Are we crazy or is offer price unrealistic?

khakitthecat

PasturesNew wrote: »

sq ft is a nice thing to note, I do it myself. But, when it comes to what a place is worth it's about the size to you, how it flows to you, whether it suits your needs.

A bigger place, seemingly cheaper per sq ft, could simply be dismal and laid out poorly....

Look at the property, not the £/sqft. Just be annoyed they want more than others per sq ft, but is each foot nicer?

If you check out the links from @getmoreforless you will see that the property we want is in WAY worse condition, worse layout, and less rooms/bathrooms than the comps that sold for less (per £/sqft) which is why we are so confused.

getmore4less

you offered and then upped the offer they are waiting for more to come.

If the EA has any clue how much you have in the pot and if it is more than your cuurent offer they will have told the vendors.

you will see that the property we want is in WAY worse condition, worse layout, and less rooms/bathrooms than the comps that sold for less (per £/sqft) which is why we are so confused.

Look for something better.

Why there?

Its quite expensive if 2 beds will fetch £1m.

sal_III

khakitthecat wrote: »

Thank you for the reply, agree that there is more than £/sqft however when looking at the property the one we bid on has a worse layout and buildings are right next to each other. Just trying to think if we are missing anything obvious

You are missing the fact that no sane vendor will entertain a 20% / £200k underbid right off the bat. You went in and upped the offer, showing interest in the property, the vendor is simply playing a long game waiting for you to up it again.

Who knows what the motives of the vendor for asking so much are, whether he is delusional or EAs are hyping him up, or he needs the cash for a new property he likes, or he has debts to settle. Doesn't really matter.

What matters is how much are YOU prepared to pay for it. Think of that number, make a final offer and if rejected - move on

Crashy_Time

sal_III wrote: »

You are missing the fact that no sane vendor will entertain a 20% / £200k underbid right off the bat. You went in and upped the offer, showing interest in the property, the vendor is simply playing a long game waiting for you to up it again.

Who knows what the motives of the vendor for asking so much are, whether he is delusional or EAs are hyping him up, or he needs the cash for a new property he likes, or he has debts to settle. Doesn't really matter.

What matters is how much are YOU prepared to pay for it. Think of that number, make a final offer and if rejected - move on

Sane vendors price to sell right off the bat, the others take time to come around to dropping the price...

Like this one shaving over 200k off over a few months, unfortunately still laughably over-priced though......

https://www.rightmove.co.uk/property-for-sale/property-53748651.html

datlex

Sorry but a million pound for a 2 bed property is crazy but I guess that is London prices for you.

khakitthecat

sal_III wrote: »

You are missing the fact that no sane vendor will entertain a 20% / £200k underbid right off the bat. You went in and upped the offer, showing interest in the property, the vendor is simply playing a long game waiting for you to up it again.

Who knows what the motives of the vendor for asking so much are, whether he is delusional or EAs are hyping him up, or he needs the cash for a new property he likes, or he has debts to settle. Doesn't really matter.

What matters is how much are YOU prepared to pay for it. Think of that number, make a final offer and if rejected - move on

Yea fair points, thank you. Our thinking was that since the property had been on the market for three months plus the other factors point to more of an realistic conversation about their offer price. In the end of the day I guess vendor will do whatever they want...

khakitthecat

Thanks everyone for the posts and thoughts. To update our second bid was rejected without a counter bid back. At this point we are going to walk away and hopefully vendor realizes they need to lower their expectations

warby68

To answer the original question, yes 20% under asking for the vast majority of houses will be unrealistic. Being realistic, it may also make the vendor hostile towards you. Whilst really just a business transaction, there is a lot of 'feeling' tied up in residential property deals and people don't like 'silly' (in their view) offers.

It doesn't really matter what its worth or whatever formula you use to justify that. People sell their homes for what they want or need and price them to reflect that. There is usually some margin but not 20%.

No counter offer suggests you are still way off their mark.

Nothing wrong with leaving your offer on the table in case the vendor reviews their position before you find something else but that 20% 'gap' does make this one less likely. You are also right not to offer more than YOU believe its worth (other than the odd few k to get a deal to the finishing line).

Crashy_Time

warby68 wrote: »

To answer the original question, yes 20% under asking for the vast majority of houses will be unrealistic. Being realistic, it may also make the vendor hostile towards you. Whilst really just a business transaction, there is a lot of 'feeling' tied up in residential property deals and people don't like 'silly' (in their view) offers.

It doesn't really matter what its worth or whatever formula you use to justify that. People sell their homes for what they want or need and price them to reflect that. There is usually some margin but not 20%.

No counter offer suggests you are still way off their mark.

Nothing wrong with leaving your offer on the table in case the vendor reviews their position before you find something else but that 20% 'gap' does make this one less likely. You are also right not to offer more than YOU believe its worth (other than the odd few k to get a deal to the finishing line).

People TRY to sell their homes for what they want or need, and more and more end up reducing the price after years sitting on the market.

warby68

Crashy_Time wrote: »

People TRY to sell their homes for what they want or need, and more and more end up reducing the price after years sitting on the market.

Thanks Crashy

I will rephrase, people PRICE their homes for what they want or need.

Some sit for years precisely for the same reason.

Has it really ever been any different - there have always been properties languishing or 'permanently' for sale?

It doesn't make a 20% below offer any more likely to be accepted, whatever you might wish.