Overpriced House? How to negotiate...

TobyLarone · 30 October 2017 at 11:58AM

Hi All,

There is a house I am interested in buying however I believe it to be overpriced. It is up for £300k and i would like to put an offer in at £280 but I think this will get laughed at! It's been up for sale for a month, it's been refurbished to a high standard etc but another house in a few doors down sold at £210 in Nov 2015.

Just thinking in 5 years when we may want to move again will we be in negative equity if house prices go down

If anyone wanted to voice their opinion on it I'd be grateful... I'll send them the link on rightmove via PM.

Thanks

bob_bank_spanker · 30 October 2017 at 12:00PM

Just offer £280k if that's what you think it's worth.

hazyjo · 30 October 2017 at 12:00PM

If the vendors are deluded, they are deluded. You might not be able to convince them it's worth less as a buyer if their EA has told them it's worth more (although from my experience, the EA values it lower and the vendors put it up for more to test the market).

You can't compare against Nov 2015. What are similar nearby houses selling for today?

[Deleted User] · 30 October 2017 at 12:01PM

TobyLarone wrote: »

It is up for £300k and i would like to put an offer in at £280 but I think this will get laughed at!

At a drop of £299,720, I would agree.

TobyLarone · 30 October 2017 at 12:02PM

You never know!

TobyLarone · 30 October 2017 at 12:03PM

hazyjo wrote: »

If the vendors are deluded, they are deluded. You might not be able to convince them it's worth less as a buyer if their EA has told them it's worth more (although from my experience, the EA values it lower and the vendors put it up for more to test the market).

You can't compare against Nov 2015. What are similar nearby houses selling for today?

The problem is, there are only 5 or 6 houses in the street making it a difficult comparison. And these ones have a huge back garden, garage etc which others in the area do not.

hazyjo · 30 October 2017 at 12:05PM

Well all you can do then is try an offer (definitely with enough for a counter-offer after your first) and if they don't accept, say you'll let them try and sell but come back to you if they can't and you'll talk again.

Don't mention 'leave it on the table' as it will make it more appealing to others, and it doesn't give you any room to negotiate if you feel the market has swiftly dropped more in the area.

Are you in a position to offer/buy or do you need to sell? If the latter, definitely don't offer yet.

TobyLarone · 30 October 2017 at 12:08PM

hazyjo wrote: »

Well all you can do then is try an offer (definitely with enough for a counter-offer after your first) and if they don't accept, say you'll let them try and sell but come back to you if they can't and you'll talk again.

Don't mention 'leave it on the table' as it will make it more appealing to others, and it doesn't give you any room to negotiate if you feel the market has swiftly dropped more in the area.

Are you in a position to offer/buy or do you need to sell? If the latter, definitely don't offer yet.

Thanks for your thoughts.

Our house isn't even on the market yet...but should be in the next couple of days. I guess this will deter them if they have to wait for us to sell and would more likely wait to see if any other higher offers roll in.

hazyjo · 30 October 2017 at 12:10PM

TobyLarone wrote: »

Thanks for your thoughts.

Our house isn't even on the market yet...but should be in the next couple of days. I guess this will deter them if they have to wait for us to sell and would more likely wait to see if any other higher offers roll in.

Yep. Definitely don't offer low! You're not proceedable. What you will be able to offer will depend on what you're offered.

Hedgehog99 · 30 October 2017 at 12:10PM

It's worth offering, but no, don't be surprised if you are rejected.

You don't know the buyer's situation (urgency to sell, minimum price needed etc).

Your general situation could also be important - how soon you can move, length of chain, mortgage ready to go, willing to go into storage etc.

shortcrust · 30 October 2017 at 12:12PM

Offer what you want, others will do the same. If you're right your offer might be accepted. If you're wrong you'll be outbid or the sellers will wait or come back with a counter offer. You definitely shouldn't worry about being laughed at. Don't spend £20k to avoid feeling a little awkward!:)