First Time Seller - Offer Received, What Now?

WeB

First time seller here. House went on the market around Christmas time at 325K. After 2 viewings in 2 months, we reduced the price to 315K two weeks ago.


Yesterday, we had a third viewing, and received an offer 20 min. after they left our house. Frankly, I was surprised that someone would move that fast. Especially after only seeing the house once. Then again, the place is in perfect condition.


Our potential buyers are cash buyers, the estate agent saw proof of funds, and have offered 300K. Which seems reasonable enough, but from lurking on the forum here, people often seem to get nervous when a first offer is accepted. So I'm wondering what to do next?:huh:
Maybe go back and counter at 307.5K or 305K? Equally, with spring now approaching, I'm pretty confident that we'll get more offers if we wait.
Edit: The reason provided for offering 15K below asking was that it was a second home and they would have to pay more stamp duty.


On a sidenote, we haven't found a place to move in to yet. So in that sense we're not in too much of a hurry. Although we would consider renting - and selling all our furniture as I wouldn't want to keep it in storage.

tizerbelle

If you are in no rush, nothing wrong with saying you're looking for a bit more - the fact they have to pay extra stamp duty is not your problem nor something you need to take into account. If you want £305/£307 I'd push back at "looking for something nearer £310" though

hazyjo

I'd happily offer after a first viewing if I was sure it was what I wanted. I've bought and viewed enough to know. I would arrange a second viewing soon though, probably to bring someone else round like my mum, so don't panic if they do.

Hopefully cash buyers means money in the bank and not 'chain free' as some seem to believe.

Yup, agree - they will think they should have gone in lower. I nearly always come back with a counter-offer, although did accept my last buyer's offer as it was only £5k under the asking price (over £500k) so I didn't really have anywhere to go with that!

I would say to the EA 'it's a little low, can you please ask them for nearer £310k and see what they say' and they will prob come back with £307k-ish. Don't lose sight of just how much even a whole thousand pounds is and what you can buy with that! Easily done when talking in such large figures!

Stamp duty not your prob. They will be paying that whatever they pay for yours! It's not like there's a £300k cut-off and they'll go from paying 1% to 3% if they pay over £300k (at least I don't think there is! And if there was, it would be proportionate rather than on the whole figure! I'm guessing you just mean they'll be paying 3% due to owning two).

pinkteapot

That's a stupid reason given for offering less - not your problem they're having to pay second home stamp duty!

Cash buyers will generally expect a bit off asking price just because they're a better buyer (to you) than someone who needs a mortgage. Process should be quicker and there's no risk of a mortgage refusal.

As above, just go back and ask for a bit more. If they say no, you can still accept their offer. You don't even have to go back to the agent with a whole spiel - agent's job is to say the right things to the buyer to try to get their offer up. They'll know how to have that conversation.

AndyTails

I don't really have anything to add to what everyone else said. But I know it's reassuring to hear lots of people saying the same thing, so I'm posting anyway.

The extra 3% stamp duty is their problem, not yours; it doesn't change how much your house is worth.

Almost everyone expects their first offer to be rejected. Almost no-one will turn around and say "I'm done with this property" if you reject their first offer. The worst that'll happen if you reject their first offer is they'll say "I'm not improving my offer, it's £300k or no sale."

Generally I'd advise: flat out reject first offer, no counter. Then when they come with their second offer, counter. Given your lack of viewings, and their offer being relatively close to your current asking price, this may be a bit aggressive though. I'd advise countering with £310k, and expecting a second offer of £302-305k.

Do not tell your agent how much you're hoping to finally end up on! Your agent's number one priority isn't to sell for as much as possible, it's to sell full-stop. If you tell them "frankly I'd be happy with anything over £300k", they'll suggest to the buyer that their second offer should be £302k. If you just tell the estate agent "The extra 3% stamp duty is their problem, not mine; it doesn't change how much my house is worth. However, I would be prepared to come down to £310k", then the ball is back in the buyer's court, and you may get £305-307k if you're lucky.

WeB

Thank you everyone! And AndyTails, I'm glad you replied even though you didn't think you had much to add! Your answer is almost a playbook for me to follow now, so very helpful.

WeB

Got a new offer of 305K. Thinking about countering with 307, or would you more experienced people accept at this point?

hazyjo

WeB wrote: »

Got a new offer of 305K. Thinking about countering with 307, or would you more experienced people accept at this point?

I'd try for a bit more, but not expect much. Would either ask the EA to push for a bit more, or give a figure like £308k, see what they say.

Crashy_Time

WeB wrote: »

Got a new offer of 305K. Thinking about countering with 307, or would you more experienced people accept at this point?

Take it, looks like the original price was too high, and I hear the Spring Bounce is cancelled this year.....

Hutch100uk

Just to give my experience of this. My buyer offered £220k for my house (on market for £229.950). He said it was his 'full and final offer' so would not negotiate.
I turned him down as I couldn't afford to drop the price.
A couple of months later he came back to ask if I had 'changed my mind' so I counter offered with £225k.
It went back and forward for a while but eventually I accepted £224k.

So, just to re-iterate, noone offers their highest price first, even if they say it is.

Crashy_Time

Hutch100uk wrote: »

Just to give my experience of this. My buyer offered £220k for my house (on market for £229.950). He said it was his 'full and final offer' so would not negotiate.
I turned him down as I couldn't afford to drop the price.
A couple of months later he came back to ask if I had 'changed my mind' so I counter offered with £225k.
It went back and forward for a while but eventually I accepted £224k.

So, just to re-iterate, noone offers their highest price first, even if they say it is.

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