How much under asking is acceptable to offer?

RoisinDubh_2

I asked this question as part of another thread a few days ago was surprised to see people thinking offering 6 to 7% below asking was unlikely to get me a property. I had actually thought this was quite a modest reduction on the listed price.

For context, I am looking for a one bed flat in SE London, and the sort of price range I'm looking in is £270-315K. I feel like a lot of vendors are overpricing their properties at the moment and it's not uncommon to see properties stick around for weeks on end or to have huge reductions in price. I've seen places I've had my eye on dropping by 25K after few weeks on the market. 

I've now seen a place I like listed at £310K, and I want to offer £290K. I think this is a reasonable offer given that it's a good walk from the nearest station (15-16 mins), has no outside space and is a bit pricey compared to other similar properties in the area. This is a reduction of just under 6.5% on the price listed, which I think is pretty reasonable, but the replies I got in the other thread have made me doubt myself now.

What do people think?

Doozergirl

Every house is different. Every vendor is different.  Markets are different, but they have been very buoyant of late. 

You only find out by asking.  The worst that happens is that they say no.  

RoisinDubh_2

It seems it's a tale of two halves....the market outside London seems to be booming while in London it's been very slow. 

Will I scupper my chances by going 6-7% under asking? Or is the worst that happens that they will come back and tell me someone else has offered more or they would only accept X amount and then I could up my offer if needed?

Keswick1uk

Recently they'd have you believe everything was going for offers over. However, as the prices are being released, that's not always the case.

Our neighbours who went on at 425 and said they didn't want to move and would only go for full price and that's what they were offered,  it seems they sold for 395! Others have also sold cheaper than marketed. Albeit the marketed prices were high!

So I think it's impossible to call. You just have to offer what you think. At a stupid time in the 90s we bought here for 75 off a (sticking for 9 months price) of 120 - so you never know! Offer what it's worth to you, perhaps less a bit unless you are likely to.lose it due to many looking to buy it.

ukri

There is no generic answer to your question as there a lot of dependencies not least if the vendor is serious, how badly they need to sell and what’s the floor that they cannot go below. None of these will be easily revealed to a buyer.

RoisinDubh_2

I think above £300K is a bit much for a one-bed flat in Zone 3 15 mins from the nearest station BUT it is a very nice building and flat. So that's making me wonder a bit. It's hard to compare it with other places I've seen because it's a totally different type of property (period as opposed to purpose built). 

Even going right up to £300K would put pressure on my budget, so I'm thinking £290K would be better, but perhaps the vendor would see it as insulting if the guide price is £310-315? I just don't know.

ukri

I personally don’t think 290k is a “silly” offer if asking is 310k.

Redwino222

Offer what you believe it is worth to you.  

They can only say no.  Of that happens you can consider if you want to increase or walk.

steve866

How long has it been on for? If it’s been on for a couple of weeks plus then offer £290 with a view to get it at £295. What’s the service charge and lease situation?

Crashy_Time

RoisinDubh_2 said:

I asked this question as part of another thread a few days ago was surprised to see people thinking offering 6 to 7% below asking was unlikely to get me a property. I had actually thought this was quite a modest reduction on the listed price.

For context, I am looking for a one bed flat in SE London, and the sort of price range I'm looking in is £270-315K. I feel like a lot of vendors are overpricing their properties at the moment and it's not uncommon to see properties stick around for weeks on end or to have huge reductions in price. I've seen places I've had my eye on dropping by 25K after few weeks on the market. 

I've now seen a place I like listed at £310K, and I want to offer £290K. I think this is a reasonable offer given that it's a good walk from the nearest station (15-16 mins), has no outside space and is a bit pricey compared to other similar properties in the area. This is a reduction of just under 6.5% on the price listed, which I think is pretty reasonable, but the replies I got in the other thread have made me doubt myself now.

What do people think?

Use PropertyLog and you will see people knocking 50k or even 75k off the price, and it still sitting there.

RoisinDubh_2

ukri said:

I personally don’t think 290k is a “silly” offer if asking is 310k.

It says 'guide price' is 310 to 315 and I'm thinking of offering between £290 and £295.