Offering more than 10% lower after research

GixerKate

Doing your research is useful, at the end of the day though, a property is worth what someone is willing to pay for it so there could be other people out there willing to pay the higher price.

There is no harm in talking to the estate agent and letting them know that you feel that the house is over-priced and putting in your offer.  Out of interest, how long has the property been on the market? 

Speaking as a seller though, I had someone put in an offer 15% lower than the asking price and I rejected it as I had also received offers much closer to the asking price.  The person who offered 15% below the price kicked up a fuss with the EA and seemed pretty insulted that we didn't take the offer!

bravotango

Honestly, as others have said, offer what you think it is worth, and not what others think it is worth.

I'm a FTB too, and in February this year offered £690,000 on a property that was up for £750,000 (I had a feeling it was probably worth around the £735,000  to £740,000 mark, and it transpired it was valued around that mark by my lender), and after a few hours they accepted. So I put in an offer that was £60,000 less than what they wanted.

If the vendor had turned around and said no point blank and were not willing to negotiate then I would have walked.

Just keep it simple!

There is always going to be something available sooner or later, it's just how long you want to wait, and the price you are willing to pay for it

eidand

bravotango said:

Honestly, as others have said, offer what you think it is worth, and not what others think it is worth.

I'm a FTB too, and in February this year offered £690,000 on a property that was up for £750,000 (I had a feeling it was probably worth around the £735,000  to £740,000 mark, and it transpired it was valued around that mark by my lender), and after a few hours they accepted. So I put in an offer that was £60,000 less than what they wanted.

If the vendor had turned around and said no point blank and were not willing to negotiate then I would have walked.

Just keep it simple!

There is always going to be something available sooner or later, it's just how long you want to wait, and the price you are willing to pay for it

yeah, I agree with this. Sometimes sellers are deluded and don't see blinding and expensive issues and still think their house needs to be priced like every other one like it.

I've seen a property I liked, which requires a lot of work and is priced exactly like the ones that are already done up. Made a lower offer, they said no, walked away. Good luck selling and if someone else is willing to over-spend then I am happy to let them.

Requires full electrical re-wire, new boiler, big cracks in the render on top of bricks ( so who knows what's behind that ), water damage around the loft access so roof needs a proper check, bathroom needs replacing, kitchen is old. Sure, some might  say those are no reasons to offer less, but I'd rather offer exactly the same price, on a similar property, in the same area and I don't have to do all that.

bradyhv

MobileSaver said:

bradyhv said:

why would wouldn’t I do research as well as a viewing to the help me reach an offer figure.

"The brutally honest answer is no-one but you cares about your research/evidence/justification and for every reason you can put forward for offering less, the vendor can put forward a reason why their property is worth more. 

To be even more honest, some of your justification is decidedly dodgy; there is simply no comparison between a semi-detached and a detached house. Even more damning is to mention Zoopla; you will be laughed at and not taken at all seriously if you mention Zoopla estimates as they are nothing more than a joke with very limited entertainment value."

"you will probably still be renting and paying your landlord's mortgage instead of your own fifteen years from now..."

Again, I didn't really ask for critique of my research methods I was trying to provide some context of the situation given the fact this will be the first offer we have made as FTB and we are trying hard to gauge what's worth it and whats not as there is fairly minimal guidance in this area. And again as I have already mentioned, at no point have I actually said I would mention any of this to the estate agent as despite your clear assumptions I am fully aware their eyes will just jump straight to the offer figure. Unfortunately the patronizing tone and telling me " I will be laughed at" certainly overshadows any helpful intent you might have had.

Also I am not paying expensive rent to a landlord and paying their mortgage and on some kind of doomed path as you suggest - I still live with my mum and we have a 20% deposit which won't be spent on anything but a home but thanks for letting assumptions cloud your response and being unable to resist making a dig at a stranger asking for help on the internet

danlightbulb

OP you're right to do your research (you've looked at alot of independent sources as well, not 'just relied on zoopla' as some here have jumped to).

Its up to you what you say to the agent, but I see no harm in mentioning the comparators. At the end of the day it has influenced your perspective on what the house is worth. Obviously there is little point labouring the matter - they may just close their minds to it and not care. Or they may be aware of it but 'need' £X for their onward purchase. It's not something you can control so do what you feel is right.

If someone else doesn't do that research and buys it for more either through ignorance or by some internal justification despite the available evidence, well that's on them. Unfortunately people like that have been rewarded over the last three decades, which is the great irony.

Unicorn_cottage

So have you decided to put in an offer? Would be interested to hear how it went?

hazyjo

It really depends how it's done. I've offered well under and given reasons (not immediately, but later when still trying to buy it) which I eventually got.

I've also had someone trying to get me to take a low offer while standing in my house eventually making me shake with anger and I was left in tears after shutting the door behind him and his missus. I told the EA they could offer me a million quid and I'd never sell to them and I didn't want to hear their names ever again.

Crashy_Time

MobileSaver said:

bradyhv said:

why would wouldn’t I do research as well as a viewing to the help me reach an offer figure.

The brutally honest answer is no-one but you cares about your research/evidence/justification and for every reason you can put forward for offering less, the vendor can put forward a reason why their property is worth more. The most obvious one being if a bigger 3 bed sold for less in January then why don't you buy that one instead? Your answer would presumably be "well, that one is no longer for sale" to which the vendor will say "Well, exactly, but mine is for sale and this is the price..."

To be even more honest, some of your justification is decidedly dodgy; there is simply no comparison between a semi-detached and a detached house. Even more damning is to mention Zoopla; you will be laughed at and not taken at all seriously if you mention Zoopla estimates as they are nothing more than a joke with very limited entertainment value.

As pretty much everyone has said, simply offer what you are prepared to pay and if that is rejected then look for another house. Or you could follow Crashy_Time's advice, only offer £200k on a £270k house and refuse to buy until the deluded seller comes to their senses; the only downside to this approach is that, just like Crashy, you will probably still be renting and paying your landlord's mortgage instead of your own fifteen years from now...

The seller is stuck where they are until they find a buyer, the buyer can view hundreds of other properties and most likely find a sensible seller.

MobileSaver

bradyhv said:

certainly overshadows any helpful intent you might have had.

You're welcome!

bradyhv said:

I still live with my mum and we have a 20% deposit which won't be spent on anything but a home but thanks for letting assumptions cloud your response

I apologise that I'm not a clairvoyant; clearly I should have known you were still living at home, silly me! Don't worry though, for those that can't afford to rent or buy, Crashy_Time's new backup plan is living with your parents so perhaps you'll be happy living with your mum for the next fifteen years while you wait for this £270k house to become available for £200k?

Crashy_Time

MobileSaver said:

bradyhv said:

certainly overshadows any helpful intent you might have had.

You're welcome!

bradyhv said:

I still live with my mum and we have a 20% deposit which won't be spent on anything but a home but thanks for letting assumptions cloud your response

I apologise that I'm not a clairvoyant; clearly I should have known you were still living at home, silly me! Don't worry though, for those that can't afford to rent or buy, Crashy_Time's new backup plan is living with your parents so perhaps you'll be happy living with your mum for the next fifteen years while you wait for this £270k house to become available for £200k?

For someone supposedly in their "Forever House" in a rural idyll you sure do have a bee in your bonnet about people cutting their housing costs, and about strangers on the internet who post about it!