negotiating house price after offer

london.cidade

Hello,

Just seen a house, my wife's liked it. thinking of giving an offer. asking price is 650K.

1) thinking to give an offer about 575K . how does that sound to you ? too low or possible to give even lower ?

2) let's assume that we gave an offer as 575K. then how are the negotiations performed ? will estate agent/landlord, just say no without mentioning a number ? or will they mention a number like 625K ? just trying to anticipate next steps. most probably my offer won't accepted, then how will I know how much to increase ?

thank you

lewisa

1 - to you the house is worth what you are willing to pay. To the vendor it is worth what they are willing to sell for.

2 - the EA should pass any offer to the vendor
. In the past i have had offers refused with no feedback, offers refused with feedback hints and offers refused with a clear offer x and its a deal. So anything can happen.

Dont second guess, just offer what you feel its worth to you and/or what you can afford

Thrugelmir

london.cidade wrote: »

1) thinking to give an offer about 575K . how does that sound to you ? too low or possible to give even lower ?

What's the thinking behind your initial offer? Property overpriced. Been on the market for months.

london.cidade

It's been 3 months on the market. First, she's tried to let it then decided to sell it. The agent told me that the landlord is trying to get rid of the house. She is an old lady. If it was not next to train it would cost much more expensive.

The reasons why I think to offer 575K are mainly because of my affordability and as all we know when a property has been put on the market, asking price almost always is higher than the selling price. Then I'm a first-time buyer, that might attract the landlady too. These are my thoughts. Thank you

Lemonsqueezer78

Offering £75k under the asking price, it's very possible they will reject offering no feedback or "hint" at an acceptable offer - since they may just feel there is absolutely no hope at getting you to come up from that level to anything near the price they want.

As a first time buyer (i.e. nothing to sell) you may have a bit of power in some people's eyes, but probably not as much as you think. Unless the house is hugely over-priced I wouldn't rate your chances at getting much of a response tbh.

You seem to think they have inflated the price assuming a much lower - but ultimately acceptable - offer will come in. And whilst some people do play it that way, not everyone does. For many, the price they market it at is the price they want - or very close to it.

Good luck.

teddysmum

Goodness, that reduction on the price is enough to buy an entire (admittedly a terraced) house in some parts of the country.

Thrugelmir

london.cidade wrote: »

The reasons why I think to offer 575K are mainly because of my affordability

The vendor won't care about that. I'd expect a straight decline with no comment.

Mickygg

£75k reduction because of your affordability is not a case. I'd be so annoyed that someone was viewing that could not afford even close to asking price.
3 months on the market post brexit is not a long time.
As thrugelmir says.

copperjar

I've just offered on 3 properties. Went around 7% less on first offer. Two rejected outright, one came back with a counter offer. Everyone is different though. £75k less is eye watering!

Cakeguts

Find out what other similar houses are selling for in the same area. If they are around £650K then it is likely that the seller will just say no to your offer. The seller doesn't care how much you can afford. If you really can't afford £650K if you had to then this house is actually too expensive for you.

london.cidade

please check Zoopla and list according to the reduction, you'll find so many houses with the huge reduction in London. I have already seen and been to two houses with reduction one 50K another 75k. Moreover one EA called me today to inform for 40k reduction for another house which is currently on the market.