Negotiating a purchase price

Jay_En_Gee

Hi all - I’m a first time poster having just read a load of threads about home buying and selling.
Myself and my partner have viewed a property that is on the market for £300k. It was previous on for £320k but that was ridiculously overpriced in my opinion. We like the property and have made three offers - £287,500, £290,000 and £294,000. All of these have been rejected, with the buyer selling they won’t accept any less than £298,000. The EA has told us that nobody else is currently interested in the property and there are no further viewings booked at present. In my opinion, the sellers are being greedy (they bought the house for £200k in 2014 and whilst they have put a single storey extension on the property, there’s no way they’ve spent more than £30k). I originally thought the property was overpriced and told myself I wouldn’t go above £290k, but made the offer of £294k hoping to seal the deal.

For background, my property is SSTC. It was on for £218k and we had an offer of £215k which we accepted immediately. We were willing to accept anything above £210k.

Any advice on how I should play this?

pimento

Their house, they can sell it for whatever they like. If you like the house and want it enough you'll pay the price or you won't. You can't force them to accept your offer.

Jmaho

How do you know how much they have spent on the property? I've had a single storey extension and it cost more than 30k.
I'm assuming that there are similar properties in terms of both size and finish on the market that you would get for the price you want to pay for this one? If so buy one of those and accept the fact that you think this one is overpriced

diggingdude

Hi we have a problem. Our house was on the market £320k but we dropped it to £300k as haven't had offers. This one person is bidding on our house. We have told him we won't go below £300k, He has bid £294k and is insistent that we take it because we are greedy. What can we do to make him understand we will not lower the price further??

Ps - He insulted our new extension which we had saved for

cajef

The choice is you offer them the price they are asking or walk away if they are not willing to accept any lower offers.

We were not in any hurry to sell our last property in fact we agreed we would not move unless we got a certain minimum price, we held out and eventually got what we were asking.

Jay_En_Gee

Good luck selling your home 😂

I see where you’re coming from. I just feel we’ve made a reasonable offer.

I wasn’t insulting the extension at all. I estimated £30k based on similar work I’ve had done myself. It’s not a huge extension and the spec is ok, I just put an educated guess of £30k on it. It may have been more but I wouldn’t have thought it would be significantly more.

jimbog

Jay_En_Gee wrote: »

We like the property and have made three offers - £287,500, £290,000 and £294,000. All of these have been rejected, with the buyer selling they won’t accept any less than £298,000.
Any advice on how I should play this?

An extra £4K is an increase of around 1% from your previous offer and that will seal it - if it's your dream house then that's what you need to do.

You have shown the vendor that you are desparate for their house by giving 3 offers with the difference between the 2nd and 3rd greater than that between the 1st and 2nd. They'll know you will come back with another offer.

As for being 'ridiculously overpriced' you would have paid about 93% of the original asking price so they probably marketed it about right

ec9wrr

A house is only worth what someone is willing to pay and someone is willing to accept.
What they’ve spent on the extension in many cases doesn’t matter. It’s what they’ll accept and what you’ll offer that matters.

diggingdude

Jay_En_Gee wrote: »

Good luck selling your home 😂

I see where you’re coming from. I just feel we’ve made a reasonable offer.

I wasn’t insulting the extension at all. I estimated £30k based on similar work I’ve had done myself. It’s not a huge extension and the spec is ok, I just put an educated guess of £30k on it. It may have been more but I wouldn’t have thought it would be significantly more.

Hopefully they will come through for you

robatwork

You could tell the EA that 294 is on the table until end of play on Friday at which time it reverts to 290.

Depends on things nobody here can possibly know and of course how much you want it.

Crashy_Time

jimbog wrote: »

An extra £4K is an increase of around 1% from your previous offer and that will seal it - if it's your dream house then that's what you need to do.

You have shown the vendor that you are desparate for their house by giving 3 offers with the difference between the 2nd and 3rd greater than that between the 1st and 2nd. They'll know you will come back with another offer.

As for being 'ridiculously overpriced' you would have paid about 93% of the original asking price so they probably marketed it about right

The first post tends to challenge that view, and as the vendor has no other interest in their over-priced house it is more likely to be them who are feeling desperate.