How much (little) to offer?

LEJC

The_Logans wrote: »

Can't stretch to the asking price. Not being greedy or tight, just realistic that most people don't advertise a property at the bare minimum they'd accept.

but whats to say that the vendor doesn't think the price they have set,with the help of the EA,is also a realistic achievement....
...its about reaching common ground and if you can't go to asking price then the vendor may not want to reduce their price...preferring to hold out for someone who will meet expectation or indeed a % rise in market value that equals asking price.

The_Logans

LEJC wrote: »

but whats to say that the vendor doesn't think the price they have set,with the help of the EA,is also a realistic achievement....
...its about reaching common ground and if you can't go to asking price then the vendor may not want to reduce their price...preferring to hold out for someone who will meet expectation or indeed a % rise in market value that equals asking price.

Very true, we can but try I guess. They paid £322k for it in 2006, but they have extended and upgraded it considerably.

Crashy_Time

The_Logans wrote: »

If a house has been on at £499,900 for 4 months. A few viewings but no offers, and no viewings since Christmas I suspect it is overpriced. We like the house, but not the price! How low would you go with an offer?


The house is in fabulous condition , would need nothing done to it at all. A similar sized house within 0.5miles that needs some work has just come on the market at £412500.




PS we are chain-free buyers.

If you can cope with the work needed I would look at the lower priced house, and take time to consider previous sale prices of the house and recent similar sales. If the buyer is looking to double their money or something from a few years ago I would wait for the effects of Brexit/Trump to become more apparent, let sentiment dampen their expectations a bit so to speak. I think rates are going to be driven up by either Trump`s policy or a wider break up of the EZ (return to national currency) or a combination of both. The work needed to make a house liveable for yourself will be different to the standard needed to sell on or rent out, but if it involves more than cleaning, sanding a floor or two, painting, new bathroom/kitchen etc. you should be wary, I have seen the results (when I worked in the building trade years ago) of people taking on self-build or major renovation themselves, one example was a couple with zero building experience attempting a self-build basically from a How-To book, they were doing basically a kit-house which experienced builders could complete in a few days and had been at it for a year when my boss got the call to help them avoid suicide/divorce by completing the roof for them. Very scary stuff, they were totally out of their depth and VERY unhappy with the drama of it all!

iantojones40

LEJC wrote: »

It doesn't really matter what you offer....its what the vendor will accept

Are you willing to start negotiations at 10% lower and risk the vendor thinking you are not a serious buyer or is it a case that actually anything you can manage to shave off the price is a bonus.

is the house actually over your budget or would you eventually go to asking price?
how much do you want that house as opposed to any other......

How do you arrive at the conclusion that an offer 10% below would result in the buyer being labelled as not serious?... When you know nothing at all about this particular house, area or state of the local market?

Or do you just encourage everyone to pay full asking price (or near as makes no difference) regardless of what any given property is actually worth?

The_Logans

Crashy_Time wrote: »

If you can cope with the work needed I would look at the lower priced house, and take time to consider previous sale prices of the house and recent similar sales. If the buyer is looking to double their money or something from a few years ago I would wait for the effects of Brexit/Trump to become more apparent, let sentiment dampen their expectations a bit so to speak. I think rates are going to be driven up by either Trump`s policy or a wider break up of the EZ (return to national currency) or a combination of both. The work needed to make a house liveable for yourself will be different to the standard needed to sell on or rent out, but if it involves more than cleaning, sanding a floor or two, painting, new bathroom/kitchen etc. you should be wary, I have seen the results (when I worked in the building trade years ago) of people taking on self-build or major renovation themselves, one example was a couple with zero building experience attempting a self-build basically from a How-To book, they were doing basically a kit-house which experienced builders could complete in a few days and had been at it for a year when my boss got the call to help them avoid suicide/divorce by completing the roof for them. Very scary stuff, they were totally out of their depth and VERY unhappy with the drama of it all!

Ha! They were ambitious. No it's nothing like that bad, total redecorate, new bathrooms and new kitchen and landscaping outside would sort it. Not sure I have the energy for all that though. I have a 2-year old who doesn't sleep, lol.

LEJC

How far off the asking price are you?

Having renovated a few properties I know the work involved and it would be unfair to compare 2 properties that are in the same area but one renovated and one not.

If you have the funds to renovate property 2 then go for that...it can be a rewarding task...but don't look at property 1 and hope/wish you could get it for the price of the other one....thats not always going to be achievable.

Crashy_Time

LEJC wrote: »

It doesn't really matter what you offer....its what the vendor will accept

Are you willing to start negotiations at 10% lower and risk the vendor thinking you are not a serious buyer or is it a case that actually anything you can manage to shave off the price is a bonus.

is the house actually over your budget or would you eventually go to asking price?
how much do you want that house as opposed to any other......

Don`t worry about what the vendor thinks, many are absolutely desperate for a buyer and will cave in at some point if you stick to your guns.

MyOnlyPost

A house being on the market at £499k and not selling for 4 months despite viewings, is that overpriced? It depends where you are! Where I live £500k would buy a HUGE house which would be in the top 0.05% of local properties probably. Therefore people would view it to see it with no intention of buying. Where you are that could be an avergae family home.

The_Logans wrote: »

Not being greedy or tight, just realistic that most people don't advertise a property at the bare minimum they'd accept.

Your right they don't, some houses sell above the asking price too

The_Logans wrote: »

Can't stretch to the asking price.

You don't mention this in your OP. So it's not how much can you save, it's can you get it cheap enough to afford it.

What's the max you can afford, subtract some to allow you to up your bid if refused. If you offer lower than £450k some sellers may then refuse to deal with you thinking you're not serious and could pull out later on, others would simply decline and invite you to offer more. At the end of the day these decisions of how much to offer are down to the individual which is why I find it curious so many people ask on the forums for advice

LEJC

iantojones40 wrote: »

How do you arrive at the conclusion that an offer 10% below would result in the buyer being labelled as not serious?... When you know nothing at all about this particular house, area or state of the local market?

Or do you just encourage everyone to pay full asking price (or near as makes no difference) regardless of what any given property is actually worth?

Sorry I used it as a fictitious figure plucked from thin air

a buyer offers what a property is worth to them...a seller accepts what they feel it is worth to them....but you clearly know that.

Crashy_Time

The_Logans wrote: »

Ha! They were ambitious. No it's nothing like that bad, total redecorate, new bathrooms and new kitchen and landscaping outside would sort it. Not sure I have the energy for all that though. I have a 2-year old who doesn't sleep, lol.

Work on it at night? Neighbours might not be too happy though...