How much under asking is acceptable to offer?

RoisinDubh_2

jimbog said:

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

I would imagine most potential buyers of one-bed flats will be FTB and chain free but no harm in mentioning it I guess?

okigen

One bed flats without garden are really unpopular in London currently. I don't see any harm in offering £20k lower. Worst case if the seller rejects you can up the offer.

If you are not very invested in the flat emotionally, I would be tempted to even wait a few weeks later to see if the seller drops the asking price. Because the property is still quite new on the market the seller may have high expectation, but it will be another story if it sits there a month more. Obviously you'll run the risk of it being taken by someone else though.

RoisinDubh_2

I wouldn't say I'm invested but it's by far the best I've seen and I've seen about 40 now. I had that gut feeling of 'this is really nice' I've only had a couple of times. It's really hard to know what to do. I think I'll go in at 20K under asking and see what they come back with. 

AdrianC

RoisinDubh_2 said:

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?

What happened before is irrelevant.
The wording around the number on the ad is irrelevant.
Percentages are irrelevant.

The very relevant detail here is that it's a corporate vendor...

They care about nothing but the number. No sentiment at all.
If they think your offer is the best they'll get in a reasonable time, they'll accept it.
If they don't, they won't.
If they get a non-trivially higher offer at any stage right up to exchange, expect that you will be gazumped. Going back to the original post...

RoisinDubh_2 said:

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. 

Remember how the market actually works.

There are buyers who have been looking for a while, have seen everything that's on the market now, and are waiting for new properties. They will rush to view when somewhere is first listed.

There are properties that have been viewed by everybody who is currently looking. They are waiting for new buyers to start looking... If you're selling, and your property has fallen into this category, then you can open it up to more buyers by reducing the price - since it's obvious nobody that's currently looking at that price-point wants to pay that price for it...

Crashy_Time

ukri said:

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

Could be if the house was bought for 200k a couple of years ago or something and the seller thinks they are owed a good mark up for "holding" the property? Is there a link to the house, that is the best way for the internet to judge value IMO

theartfullodger

Offer whatever you wish.  About 21 years ago saw a house advertised offers over £xx .

I offered way under - more than 10% off.  Got rudest ever rejection from agent under instruction from vendor, never so insulted etc etc.


I thanked them politely .

A week later made exact same offer, in writing, via solicitor.  Accepted. Sold it 2 years ago 

Offer whatever you wish.  And remember Proudhon's remark!

Newnoel

RoisinDubh_2 said:

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. 

I definitely see the London market picking up. One of my Buy To Lets is in SW11 in a block where flats change hands quite regularly.

Two years ago any decent quality 2 bed was going for just north of £450k, they went down to £375 as Covid restrictions kicked in, and one just sold for £445k, having been on at £425k. From talking to a local EA, he said that business is up as people (and more importantly their jobs) return to London.

Crashy_Time

An EA might just be talking up the market though, it is their bread and butter after all?

peterhjohnson

You're thinking about this to wrong way. By reference to recent comparable sales nearby, work out how much it should sell for. Let's call it £XXX.  That's probably less than the asking price. Put on big boy/girl pants and offer £XXX even if it's a lot less than asking. They may well reject your offer. If you're still keen, make it clear to the agent that you are prepared to pay £XXX. If the house is overpriced, the agent may be able to get the seller to see sense - eventually

ShinyYellowBoots

OP, I remember one of your earlier posts so I know that we were both searching in similar areas and with a similar budget. I've just completed on a two bed that was listed at offers over £310k. My opening offer was around £290k and we ended up agreeing on £300k, so your planned offer doesn't seem unreasonable to me. Good luck!