How much to offer on property?

Hanuk1987

We’ve viewed a period property in Staffordshire. It’s on the market for just under £150,000. The property is in good condition, neutrally decorated with a nice, fairly new kitchen (owner said it’s 5 years old) and bathroom is nice. The boiler is 2 years old and it has UPVC double glazing, although this is over 8 years old (that’s how long current owner has lived there and they didn’t install windows). There’s a few things I’d want to do to it, as with any house I guess. My own painting etc. The bathroom is downstairs because they needed an extra bedroom - I have no children so would probably move this upstairs and use the current bathroom space as a utility. A 2 bed in the same row sold for £145,000, 14 months ago.
My question is, how cheeky an offer would you make? Everyone keeps saying 10% but that would take me to around £135,000. Is that too low on a house that’s only on for £150,000? Also, the property next door is also for sale, that’s a 2 bed but it’s a rental property and isn’t in the best condition. Would need 2 bathroom ang kitchen and flooring throughout as the whole of downstairs is tiled. This is on for £135,000.

Thanks

jonnygee2

Just offer as little as you think you can possibly get away with.

Maybe sound the EA out first - mention you were thinking it was worth about £135,000 and gauge her reaction. Throw in a load of reasons (it's alright but we'd need to move the bathroom and replace old double glazing etc) - ultimately the reasons don't matter.

If they say no and you can afford more then raise the offer. The only reason not to do this would be if other people are likely to be offering the asking price right now. Given the state of the market you are probably alright on that one.

vw100

Depends on competition from other buyers and how keen you are on securing the sale for you.

lookstraightahead

Agree with Jonny - offer what you like, they put it on the market at what they liked.

Crashy_Time

jonnygee2 wrote: »

Just offer as little as you think you can possibly get away with.

Maybe sound the EA out first - mention you were thinking it was worth about £135,000 and gauge her reaction. Throw in a load of reasons (it's alright but we'd need to move the bathroom and replace old double glazing etc) - ultimately the reasons don't matter.

If they say no and you can afford more then raise the offer. The only reason not to do this would be if other people are likely to be offering the asking price right now. Given the state of the market you are probably alright on that one.

Yep. Go in low.

SandraX

Dear OP

Offer less than what you want to offer to test the water or you may even end up lucky. Then if you need to up your offer, do this with more positives eg you are in a good position, because..............

ATB

Linton

No messing about...
If you really must have the house go straight in at asking price on condition it is immediately taken off the market.
If you would rather like it, go in 5%-8% below. That shows you are serious and gives the vendor some hope he will get close to the asking price. He should make a counter offer and you both agree to split the difference.
If you only want it if it is cheap, go in at say 80%-90%. The vendor will probably reject the offer so you leave it open and continue looking elsewhere.
Otherwise dont bother.

quantumlobster

Linton's advice is good and I would echo it, with the additional caveat that you must be prepared for the circumstance where a very low offer ends your relationship with the seller - i.e. they are no longer prepared to entertain any offers from you.

Whether that's an issue for you is contingent on how much you want this specific property.

todayisagreatday

Would people ever go in at asking price? I mean if it's a competitive market and literally buyers are fighting over themselves then yes I agree, but it sounds like there is a bit of competition, view next door too, and use that as a negotiating tool as well.

I loved my house and knew straight away it was ours but that didn't stop me negotiating like mad, but we were in a strong position and it had been on the market a while. Use the knowledge of why they are selling, length it's been on market and your position to negotiate. You can always go up!

novelty-socks

Was going to say the same thing on asking price - not sure I see the sense in going in at asking price in any market, to be honest. I would always make a lower offer, on the basis that I can always increase it. I think there are generally ways to make a lower offer respectfully that don't run the risk of ending the relationship, as long as your second offer shows that you're serious about the purchase.

And, honestly, if the seller were to say yes immediately, I would consider my initial offer to have been too high.

Even if you really want the house, I think going in lower is a low-risk strategy, particularly in the current market. I'd be putting in a cheeky-ish low offer (10% off seems reasonable), but then be ready to make a significant increase in that offer if/when it got knocked back.

If you don't go in low then you'll never know...

lisyloo

Would people ever go in at asking price?

I received an offer at asking price last year and currently SSTC, but the property has some rareness value for someone that wants that type.


It's a 2-bed retirement flat and most are 1-bed, so the 2-beds only come up now and again.
The person buying it is actually single but clearly values the extra bedroom/dining room.
The buyer is downsizing so perhaps price is less of an issue?
She did also drop her price £20K to complete the chain, so was clearly committed.




Slightly different but I also received a job offer at asking price around the same time. That signalled to me that the other party was committed (and also perhaps money wasn't their top priority).