Starting point for offer price below the seller's asking price in Berkshire in seller's market 2021

anonvtic

I am going to be viewing a 3 bed house in Berkshire within a mile of train station.  The asking price is below the zoopla average property price for that area (but a shade above Zoopla's lower bound estimate).  I am interested in this property, but for obvious reasons intend to try to buy it for as low as possible.

Now, to avoid the risk of outright rejection, how low can I go for my initial offer, 3% lower, 5% lower, or 10% lower? What's the ballpark that most typical buyers offer?  I just want to get the seller/agent start negotiating. I am a first-time buyer with a mortgage in principle.

steve866

How long has it been on for? How is it priced compared to similar properties? 

RelievedSheff

How is the property priced compared to recent sales in the area? That is the important question. 

Zoopla estimates are very rarely accurate so can be dismissed.

If the property is priced keenly compared to other sales in the area then you have little to no chance of getting it for under the asking price. If the property is valued at the high end of what others have achieved then there is probably more chance of getting an offer accepted below asking price.

Being a first time buyer really isn't anything of an advantage, in fact some would say it is a disadvantage!!

need_an_answer

If its any sign of thie times at the moment I would guess that its likely the property will go for near or even over the asking price if it is in a good area and what a number of people want.

I recently had an offer of 10% over an asking price turned down. 

Thrugelmir

Wait until you've seen the property.  That may determine how much you want it. As that ultimately is what drives many people, their hearts lead the way. 

AnotherJoe

Don't compare to Zoopla. Pointless. Compare to nearby similar houses for sale and been sold. 

anonvtic

steve866 said:

How long has it been on for? How is it priced compared to similar properties? 

Listed at the same price ever since May 01, 2021. So, it's been exactly one month on the market. Is that an indication of something specific?  Based upon this info, shall I start close to Zoopla's lower bound estimate?

steve866

anonvtic said:

steve866 said:

How long has it been on for? How is it priced compared to similar properties? 

Listed at the same price ever since May 01, 2021. So, it's been exactly one month on the market. Is that an indication of something specific?  Based upon this info, shall I start close to Zoopla's lower bound estimate?

If it’s been on for a month in the current market it might be priced on the high end. I would ignore Zoopla’s estimate. Have you found other similar properties that have sold recently that you can compare?

You need to speak to the agent and understand what offers they’ve had, the onwards chain etc. 

If the sellers have found something and need a complete chain they might accept a lower offer.

I don’t think anyone on here can give you advice on what to offer without seeing the specific house. If you wanted a rough rule of thumb then ~5% under asking could be a good starting point. 

Being a first time buyer does put you in a strong position, assuming you have a decent deposit (15% minimum). 

anonvtic

RelievedSheff said:

How is the property priced compared to recent sales in the area? That is the important question. 

Zoopla estimates are very rarely accurate so can be dismissed.

If the property is priced keenly compared to other sales in the area then you have little to no chance of getting it for under the asking price. If the property is valued at the high end of what others have achieved then there is probably more chance of getting an offer accepted below asking price.

Being a first time buyer really isn't anything of an advantage, in fact some would say it is a disadvantage!!

Based on data from HM Land Registry viewed through Zoopla/RightMove, 3-bed terraced property in that area (within 0.5 mile radius) has been sold for 20k to 100k higher in the last 1 year, than the current asking price for this property.

What does this indicate? That the seller is undervaluing their property? Buyers are getting a steal?

ele_91

If you haven’t seen it yet that might indicate there is something putting buyers off that isn’t in the listing!

AdrianC

There is no magic "X%" ruling...

View it.
AFTER viewing it, decide if you like it.

If you really do like it, offer what you think it's worth...

If the vendor disagrees, but not by much, increase your offer - but not so much that you don't think it's worth that.
If the vendor still disagrees, or disagrees by a lot, keep looking.