House offer: Is a lack of negotiating a deal-breaker?

brazillondon

Hello!

How much of a deal-breaker is it to have a buyer that offers with no further negotiation at all?

I’m interested in knowing how much of a deal-breaker it may be - whether it has a disproportionate effect on the sellers decision. I ask particularly in the case where the amount offered is within the asking price range - and thus was a strong initial offer.

In my case, I’ve offered a strong initial offer - without the intention of increasing the offer at all. This has been rejected, with the seller asking for more. My hunch is that I would have got such a response regardless of what I offered. It’s also my hunch that should I refuse to budge at all, even for a token amount, then it would significantly effect the chances of the seller going no further with me. Importantly, here I get the feeling that if I offered lower, and worked up to my current offer, then it would have been accepted - but surely what matters is the final offer amount, irrespective of how it was reached? (i.e even if it happens to have been the first offer).

I offered high as an initial offer, as it’s a property I feel I’d be very happy to own - and it’s in a very competitive market. At the same time, I’m confident in being able to find another property that I’d be as happy in. So my question here is less asking for advice on my current situation, but I’m more looking for insights into negotiating - and it’s perceived importance.

Appreciate any thoughts!

lovinituk

You are totally over thinking it. Offer a price, see if seller accepts. If they don't either walk away or offer more. Rinse and repeat.

It really is no more complicated than that.

Grenage

Some sellers assume that the opening offer is the first of several. I started off with that mentality as a buyer, but quickly changed to making best and final offer as my first.

Your way is just easier.

kilby_007

On Friday last week we offered 280K on an "offers over 299K" property which has been on/off the market with different agents since November last year. The price for us is affordable but there are a number of immediate and expensive changes to make if we did buy it (all of the 20 odd windows need replacing, for a start). We put this to the EA but I'm not sure how much of our reasoning they've passed on to the vendor.

Anyway, the expected response in the first step of 'the house buying dance' came back on the Saturday - "the vendor is looking for more" but as we'd offered what I thought was a decent offer we're playing the "take it or leave it card" (worded a little less abruptly) to which the poker faced agent responded "that's fine" and to get back to them if we wanted to increase our offer. Fast forward to this morning and we got a call from the finance dept of that Estate Agent asking if they can help us with an increased mortgage to put in a higher offer. We said that although we could afford to increase our offer, we don't think it's worth more. I'm away with work for a couple of weeks so I'll ring when I get back and reiterate our offer if they still haven't sold it to someone else.

We've played this waiting game before and it's paid off, and we've also had it backfire when another party comes in and they use your offer as leverage to get them to pay more. It's a gamble, but the longer a property has been sat there, generally, the faster a deal in your favour can be done, IMO, but it ultimately comes down to what the vendor wants to accept and sometimes no amount of manoeuvres in the housebuying dance will change their mind. I've also gone through your line of thinking - if I'd offered lower and played the game, would they have accepted our 'final offer' at the same price. Who knows! I've had almost the exact scenario occur before (same price/offer in fact) and they came back 2 weeks later and accepted.

AnotherJoe

You've approached your offer from the POV of you as a seller, and it seems you as a buyer, but you aren't the buyer. I'm sure if you were you could have a very logical discussion with them

As it is, you are likely to come across as very arrogant and possibly make the vendor turn down even a minor uplift.p because not everyone is as logical as you. Sometimes people get emotional about their houses believe it or not. If you'd still like to buy the place, I'd go back and be apologetic and say you do like it which is why you made what was really was your highest offer so please keep in touch but that's as much as you can afford.

kilby_007

AnotherJoe wrote: »

You've approached your offer from the POV of you as a seller, and it seems you as a buyer, but you aren't the buyer. I'm sure if you were you could have a very logical discussion with them

As it is, you are likely to come across as very arrogant and possibly make the vendor turn down even a minor uplift.p because not everyone is as logical as you. Sometimes people get emotional about their houses believe it or not. If you'd still like to buy the place, I'd go back and be apologetic and say you do like it which is why you made what was really was your highest offer so please keep in touch but that's as much as you can afford.

If you read the post properly, it is clear that the OP is the buyer. I don't think making a single offer and then not increasing it is 'arrogant'. What's arrogant about making your first offer your best offer? Surely it's more arrogant to go in with a low offer to try your luck?

warby68

Depends on seller, of which there are an infinite variety of mindsets, moods and circumstances

Depends on market, which is pretty much a seller's one for now

Depends on how long for sale

Depends on how close to asking your 'strong' offer really was

One way to try and play it both ways is to offer a token increase to show both that your first offer was good and serious and you really aren't for moving much but that you're happy with a little goodwill gesture to show willing. But do not budge again then.

moneyistooshorttomention

I'd agree that people don't necessarily think logically - more often than not in all probability.

We can all only speak for ourselves on this. The expectation is that more will be offered. I had a one-off offer on my last house and the EA's reaction was "Not bad for a starter offer" and we both waited for the buyer to increase their offer and they never did. I dont know if I would have accepted it if it had been for enough. I think I probably would have - but that was because I was very clear exactly how much I actually expected to receive for the house. So - if I'd been offered what I actually expected to start with - chances are I would have taken it personally. But that offer had to be rejected - as it was too low.

I did use another offer as leverage when I was fortunate enough to get another offer within hours of it - and that went into "bidding war" between them to see who would offer me the most. Several higher offers between them later and the bidding war concluded by the end of the day and the winner was notified it was them.

Tygermoth

We put in an offer on a house last night that has been on the market since Nov last year in SE (most houses go on open day) 14K less than asking.

I have a feeling even though the EA, The rest of the road and we know the house is overpriced the vendors are going to reject thinking they can bid us upwards. Its a fair offer, in line with house sales in the road and for three beds in the area. Its not been extended or improved so its does not warrant the asking price. (its already been reduced by 30K)

I have told the agent this is our only offer. She muttered under her breath and sighed that you can lead a horse to water... so i will assume the vendor has a history of not listening or not taking advice on the sale price.

So another one for vendors not being logical people.

AnotherJoe

kilby_007 wrote: »

If you read the post properly, it is clear that the OP is the buyer. I don't think making a single offer and then not increasing it is 'arrogant'. What's arrogant about making your first offer your best offer? Surely it's more arrogant to go in with a low offer to try your luck?

Sorry, I just wrote it wrongly I understood they were the buyer but my fingers thought different

Key point, I didn't say the OP was arrogant, and I don't think they are, said they might appear arrogant to the seller.

Person pops up, makes one offer, and doesnt take part in the normal ritual dance of prices converging towards a final offer, could offend the seller. Is that logical? No, but it's what could happen and it doesn't give the OP much room to manoeuvre.

The OP was being calm and rational but not all people are especially when it comes to selling their home.

Again, in case it wasn't clear since I messed up typing it, I don't believe the OP is arrogant (and apologies to OP if it came across that way) but I do think they may annoy the seller and it's better to creep up to your final price (if it's not full asking) simply because that's general behaviour and most people behave that way and acting outside the ordinary may lead to them imputing motives to your behaviour that aren't there.

melstar11

I think a lot of it depends on how you have put your offer across and whether you have told the EA the rationale behind it. As a seller, if the offer was within the price band the house was on the market for then unless the potential buyer had explicitly stated that was their best and final offer, then you might see if they could increase that offer, but you'd be daft to turn them down because they didn't play games.