advice needed,offers rejected, are we expecting too much?

Doozergirl

I think people expect to be knocked down a bit, but your expectation that all vendors will take a 10% hit is unrealistic. It's an average. It will include properties where people have paid full asking, properties which have been marketed too expensive and then dropped the asking price to eventually accept an offer, and it will include some genuine sales where people have accepted a low offer. But people will and do generally market very close to what they want for a property. As has been said, if they don't need to move, they won't accept a low offer.

Fine if you think a property is only worth a certain price, but you can't apply a 10% discount to every house thinking that is what they are worth and expect them to be happy about it. Nor can you you be miffed after only offering on 3 houses. If you want a property at a knock down price, then you have to be less picky and offer on more. Vendors want best price for them, not for you!

Nicki

My view is that if you are offering less than the asking price you have to both justify why you are doing so (in a nice way) and stress the strength of your position. I wouldn't countenance reducing the price just because someone said they didn't like my kitchen bathroom, etc and were factoring in the replacement value, and would be a bit insulted to be honest. If they said that the other houses in the area were going for x and they thought mine was worth less than this because it had a smaller garden, no parking, worse area, etc, then I would be more inclined to listen. I'd also be more interested in a FTB with guaranteed no chain, who could be flexible about exchange and completion dates, who had mortgage offer at least in principle, and who would commit to doing a survey within a short time frame.

As others say though, not everyone will accept an offer below asking price for any number of reasons. There is a tendency particularly on these boards to regard it all as just being "paper money", but I always looked at it on the basis, I was handing over a cheque to the buyers for the same amount as the reduction, and the amount I was prepared to discount depended on whether I thought they were bona fides or messing around and the strength of their position.

Equally for a property I do like, which I feel is reasonably priced looking at others in the area, I've been prepared to go in at asking price to ensure we get it.

Although we have, once, accepted a below asking price offer btw, we've never actually ended up selling for a sum below the full asking price. The reason we didn't go through with the below asking price offer was that the cheeky so and so's then tried to gazunder us further on the point of exchange.

atrebor

cats! wrote: »

Are you sure the EA's are passing the offers onto the vendors?? Personally I would put a note through the vendor's door confirming the offer and giving your mobile phone number too. Emphasis that you are chain-free and can move quickly!

Good Luck!

Please please never give your numver to a vendor - nice and reasonable people can turn horrid and harrash you and its much better that you leave contact via the estate agent. - its what they get paid for. They are obliged to pass on your offers and you should receive written records of the offer and answer...

dolce_vita

Nicki wrote: »

There is a tendency particularly on these boards to regard it all as just being "paper money", but I always looked at it on the basis, I was handing over a cheque to the buyers for the same amount as the reduction
.

So that makes it "real" does it?

When the account that the "cheque" is drawn on is also imaginary?



That really is flawed logic and shows a misunderstanding of the concept of money.

A view shared by the majority of people I might add.
So you're not alone.

guppy

OP, its early days yet...not everyone has realised that the bubble has burst. Have patience...

cats!

Hi atrebor.

Whilst in an ideal world EA's could be trusted to pass on offers I think, as a buyer, you need to contact the vendor directly in order to receive confirmation this has happened.

Quite frankly if anyone becomes abusive or harrassment occurs simply don't take the call!

macaque_2

emmamc252

The market is very unstable at the moment. US house prices are in free fall. If the pundits (some of whom are very respectable) are to be believed, UK house prices face an even bigger crunch.

So the question is, why are people still holding out for what seem to be absurdly high prices? Part of the answer is greed and the other is ignorance. Ignorance by sellers who have not seen the train in tunnel and ignorance by buyers who don't read the papers.

At a time like this, it is difficult to gauge where the market is going but it is clear that many buyers have decided to wait. In such situations, auctions are useful bellweathers as they are transparent and bring willing buyers and sellers together. Right now properties at auction are selling at discounts of up to 40% to open market prices. For me, that is equivalent a thousand red flags on the beach for would be buyers.

Remember, price is not everything. Some people just want a home to live in, and have no plans to sell other than in the distant future. If you are one of those, you should raise your offer to an amount that secures an acceptance.

If price is important, I would be tempted to set a price target (say 50% of current asking prices) and then sit and wait. You can always review this at any time. I suspect that patience will bring rich rewards. In 2 or 3 years time you may well be able to pick up a home that (compared to today's price) is an unbelievable bargain.

ukjoel

I remember reading a while ago that the average selling price was 96% of the asking price. I think it was quoted by the land registry.

I think the 10% drop quoted in original post could well be based on new build flats and houses where developers put prices sky high when demand is strong but want to clear out and raise cash for next development so then bargain like a car salesman would.

You sound like your looking at older houses which are owned by individuals who a 10% drop is a lot of money. They have probably had 3 quotes from estate agents and checked online to see what similar houses have sold for and think you are being cheeky with your offer.

What you need to remember is this is peoples biggest asset and a percentage here or there could mean they retire a year or two earlier or have the holiday of their dreams. When I bought my first place I ended up spending £500 on the crazy ladys furniture because I needed to keep her sweet. I didnt want it but ironically its still there and doing a good job.

You need to see past the numbers and see the people. I know it sounds crazy but if people like you they are going to want to do business with you.

guppy

ukjoel wrote: »

I think the 10% drop quoted in original post could well be based on new build flats and houses

They already fall by more than this the day after completion!

mr.broderick

A house recently near us up for £229500 which I enquired about at the time and told the estate agent it was overpriced and would consider offering £195000 at the death has just been reduced to offers around £189500. This has happened in a 12 week timespan. This is a beautifully presented 3 bedroom semi detached house in a desirable area for schools etc. Might go and view again and offer £160k !!