What to offer? Price already reduced.

CuteMole

My husband and I are FTBs. The house we are interested in has been on the market for just over a year (EA reckons there's just a lack of buyers for this type of property?!?).

It was originally on the market for £185,000. Then reduced to £179,950. And now it's at £174,950 (reduced again a month ago).

What would be a reasonable offer? Do we go in low and see if they'll take it for a quick sale? I've read on here that it is usual for offers to be accepted at 5-7% lower than asking price, but would this be the same for one that has already been reduced by just over 5%??

We also know from Zoopla that the current owners bought in 2006 for £176,000 so they are already going to make a loss at current asking price :-/ (I know I shouldn't get emotionally involved but I kind of feel bad that they wouldn't get their money back!)

If we were to offer £168,000 is that a bit too 'cheeky' to start with? We could go to full asking price but I do believe one reason it hasn't sold sooner is that it has been overpriced.

Don't want to seem unrealistic but with the little bit of redecoration and updating that we would want to do (not a necessity but to make it to our taste) it would be good to have a couple of grand in hand....could possibly change the kitchen as well if we got the right price

Anyway, any advice would be good....not had to do this before!!

Landofwood

You should offer what the house is worth.

Daerve

Firstly, forget what they paid for it.

It has zero relevance to what you are going to pay for it.

My strategy here would be offer 166k and if you do not receive a counter offer or it's refused, push to 169 and ask them for a counter offer if it's refused.

Depending on how much you want the house, you can either then be prepared to offer your maximum or the asking price.

I would however say that given the drop in price they may be expecting to get the asking price so don't be surprised if most offers are refused.

Edit:- I should also add that as my mortgage advisor wisely said, the money is better in your pocket than theirs.

Everyone has a lowest price in mind, you just need to get to it without bidding up in £'s.

CuteMole

Thanks for replies.

Landofwood - I think this is part of the problem - I don't know what it's worth! Does anyone really know? Especially in the fluctuating housing market!! We have see a couple of places at similar asking prices but they are all very different properties in slightly different locations. The house we're interested in seems reasonable at current asking price, we wouldn't have paid £185,000 original asking price, but if the vendors thought it was worth that then how are we to know if it is actually worth the current asking price, or whether we can successfully offer less. It's a bit of a game isn't it??!!

Daerve - thanks for your advice. I hadn't thought of asking for a counter offer - surely they would just say they want the asking price? I guess we keep offering up in £1,000 increments until they accept or is that not the done thing - would they see we were keen and keep pushing us upwards?

jacko74

Daerve wrote: »

Firstly, forget what they paid for it.

Why?

Fair enough if they bought it many years ago, or as repo, then the price they paid might not have any bearing on the current value.

But if they bought it quite recently on the open market then surely what they paid for it can be used as an indication of what the property is now worth.

Daerve

CuteMole wrote: »

Daerve - thanks for your advice. I hadn't thought of asking for a counter offer - surely they would just say they want the asking price? I guess we keep offering up in £1,000 increments until they accept or is that not the done thing - would they see we were keen and keep pushing us upwards?

I wouldn't do that, I'd offer twice and if they were both refused with no counter offer I'd go to max.

No one outside Londinium or the South East expects to get asking price for their house. I certainly didn't after realising how bad the market was round here.

Daerve

jacko74 wrote: »

But if they bought it quite recently on the open market then surely what they paid for it can be used as an indication of what the property is now worth.

While I accept your point it is indeed just that, an indicator.

A property is only ever worth what someone will actually pay for it now.

alchemist.1

jacko74 wrote: »

Daerve wrote: »

Firstly, forget what they paid for it.

Why?

Fair enough if they bought it many years ago, or as repo, then the price they paid might not have any bearing on the current value.

But if they bought it quite recently on the open market then surely what they paid for it can be used as an indication of what the property is now worth.

Only if they haven't overpaid for it in the first place.

OP, I would make two offers, initially £165K and then up it to £170K if they dont accept and that's it (Subject to houses in the area selling for the same amount).

They are obviously struggling to sell it so would welcome any offers by the looks of it. Nothing cheeky about it.

CuteMole

Thanks guys!

I think that they probably bought at height of house prices around here (2006) and so what they paid for it 8 yrs ago might not be a good indication.

So, in general, offering low to start with and see what they say wouldn't make them think we were being unreasonable? Then, if they reject, go a few grand higher but not straight to max? At the moment we are not aware that they've had any offers at all. Might be in our favour!

Hoploz

What is their position? Have they got their eye on an onward purchase? If so, any reasonable offer would prob be accepted just to get going. If they have no idea what they want to buy then they may be more picky (we don't HAVE to move....)

GoldenShadow

Depending what part of the country you're in (does property move quickly normally or is it quite slow?) I'd be wondering why it has been a whole year. What about it makes the EA say there aren't many buyers looking for houses like it?