Offer Price Advice

Moneygrabber89

Hi,

So I am looking a few properties to buy after breaking up with partner. We are selling our current property and I will be using my half of the equity to put into a small property.

My question is for some advice when it comes to putting in offers. I know many will say just bid what you think it’s worth but sometimes it isn’t that simple. My worry is putting in an offer so low I offend the sellers.

I.e. I have seen a property which is valued at 90K but I realistically think it is only worth 80K due to needing some modernisation and because off its location directly outside traffic lights. I wouldn’t want to bid below 80K at this may offend but also realise most first offers are rejected.

I also don’t want to start looking at houses and putting in quite a few lower offers on different properties and getting a reputation with the estate agents for somebody who is not willing to pay close to the asking price.

On a side note there are a few houses which say “Offers in excess off” and “offers in the region off”.

On the “Offers in excess off” is it cheeky to offer below this price as again I think the properties are not worth that value? “Offers in the region off” of mean they are willing to haggle a little on price. Correct? Does this mean id be more successful with a cheeky low offer.

hazyjo

Outside traffic lights? It will certainly make it harder to sell in the future. Constant traffic isn't so bad, but when it's starting, stopping and music occasionally blaring when they're stopped, it might be more of an annoyance.

Some say if you don't offend the sellers, you've offered too high

Mind you, you're talking over 10% so I would consider that rather low. If you're going in that low, I'd be tempted to wait for them to drop if they can't sell, THEN offer under that.

No need to fire off a load of offers at once. Be more selective, and wait for a response.

You could of course look at properties up for slightly less in the first place

OITRO often means close to the asking price. Just offer what you feel. If it's rejected, withdraw it and offer again when they drop. If someone comes along and buys it in the meantime, it possibly wasn't overpriced.

Don't be too set on getting a bargain. Not everything is overpriced.

SmashedAvacado

in the long term we will have electric cars and automated vehicles so perhaps a 10 year hold would be enough for you to benefit from what is currently a blight on the property.

There's no such thing as an offensive offer. Go low. Then go a bit higher.

jonnygee2

I know many will say just bid what you think it’s worth

That would be a terrible strategy. You'd never get a bargain if you always offered what you think its worth straight away. Also, what you think it's worth is pointless. You have to figure out what it's worth to the seller.

It's exactly the same strategy as bargaining for anything. You want to offer under the lowest amount you think they would accept. Then reluctantly let them work you up to that amount.

I also don’t want to start looking at houses and putting in quite a few lower offers on different properties and getting a reputation with the estate agents for somebody who is not willing to pay close to the asking price.

If you are scared to negotiate you will end up paying more. Up to you.

lookstraightahead

You are the customer. Change your mindset, it's not a sellers market really.

oystercatcher

jonnygee2 wrote: »

That would be a terrible strategy. You'd never get a bargain if you always offered what you think its worth straight away. Also, what you think it's worth is pointless. You have to figure out what it's worth to the seller.

It's exactly the same strategy as bargaining for anything. You want to offer under the lowest amount you think they would accept. Then reluctantly let them work you up to that amount.



If you are scared to negotiate you will end up paying more. Up to you.

I wouldn't deal with anyone who messed me about with multiple low offers.

Jigglebiz

Having been on the other side of this (selling) and now buying, I say do your research, then make a low offer that justifies itself. General negotiation tips are useful eg. Don’t increase your offer when the agent calls you, only increase reluctantly and offer odd amounts that you justify based on having scraped together all the money you can find. Most importantly, gather as much info on the vendor prior to even making offers. Some of this you can find via Zoopla etc, but also ask the agent why they are selling, have there been any previous offers, etc. Make them wait.

David_McKenzie

I came on looking for similar advice.

I've seen a property that I like, It's for myself as my family home.
It's on the market for £250k and I don't think it is particularly overpriced (it might be slightly).
Then again, I'm not looking to pay what it's worth, I'm looking to pay what I can get it for.

It's been on the market for over a month and it is approaching the time of year when not a lot of property will be shifting

I suggested to my wife that we offer £20k under.
My budget is £240k, so I'd happily agree in the middle but anywhere below my budget is a bonus

My wife doesn't do haggling and is not happy bidding that low and thinks it's an insult. It's 8%, I don't think 8% is overly cheeky. I think she just see's the cash figure and hasn't taken it in context of the value of the property.

I'm not being overly optimistic offering £230k in the hope of getting it for £240k am I?

Jigglebiz

You won’t know until you try. In most parts of the country 8% under is not a low offer. Make sure you do your research on recent sold comparables to back up your case. By starting as low as possible, you anchor the negotiations and are more likely to get it closer to your intended price rather than the asking price.

NaughtiusMaximus

oystercatcher wrote: »

I wouldn't deal with anyone who messed me about with multiple low offers.

I agree. Likewise if I was to list a house as 'offers in excess of' and someone came in with an offer of 5k below that price, I would think '!!!!!! can't you read?' and dismiss them as a timewaster.

SeasideSally

Jigglebiz wrote: »

By starting as low as possible, you anchor the negotiations and are more likely to get it closer to your intended price rather than the asking price.

I don't know about other sellers, but that would never work with us. We're selling two properties, and we know what we want to achieve. No amount of coming in low will knock those goals out of whack. When a buyer hits a number we're comfortable with, we'll accept their offer; not until then.

But personally, I would be offended by a very low offer, and I would be more cautious when dealing with someone who made such an offer, even if they did eventually offer what we're looking for.