How much under asking is acceptable to offer?

RoisinDubh_2

steve866 said:

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?

Not very long....4-5 days but there was a buyer and the sale fell through. The story I got from the EA about why it fell through sounded a bit strange to me but basically it's been back on the market for under a week. 

Lease is fine (120 years), service charge is reasonable for London. I'd be looking at another £100-110 or so a month for that. 

nimbo

The offer o had excepted and have since retracted was asking. They wouldn’t go lower. 

I’ve just offered less than 5% less then asking for a property and been told I can wait until Tuesday as they have more viewings and it had just gone on the market. Frustrated. But also now seen a bargain in my ideal village so maybe it’s fate????

RoisinDubh_2

What area are you in nimbo?

Thrugelmir

RoisinDubh_2 said:

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. 

Speak to the EA. That's their role. Takes the emotion out of the transaction. 

RoisinDubh_2

Thrugelmir said:

RoisinDubh_2 said:

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. 

Speak to the EA. That's their role. Takes the emotion out of the transaction. 

I've advised I want to offer and will be making my offer this week. They've asked me to submit via email. Do you mean I should phone them and chat about it, or should I just submit say, 295 and see what they say back?

jimbog

I would email an offer of £290k without saying why that’s your offer. I would however state the position you’re in with regards to being chain free as that might swing it for you

jimbog

What was the reason the EA gave for the previous sale falling through?

london21

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?

What’s the worst that can happen, you get a no.
some of the estate agents can be pushy and discourage offering below asking.

It Depends on supply and demand, if the property needs work for example and not much interests then they will likely accept below asking. 

Thrugelmir

RoisinDubh_2 said:

Thrugelmir said:

RoisinDubh_2 said:

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. 

Speak to the EA. That's their role. Takes the emotion out of the transaction. 

I've advised I want to offer and will be making my offer this week. They've asked me to submit via email. Do you mean I should phone them and chat about it, or should I just submit say, 295 and see what they say back?

In that case submit an email. Then await the vendors response. Before deciding your next move. Ultimately it's a negotiation to see if you and the vendor can come to an agreeable compromise. 

RoisinDubh_2

jimbog said:

What was the reason the EA gave for the previous sale falling through?

It was a bit of a weird, vague story about the corporate vendor and paperwork...raised a bit of a red flag...at what point should I ask again what happened there? Should I make an offer first and see what happens?