buying a house not the decor. It is simply cosmetic. If you want something you don't need to decorate you buy a new house or a refurbished one.

RDW1989 wrote: »

My boyfriend and I are looking to buy our first home. We've seen a house that is on the market for £215k, however it's been on the market since September. A sale was agreed before Christmas but fell through, and the estate agent says they agreed £197k.

We like the house, but it's not perfect. I think the main reason it's been on so long is the decor- it's very darkly decorated, cluttered and overpowering (think big, jazzy prints). We'd want to knock down 2 walls to make it more open, which may cost a bit extra and take some time. The added benefit for them is that we're first time buyers with deposit to hand and mortgage in principle. They're selling due to a divorce and there's no chain as they'll be renting, so I wonder whether they just want a quick sale.

We've been thinking about making a very low offer, to see if they'll eventually negotiate to an even lower price than £197. We'd like to get it for around £185 if possible. We don't really have anything to loose- there's no rush for us in terms of securing somewhere.

What's the lowest you'd go?:D

These are YOUR plans for the house - why should the seller consider lowering their offer and effectively paying for the alterations you wish to make?

The price you offer will depend on a lot more than the information you have given, however, be aware that making a ridiculously low offer is likely to do you no favours in the negotiations. It happened to me and I had no respect or, more importantly, trust for the (potential) buyers - my immediate thought was I wonder what they're going to pull when the survey comes back!

There seems to be an idea that you offer a silly low offer and work up from that until you get an agreed price, however, all you do is come across as someone trying to get one over.

JencParker

RDW1989 wrote: »

There was a chain on the buyer's end which fell through.

I'm not sure about the details - the impression I had was that it fell through before Christmas. It shows on Rightmove as having been listed since Sept, so if they didn't remove the listing perhaps there wasn't a big gap?

You'll find a lot of estate agents leave the house 'for sale' on Rightmove until the contracts have actually been exchanged, even though an offer has been accepted.

Hoploz

The EA has been surprisingly forthcoming with all this information. I would think if they wanted 197 or below it'd be priced for quick sale at 199.

Worth a punt, you never know. But as jencparker has said, go in too low and they may say they don't want to know afterwards.

It happened to me, someone offered stupidly low then started upping it in 25k increments. I said I would not accept any offer from him even the asking price, as I wouldn't trust him to go through at the agreed price. His opening offer of 100k off AP told me he was either an idiot chancer or he genuinely thought the house was worth the lower price. Either way would not achieve the sale, and someone who offered 5k off AP got it shortly afterwards.

lawriejones1

We offered 10% under asking price, settled at 5%. Wasn't wirth bothering with as the sellers were clear and honest with us.

Argghhh

try a cheeky one at 190k and be prepared to go to 200k - just because they accepted 197k previously- like someone mentioned - spring is here and the market will be picking up so others will be interested
we put an offer on a house at 25k less than asking price but knew if rejected we would not be going higher as it was our maximum. No way of us being accused of messing the seller around so it was a ok then thank you and goodbye when it was rejected

Running_Horse

RDW1989 wrote: »

In what way?

It's a nice size, and has a nice feel (high ceilings, etc), but the current owners have a very odd taste when it comes to decorating.

However that's easily remedied - without their stuff and after a repaint we think it will look nice. We're seeing it as an opportunity to get value for money, by looking past the current decor.

So the house isn't that bad after all. You know it, and the sellers will know what they feel it is worth.

You could try an offer way below that figure, but having been in that position I just assumed they were not serious and waited for someone who was.

System

Hoploz wrote: »

The EA has been surprisingly forthcoming with all this information. I would think if they wanted 197 or below it'd be priced for quick sale at 199.

Worth a punt, you never know. But as jencparker has said, go in too low and they may say they don't want to know afterwards.

It happened to me, someone offered stupidly low then started upping it in 25k increments. I said I would not accept any offer from him even the asking price, as I wouldn't trust him to go through at the agreed price. His opening offer of 100k off AP told me he was either an idiot chancer or he genuinely thought the house was worth the lower price. Either way would not achieve the sale, and someone who offered 5k off AP got it shortly afterwards.

I completely agree with this. I am selling now and I would rather stay on the market than even begin negotiations with an offer that was too far off what I thought my minimum price was.