Could I offer bellow 10% of the asking price

jasmine1994

Hello

I'm a first-time buyer, looking to purchase a flat with my boyfriend (also first-time buyer). We are trying to decide what to offer on the property.

The flat is listed for £185,000. It was reduced in September 2017 and had been originally listed in may 2017 for £190,000. So it has been on the market a very long time considering how quick the Bristol housing market moves.

The seller is currently renting the flat (will be sold with vacant possession and we wont be signing anything until he is out) and their reason for selling is that they are moving abroad.

So considering that; it hasn't sold for over a year at the asking price, the exchange rates for the pound are getting worse, that we are no chain first-time buyers who could move straight away do you think we could make an offer of more than 10% off of the asking price? ...say £162,000?

Mojisola

jasmine1994 wrote: »

The flat is listed for £185,000. It was reduced in September 2017 and had been originally listed in may 2017 for £190,000. So it has been on the market a very long time considering how quick the Bristol housing market moves.

The seller is currently renting the flat (will be sold with vacant possession) and their reason for selling is that they are moving abroad.

So considering that; it hasn't sold for over a year at the asking price, the exchange rates for the pound are getting worse, that we are no chain first-time buyers who could move straight away do you think we could offer below 10% the asking price?

Are you sure there isn't something else wrong with it that more experienced buyers are spotting and you aren't?

I'd be concerned that the tenants are still there - it can take a very long time to get tenants out.

EachPenny

jasmine1994 wrote: »

The seller is currently renting the flat (will be sold with vacant possession) and their reason for selling is that they are moving abroad.

In part it will depend on how long the current tenant has before they move out.

If the LL has just renewed their agreement for 6 months they might not be in a hurry to sell. If the tenant is moving out next week then a tempting offer might be snapped up.

If they were in a real hurry to sell then it is likely the property would now be empty, and offered at a further reduced asking price.

jasmine1994

It does need redecorating, a new kitchen and bathroom. The estate agent is pretty rubbish. It is also described as a grade two listed building in its description which it is not.

We have had family come and view and they can't see an issue with it (all homeowners).

From what we have been told the tenant was only meant to be there for 4 months but extended it to 6. He has his own property but is having it renovated so is renting the flat so he has somewhere to stay. So hopefully he wouldnt be an issue.

AnotherJoe

You can offer however much below AP you want. You could offer a fiver.


What they will take is a different matter. The fact its been for sale for a year makes it more likely there's something wrong with it, or with the sellers price expectations or needs. After all reducing by 2.5% or so hardly shows signs of desperation to sell. Why haven't they dropped the price by much more if they are that keen to sell?
Something wrong with it could be as simple as having an existing tenant putting most buyers off.

In your place I'd compare to similar and offer under those to give you room to come up.

If you can buy similar for say £170k, offer £160k. Dont be guided by its price that may be unrealistic.
Of course if similar are going for £190k they are unlikely to budge below AP.
Theres also a danger if they dont get the price they want they will just continue to let it out..

moneyistooshorttomention

Not less than £18,500 - errr....no.

You could try an offer for a few thousand £s less however.

nettie1xoxo

You should go for it, what do you have to lose! It starts the negotiation. Our house is just on the market, prob valued to high by the estate agent so we would be happy with silly offers, they start the conversation.

That said, I have seen some people on here that are so insulted by low offers they more or less bar that person from any other offers!!! A bit stupid but each to their own!!

25_Years_On

When me and brother sold our parents place we new we would get offers below the asking price. It was price about 5% higher than what we really wanted. We were offered about 9% lower and negotiated the final price to 6.6% lower than the asking price.


I thought all estate agents priced things higher to "test the market" and to leave room for negotiation. The price of comparable properties is probably a good guide.

EachPenny

jasmine1994 wrote: »

So considering that; it hasn't sold for over a year at the asking price, the exchange rates for the pound are getting worse, that we are no chain first-time buyers who could move straight away do you think we could offer below 10% the asking price?

I missed that bit first time round.

Don't assume the vendor is selling and taking the money overseas. They might have funded the purchase with a big mortgage, possibly topped up with loans, so the sale in £'s (whenever it happens) will just clear debts in £'s.

Having a large debt on the property would also be another good reason for them to want something very close to the asking price.

EachPenny

nettie1xoxo wrote: »

You should go for it, what do you have to lose! It starts the negotiation. Our house is just on the market, prob valued to high by the estate agent so we would be happy with silly offers, they start the conversation.

That said, I have seen some people on here that are so insulted by low offers they more or less bar that person from any other offers!!! A bit stupid but each to their own!!

Not necessarily. If someone offers £30k under the asking price I would wonder about their ability to afford the property if they came back with an offer only £10k under. Where did they suddenly get the extra £20k? And will it vanish again before the sale completes?

Rather than 'stupid' it might simply be a choice to not entertain timewasters.

Cakeguts

jasmine1994 wrote: »

It does need redecorating, a new kitchen and bathroom. The estate agent is pretty rubbish. It is also described as a grade two listed building in its description which it is not.

We have had family come and view and they can't see an issue with it (all homeowners).

From what we have been told the tenant was only meant to be there for 4 months but extended it to 6. He has his own property but is having it renovated so is renting the flat so he has somewhere to stay. So hopefully he wouldnt be an issue.

How long are you prepared to wait? It might take him a year to save enough money to renovate his own property. If he doesn't leave when the 6 months has ended and they issue a section 21 it could easily take close to a year for them to get possession.



It is really not just about the offer level but also you deciding how long you want to wait. Are you likely to see a better property in the year that you are waiting for the tenant to leave?