Making a very low offer

tearfulheart

There's a lovely apartment that has been advertised for £240,000 in a great location in the city centre, to a very well connected train station and the estate agent has stated "offers over" in the advert. Would I be unreasonable to make an offer of £200,000?

Does the estate agent have to respond to be or can they ignore me?

I'm reluctant to put in a higher offer initially because based on Zoopla, the current owners paid: £155,000 2 years ago and the Zoopla estimate for that particular property is £194,000. However, apartments in that building for the same number of bedrooms is advertised as £250,000+.

The apartment itself I basically find perfect. Great view, location, security, seemingly well looked after, etc just too pricey.

Trixsie1989

The agent has to put forward all offers to vendor... They are not obliged to accept though. How long has it been on the market?

paddyandstumpy

Did they buy at £155k and spend money on the improving the property?

Zoopla won't factor this in (because they won't know!) and can be unreliable in this respect.

Davesnave

tearfulheart wrote: »

However, apartments in that building for the same number of bedrooms is advertised as £250,000+.

And how long have they been marketed?


You should be looking at sold prices to see if £240+ is realistic.We can't tell you.


However, a drop from an asking price of £240k+ to £200k is around 17% which is well into serious reduction territory and not very likely unless the vendor is in a tight situation or the market's collapsing.

tearfulheart

I've received potentially conflicting information. On Rightmove, it says the price was reduced in April. When I saw the agent yesterday, he told me that it has only just been put back on the market because the previous potential buyer's mortgage fell through.

tearfulheart

No obvious improvements done. I happen to have a friend staying in the same apartment block so I'm quite aware of the place.

tearfulheart

On Rightmove, it says the price was reduced in April. Though it doesn't tell me when the advert was first put up. When I saw the agent yesterday, he told me that it has only just been put back on the market because the previous potential buyer's mortgage fell through.

I did see the current owners during the viewing, they said have somewhere else to move to "which is the problem". I'm not sure how desperate they are from that slip of the tongue.

diggingdude

Just offer what it's worth to you. If they say no then increase/move on, if they say yes then happy days

csgohan4

I wonder whether it's overpriced which is why the previous buyer couldn't get a mortgage?

MysteryMe

I'd forget about what happened 2 years ago. You are not buying then, you are buying now.

What you do need to concentrate on is what flats are being sold for now and if a previous sale has fallen through because of mortgage difficulties that could indicate that the valuation was below the offer price.

You can offer what you like and without explanation but to be taken seriously as a prospective purchaser it would be best to put forward a reasoned case for offering such a figure.

sal_III

One reason for the low price 2 years ago might be that it was purchased from a relative. check the price history on the other nearby flats to see the real overall trend in the area.

As a Vendor will not entertain 17% underbid unless I need very quick sale and not having any views for a week. So don't be surprised if your offer gets ignored.

Also if you really like the place and in theory are prepared to go near the asking price (say £230k) initial offer of 200k will turn the vendor against you in the future. So for example if someone else offers 228k as a first offer and you offer 230k after initial 200k if I was the vendor I will take the 228k as the chances of you gazumping me are going to be high.