Putting an offer on a house that's just been put on the market - how low to go

lessavyfav

Hi all, I'm hoping you may be able to help with some advice!

My husband and I are first time buyers, we've checked out a few places before (without putting in offers), but the place we're going to see on Saturday seems very promising (area we are looking at, style of house we're looking for, needs a bit of work which is what we want). It's priced at £430k but we saw it was purchased for £250k 3 and a half years ago and hasn't had any improvements as far as we can tell (agent is using the same photos that were used back then). Other similar places — not that they come up very often — are priced around £380-£400k (in better condition).

The thing is, this is going to be the first open day and apparently it will have a lot of viewings. We can afford the place, but it feels overpriced. Does an offer of £400k seem ridiculous?

Obviously, we haven't seen the place in the flesh yet so we may change our mind and decide not to put an offer on it, but it would be good to hear from people who've done it before, even sellers and their own expectations. We're so used to hearing about places going above asking price here in London, but this one is just outside.

Thanks in advance!

hazyjo

Previous price paid means nothing. Mine's doubled in four years. All you can do is compare against sold prices of similar properties.


The EAs are obviously trying to make it look popular. Offers on the open day aren't going to help. If you want to go in that much lower, I would be as nonchalant as I could and say yes I'm interested but not at that price. See what they say.


I've seen prices go up again over the last 3-6 months, so it's possible it is up for more as a result of the local market/demand.


Jx

AndyTails

• A vendor who has only just listed their house is unlikely to accept a low offer. What the vendor considers a "low" offer is, of course, unknowable.
• The price they bought it for is only a small part of its worth. Did they somehow get it cheap for one reason or another? How much has the local market moved since they bought it? Much, much, much more important is what prices similar houses are selling (not listed) for. (Although their listing price is a good guide.) Looks like you have that info - good.
• If there's an open day they're probably hoping for lots of offers. In and around London they'll probably get them.
• But most importantly, the worst the vendor can do is reject your offer. They might be slightly peeved if they think you're taking the mick with a low-ball offer, but it's unlikely it'd stop them selling to you if you later came up with an offer you liked.
• Vendors would be very unlikely to accept a higher offer without giving you a chance to up your offer first.

In summary: if you think the house is worth £400k to you, then offering £400k isn't a bad thing. Although if you think the maximum it's worth to you is £400k, I'd start below that.

hazyjo

PS another reason to check the sold prices - several houses went for over their asking price near me. You might be undervaluing it.

martinsurrey

AndyTails wrote: »

• If there's an open day they're probably hoping for lots of offers. In and around London they'll probably get them.
• But most importantly, the worst the vendor can do is reject your offer. They might be slightly peeved if they think you're taking the mick with a low-ball offer, but it's unlikely it'd stop them selling to you if you later came up with an offer you liked.
• Vendors would be very unlikely to accept a higher offer without giving you a chance to up your offer first.

you might be underestimating the pitfall of coming across as serious.

If someone put a lowball offer in on the day of listing, I would be wary of accepting a higher offer later on, It screams a last minute price drop.

lessavyfav

Thanks everyone. All food for thought!

Trying to weigh up between what we think it's worth, and whether many other similar ones will come up over the next few months, so we should just bite the bullet. Will see how we feel on Saturday!

Cakeguts

What someone paid for it 3 and half years ago is irrelevant. What is important is what someone is prepared to pay for it now. You have to compare the asking price to houses selling now.

toddler9

Totally depends on the area and how quickly the vendor wants to sell. We put in an offer on our current house 3 days after it came on the market of 94% of the askinnprive and it was accepted. It was a project, it was a probate sale so they wanted a quick turn around and we were desperate to
Move ��

9ja4life

We live in area where houses could sit on the market for months. We went to view one before it went live. Marketed at £400k. We offered £370k. They said no. A week later, more viewings and no offers, they've come back to ask of our offer is still on the table and give them till the weekend to make a decision.
You'll never know till you make an offer

Whistler23

You also don't need to be pressured in to it being an open house event either. We nearly went to look at one before Christmas with 'a lot interest'. We are now near end of Jan, with another open day having passed, a £20k reduction in asking price and it is still on the market!

I've told the EA 4 times now that we are not interested! They still keep sending info through to me for it.

kinger101

Whistler23 wrote: »

You also don't need to be pressured in to it being an open house event either. We nearly went to look at one before Christmas with 'a lot interest'. We are now near end of Jan, with another open day having passed, a £20k reduction in asking price and it is still on the market!

I've told the EA 4 times now that we are not interested! They still keep sending info through to me for it.

I went to an open house once, and all I heard was people !!!!! how they don't like x and don't like y. Might be a good strategy. Stay there a long time and put the competition off.

Is that woodworm? Hmm, this plaster sounds blown. This wall feels a bit damp