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What is the average difference between listed price and accepted offer? £250k budget

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i have a mortgage in principle from natwest, and the most i could afford is 250k (40k deposit). 
My question is this; given that 250k is my maximum budget - is it expected or reasonable for houses priced at 275k to accept offers of 250k? 
Is that unusual, is it normal? What is the general gap between listed price vs offer on houses that are 270-275k?
(yes i know there are tons of other variables, like time its been on market, sales in properties nearby, etc, etc.....  just asking for a general rule of thumb)

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Comments

  • sync94
    sync94 Posts: 58 Forumite
    10 Posts First Anniversary Name Dropper
    There isn't a general rule of thumb I've found - just depends on the factors you've listed and others.
  • SpiderLegs
    SpiderLegs Posts: 1,914 Forumite
    1,000 Posts Second Anniversary Name Dropper
    The answer is 4.3%
  • OldMusicGuy
    OldMusicGuy Posts: 1,768 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 24 August 2020 at 10:57PM
    Sites like getagent.co.uk will show the percentage achieved of original asking price. I don't know how reliable the figures are (they are comparing land registry data with listing data), and of course if a property has been relisted with a different agent at a lower price they won't know what the "original" original price was, but you can at least get a rough idea. 
  • eddddy
    eddddy Posts: 18,011 Forumite
    Part of the Furniture 10,000 Posts Name Dropper

    Well, back in Q1 2019, Zoopla reported that on average, GB properties sold for 3.9% under their asking prices. But a lot has changed since Q1 2019.

    But TBH, I suspect that the average is hiding a lot of variation. When you're looking at a specific house, it's probably more to do with the personal circumstances of the seller and how desperate they are to sell.

    Here's Zoopla's chart:


  • This is what I've done.
    Talk to the vendor and ask boldly what they are looking for, how eager are they to move. What their situation is. 
    Talk to the estate agent to get a handle of what the vendor is looking for. See if stories match, and further more, what their valuation was of similar properties on that street/area. It will give you an idea of what normal is. 
    Always offer below asking price at the beginning. 
    Finally, at the end, if there are other buyers also interested, the agent will give you a ball park of what has been offered and to give your final best offer. You can decide how much you want to bid based on all the information you have. 
    I would say between 5-20k  above asking price is average. 
  • natasha22
    natasha22 Posts: 54 Forumite
    Second Anniversary 10 Posts Name Dropper
    Unfortunately it seems to be really an impossible question.

    Lots of people told me to offer 10% below asking price and see that as the norm but i think thats only in some areas etc. Lots of houses here are selling for above asking price (lots of houses arent though).

    Its a bit like when you look at sale prices sometimes, where they offer 10% discount but the original price is inflated anyway. We've seen houses where they were on for 250,000 and it was optimistic. The house wasnt worth that, had been on for some time and the sellers desperate to move. My offer for that house would be different than for example the house opposite me that was put on for the same ammount, sold instantly and was in general very much worth that money and realistically priced.

    The added complication of course is that you can make a realistic, well thought out and fair offer and the vendor might still not accept it. Theres a local house to us who in my opinion is very very over priced in context of the houses near by, they had offers that were realistic in my view but left the house on the market in the hope of this mystical price. The house is now off the market as they decided to stay rather than accept anything below their asking price.

    Just like you can offer anything, they can decide to accept it.


  • RelievedSheff
    RelievedSheff Posts: 12,691 Forumite
    10,000 Posts Sixth Anniversary Name Dropper Photogenic
    There is no answer to the question you have asked. It all depends on how a property is priced in the market. If the seller is optimistic and has over priced the property to start with then you may get a decent discount of asking price. If it is priced cheap for a quicker sale then you are unlikely to get a large discount off the asking price.

    It all depends on the local marker as to whether your £250k will get a house advertised at £275k but I would say it is unlikely in the current climate that your offer would be accepted.
  • I tried to establish an acceptable offer figure when I started looking a few months back. I quickly found out its similar to establishing the length of a stick. One property we looked at was up for £189k in Jan this year, that dropped to £170k in April and then to £155k in May. I offered £149k and it was accepted. However, that fell through due to poor internet provision.

    I then offered £165k on a £175k property and it was rejected almost immediately (the house is still up for sale). This went on for several weeks with various properties. I found an offer of 5-8% below asking price resulted in a 3% reduction, but no more. The EA worked on the principle that houses were selling on average for 99% of their stated price (a bit exact, but there you have it ). 
  • Just remember that when you apply for the mortgage you will not get the full amount as in AIP. 
  • steampowered
    steampowered Posts: 6,176 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 25 August 2020 at 7:02PM
    The market is fairly hot at the moment due to the stamp duty holiday. I think you'd be lucky to get a property listed for £275k for £250k in most places.

    Personally I wouldn't look at anything more than £250k, remember you need to budget for things like moving costs and conveyancing fees too.
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