90% of Asking Price Offers

Nearlyold

We've offered 10% below and been accepted in the past.  It all depends on how keen the vendor is to sell, whether it was overpriced to start with etc. Probate sellers worried about having to start paying Council Tax, unoccupied insurance etc are often open to a cheeky offer if the property is not shifting. 

Obviously your position is an important factor you need to be ready to buy with deposit, able to get a mortgage etc

Elliott.T123

There are no hard and fast rules with house buying. Although it is a business transaction because it is a business transaction between two individuals (or two family groups) emotions do come into it in a way B2B transactions do not.

Some vendors would rip your arm off for 10% below, some will huff and puff and accept, some will turn round and give a counter (say 5% below) and some will flat out refuse.

I don't think 10% below is so low as to insult most vendors so is absolutely worth a try, all I would say is don't expect to be successful that often and if you are not willing to negotiate then you do need to be slightly wary of alienating estate agents. If you make 10 offers 10% below (all are rejected) and you do not negotiate up on any then estate agents are going to start thinking you are a time waster and not call / show you round etc.

From a personal perspective, when I put my last house on the market 2 years ago I told the estate agent not to even pass on any offers that were less than roughly 96% of asking and reject them instantly, I knew the house would sell easily, I didn't need to. Different time and economic situation, I may drop that to 90% say. 

p00hsticks

Flugelhorn said:

Not being the slightest bit interested in electric cars, I am bemused by the essential criteria but hey we all look for different things

I think it depends exactly what the OP means by 'nowhere to charge and electric car'.

 If they're turning down properties just because they don't already have a charging point then I'd agree that they're probably severely restricting their options unnecessarily, as I suspect the majority of properties still don't. . 

But if they means that they are excluding properties with no private driveway, garage or parking space for a car to stand while being charged and at other times, then it seems a sensible criteria to have if you own a car. 

RHemmings

Thanks @Nearlyold, @Elliott.T123, and @p00hsticks. 

I have asked an estate agent what sort of offering behaviour by potential buyers annoys them. They said that if someone makes offers on far too many properties, then that will annoy them. And in particular if a buyer makes an offer, it's accepted, but then the buyer immediately backs off and withdraws the offer. I'm confident that I'm going to avoid those. 

There is a story on this forum somewhere in the past (I've done a lot of forum searching) where somebody said that an estate agent was bothering them to go view a home. They responded to the estate agent that the property was overpriced and any offer would be much less than asking. The estate agent asked them to view. They did. They made a low offer, and the estate agent got bent out of shape. Later on when the poster asked the estate agent for a house viewing, the estate agent got shirty and was making comments about making low offers. 

In terms of the electric car - the second option. I'm concerned about properties where it is not possible to install a charging point. For most houses it's possible. Terraced houses with no front of house parking (on the property), some flats, etc., it could be very difficult. I have read advice about draping charging cables across public footpaths, applying to dig tunnels on estates/private roads, etc. I don't want to do any of that. But, installing a charging point in a house if no cables go onto publicly accessible footpaths, etc: no problem. 

I agree that emotions play quite a part in things, including my own. I thought I had found a really great property for me, but it had sold one day before. That dampened me quite a bit and affected subsequent viewings that I compared to 'the one that got away'. 

I would have no problem with an offer not being accepted. Or even being dismissed out of hand. But, I want to appear to be the serious house buyer that I am and not insult the seller. (Though, I'm sure that there will be some who will be insulted by any under asking price offer.) I'm not expecting to have a high probability of getting such an offer accepted. 

In terms of the reasons for vendors selling, I've found a number of properties that are being sold because the owners have gone into care, and the houses need to be sold to pay the care home fees. One of those eventually sold for what I consider to be quite a bit under market value. But, that home was disadvantaged by being sold by 'modern method of auction'. It's a really nice home, and viewing it I thought 'oh wow, I can afford to live in a house like this.' But, there will be more. The sale price, BTW, was quite a bit less than the EA told me the vendors would accept. That's part of what got me thinking. 

Herzlos

Thanks for this. I'm looking at one property in general, but it's just had its price reduced by 10K, and the estate agent says that she believes it will sell quickly at the new price. If it is still there (and I am still looking - viewing on Saturday and other viewings requested) in some weeks time, then I plan to formally put in a 90% offer on this property. The property I'm looking at on Saturday is within my budget and I would probably offer asking, but I suspect it has nowhere to charge an electric car. In which case: no offer at all. 

If you like the house then you're best to just put the offer in quickly. You don't want to risk losing it to someone else who offers 10% under.

The buyer may then do one of the following:

1. Accept it. 

2. Refuse it.
3. Make a counter offer.
4. Sit on it for a while and if they get no other interest in the next few weeks accept it.

RHemmings

Herzlos said:

If you like the house then you're best to just put the offer in quickly. You don't want to risk losing it to someone else who offers 10% under.

The buyer may then do one of the following:

1. Accept it. 

2. Refuse it.
3. Make a counter offer.
4. Sit on it for a while and if they get no other interest in the next few weeks accept it.

Thanks. I sort of did offer on Saturday, but not officially. I think I'm going to leave it a few weeks, and then ask (knowing the answer) if the property is sold. If not, then I'll ask for a viewing. And then offer. If the property goes in the meantime - it goes. One thing I've worked out about myself - I'm not fussy about properties and there are plenty that are suitable for me. 

I have read about people who made offers, were laughed at, but some time later received a phone call asking if their offer was still valid. 

I do agree that what you say is true, but I feel I'm in a 'position' on that one, and want to be in a stronger position which I will only be in if the EA's prediction of a quick sale is wrong. 

peterhjohnson

Yes! I once offered 81% of the asking price on a house that I felt was overpriced. I eventually bought it at that "discount"

RHemmings

peterhjohnson said:

Yes! I once offered 81% of the asking price on a house that I felt was overpriced. I eventually bought it at that "discount"

Thank you. If possible, I'd like to know more about what happened between your offer, and the final acceptance. E.g. how long, and whether there were any waiting gaps. 

BobT36

There is no fixed %. You offer what YOU think it is worth, then the other side can either accept or reject that. 
You can then either counter offer or walk away. 

Vendors were absolutely happy and loving it when getting loads of offers well over "asking" in the recent years when the market was great. They can't now start complaining now cost of living and umpteen interest rate rises are happening.. 


Anyone who gets "shirty" can just be ignored, it's YOUR hard-earned money. I really don't get how people are advised to do their research and really be sure when buying random crap on Amazon, but then expected to just drop half a million quid within a few minutes without thinking on a house, and be happy to do so, just because someone else "demands". 

RHemmings

BobT36 said:

There is no fixed %. You offer what YOU think it is worth, then the other side can either accept or reject that. 
You can then either counter offer or walk away. 

Vendors were absolutely happy and loving it when getting loads of offers well over "asking" in the recent years when the market was great. They can't now start complaining now cost of living and umpteen interest rate rises are happening.. 


Anyone who gets "shirty" can just be ignored, it's YOUR hard-earned money. I really don't get how people are advised to do their research and really be sure when buying random crap on Amazon, but then expected to just drop half a million quid within a few minutes without thinking on a house, and be happy to do so, just because someone else "demands". 

Thanks. In general I agree with you. But, there are some specific examples where it's a bit different. While my budget is currently limited, there are some properties that I believe are worth higher than the 90%. I.e. I'm not offering what I think it's worth, but less. Deffo cheeky offers.