Listing prices vs. sold prices

getmore4less

Bossworld wrote: »

I know a house is only worth what someone is willing to pay for it,

To a willing seller.

I would not re offer but point the agent at getting a more realistic expectations from the vendor(s) if he wants a place sold.

And keep looking.

Thrugelmir

Bossworld wrote: »

Fully understand where you're coming from, I'm just concerned that with the agent suggesting £222 to £225 would do it, me coming back with another offer of say £206k would just look like I'm not listening?

At this point in time. I'd say yes. As the vendor is obviously hoping for something far higher than even your best offer. Continue to search while watching this property. Over time the advertised price may well fall.

melstar11

We made a low offer on a house which was rejected. The EA told us what the vendors would be delighted to be offered X. We went back to them with a revised offer nearly £10k under that figure, but showing we had costed everything to reach that. We had an offer on our house that was less than we ideally wanted, but which we were prepared to accept if we could secure our onward purchase. Our revised offer was accepted, but we were the only people to offer on the house we went on to buy and had been on for a long time.

Hoploz

You make it sound as if there are plenty of similar houses available, so offer low on several and eventually you might get lucky.

If you're keen to get a deal done sooner then you'll have to target a house that's been on for a while, where the seller might be more willing to accept a lower offer.

Btw I would never offer 199 .... It's psychological. 201 would have them less likely to blank it out, ESP if you're willing to end up even higher.

(You still haven't said what you've sold your house for vs asking price!)

Debtslayer

You offer what you think the house is worth and what you are willing to pay. If you are willing to pay 208k then that is what you work up towards offering, making it clear to the agent that is your final offer and you are looking at other properties. And do look at other properties you may find something you like more anyway! Sounds like there are quite a few in your area so you do have a choice
Remember the EA works for the seller so want to get as much as they possibly can.

Bossworld

Hoploz wrote: »

(You still haven't said what you've sold your house for vs asking price!)

Because I understood the point 'Andypandyboy' was making ten posts ago, but it doesn't really apply to me.

To answer it, I'll quote another post from this thread:

Wassa123 wrote: »

It depends on the estate agent.

Here one agent lists the asking price high and they either reduce it later or accept offers under the asking price.

Another agent lists it really cheaply, and everyone compares it to others on the market and it gets loads of interest and goes for way over the asking price.

Not 'way' over in our case, but enough to prove that the tactic works. Hence this thread with me asking for guidance on the other scenario that Wassa123 mentions :beer:


---

I do think we'll end up elsewhere so I'm not getting too tied up emotionally on this one. We'll know more about timelines with our sale in the week as well. Just want to go into the next one fully armed with our tactics and it's all useful advice so thank you.

MobileSaver

Bossworld wrote: »

Not 'way' over in our case, but enough to prove that the tactic works.

So you would have turned down flat any offer 10% under your asking price but are frustrated no-one else will accept your 10% under price?!?! :rotfl:

Bossworld wrote: »

I do think we'll end up elsewhere so I'm not getting too tied up emotionally on this one.

I think you're right as the prices in the area you are interested in are obviously a bit more than you are prepared to pay.

Bossworld

MobileSaver wrote: »

So you would have turned down flat any offer 10% under your asking price but are frustrated no-one else will accept your 10% under price?!?! :rotfl:



I think you're right as the prices in the area you are interested in are obviously a bit more than you are prepared to pay.

See the reason I didn't answer the post was exactly that kind of sanctimonious nonsense, as it's lacking any kind of context.

There is another 3 bed on our estate currently up at £160,000. It has been up at that for nearly 9 months (on and off), and I dare say, will continue to be up there for some time. It represents a massive hike over the recently sold prices on the street.

We bought in 2012 when the all or nothing stamp duty threshold meant that £125,000 as a first and final offer worked. So, I've not much experience to go off, hence me asking a question on a public forum.

The all or nothing threshold is no longer there, meaning that it's no longer a real bargaining tactic at our selling price. Therefore, I was happy to take the estate agent's suggestion of putting a price on that would attract interest, with the caveat of 'offers over', and it's worked for us as the house has sold quickly. I could have put it up at a higher price knowing that there was a large margin to take offers of 10% under (or more), but that risked not getting the footfall. Two different approaches, as already identified by Wassa123.

I would kindly refer you back to the bold part of my first post, which states:

I know a house is only worth what someone is willing to pay for it, but am I alone in feeling stupid ringing up an estate agent and going in at 10% under knowing that it's close to the recently sold prices on the street, but absolutely miles away from the current asking?

From reading countless threads on this forum, starting off at 10% under (or even more) is seemingly the done thing, and that if I don't feel embarrassed, it's not low enough. Whereas, I do feel embarrassed, and feel like I'm wasting people's time, hence me asking for guidance, not an out-of-context public dressing down.

booksurr

Bossworld wrote: »

See the reason I didn't answer the post was exactly that kind of sanctimonious nonsense, as it's lacking any kind of context.

now that you have provided the context you can make your own decision if you consider the discussion on a public forum to be nonsense

if the price you accepted was more than 10% less than the asking price of the unsold 160k 3 bed house on your estate then your tactics of offering more than 10% off asking of the one you want are reasonable.

The asking price is trying to set a new value that you are not prepared to pay, so the house is not (yet) "worth" its asking price based on your current tactics

agreeing a value is, as you are well aware, a very simple game:
a) ask low and "demand" offers over, or
b) inflate the value and expect to accept a "discount"

a) puts off those who regard house hunting as one of the last bastions of haggling in the UK economy, therefore if they cannot get a "discount" they feel ripped off. You currently fall into the later category as you consider the asking price a rip off, but your vendors have not yet had enough no hope offers to accept the discount they are willing to give is not enough.

In your current situation of vendors not yet realistic in their expectation only time will change things

Bossworld

booksurr wrote: »

now that you have provided the context you can make your own decision if you consider the discussion on a public forum to be nonsense

if the price you accepted was more than 10% less than the asking price of the unsold 160k 3 bed house on your estate then your tactics of offering more than 10% off asking of the one you want are reasonable.

The asking price is trying to set a new value that you are not prepared to pay, so the house is not (yet) "worth" its asking price based on your current tactics

agreeing a value is, as you are well aware, a very simple game:
a) ask low and "demand" offers over, or
b) inflate the value and expect to accept a "discount"

a) puts off those who regard house hunting as one of the last bastions of haggling in the UK economy, therefore if they cannot get a "discount" they feel ripped off. You currently fall into the later category as you consider the asking price a rip off, but your vendors have not yet had enough no hope offers to accept the discount they are willing to give is not enough.

In your current situation of vendors not yet realistic in their expectation only time will change things

I fully appreciate the points you're making and of the merits of free, civilised discussion. The poster before was a rather cheap shot.

I don't necessarily consider the prices a rip off, I'm just struggling to marry the asking prices to the sold prices, with the middle ground inbetween.

I knew we weren't going to get it at 199 (or near), I'm just concerned of the scenario where an offer that is higher than anything else has sold for recently, is still 10% away from what the seller has priced it at, and in turn is still about 5% away from what they're willing to take.

In short, I'm concerned I'm going to be wasting my time and sellers time. If there were sold prices at 220 I think it would be a completely different (and more obvious) matter.