Reasonable offer?

propertyrental

almightybear said:

....

One were viewing tomorrow has every thing we want then you'll need to be prepared to offer an amount the seller will a) take seriously and b) accept or at least negotiate on

but the house is smallish but there is only 2 of us .irrelevant so far as price is concerned All the walls have been painted white . So what? This is superficial and has little impact on the market value (though does make changing the colour yourself easier)

New (cheap) but nice looking kitchen As above some cupboard doors not fitted that great . As above - easy to fix once you own. 

New cheap carpets . as above

Massive buiding (30ft/40ft)at the end of a west facing garden that might affect the property's desirability and hence value - but if you are still happy to buy/live there then clearly its impact is minor

Would 7.5% under the asking price be reasonable? This wold be around 20k under

My maths is poor - £20K under what?

In any case there is no formula for what % below asking price is 'reasonable'. It depends on the market, whether the seller originally priced the property realistically, what the competition is. how much you like/love the house, how disappointed you'd be to lose out on this one, whether you can easily find another property you like as much.......

Offer too low and the seller won't even bother to counter-offer.

sheramber

propertyrental said:

almightybear said:

....

One were viewing tomorrow has every thing we want then you'll need to be prepared to offer an amount the seller will a) take seriously and b) accept or at least negotiate on

but the house is smallish but there is only 2 of us .irrelevant so far as price is concerned All the walls have been painted white . So what? This is superficial and has little impact on the market value (though does make changing the colour yourself easier)

New (cheap) but nice looking kitchen As above some cupboard doors not fitted that great . As above - easy to fix once you own. 

New cheap carpets . as above

Massive buiding (30ft/40ft)at the end of a west facing garden that might affect the property's desirability and hence value - but if you are still happy to buy/live there then clearly its impact is minor

Would 7.5% under the asking price be reasonable? This wold be around 20k under

My maths is poor - £20K under what?

In any case there is no formula for what % below asking price is 'reasonable'. It depends on the market, whether the seller originally priced the property realistically, what the competition is. how much you like/love the house, how disappointed you'd be to lose out on this one, whether you can easily find another property you like as much.......

Offer too low and the seller won't even bother to counter-offer.

You could also add depends on how desperate the vendor is to sell. Do thye have an onward purchase?

Veteransaver

TheJP said:

almightybear said:

Hi. Im looking to buy my first house with my partner . 

Weve veiwed a few properties with 2 more viewings tomorrow.  

One were viewing tomorrow has every thing we want but the house is smallish but there is only 2 of us . All the walls have been painted white . New (cheap) but nice looking kitchen some cupboard doors not fitted that great .  New cheap carpets . Massive buiding (30ft/40ft)at the end of a west facing garden 

Would 7.5% under the asking price be reasonable? This wold be around 20k under

You need to do some comparison to similar properties in the area. White walls and a cheap kitchen don't warrant a £20k reduction. You are an FTB, for many seasoned sellers you are a red flag. Do your research before you make a rod up your own back as a sensible buyer. 

You are thinking 7.5% reduction for white paint and in your view a cheap kitchen before you even entertain a survey, i wouldn't even reply to your offer. This approach also puts you in a difficult position if the survey brings up something more serious and you want more money off, the seller will likely move on if this is the case.

Why are they a red flag as a FTB? No chain, many sellers prefer them.

BarelySentientAI

Veteransaver said:

TheJP said:

almightybear said:

Hi. Im looking to buy my first house with my partner . 

Weve veiwed a few properties with 2 more viewings tomorrow.  

One were viewing tomorrow has every thing we want but the house is smallish but there is only 2 of us . All the walls have been painted white . New (cheap) but nice looking kitchen some cupboard doors not fitted that great .  New cheap carpets . Massive buiding (30ft/40ft)at the end of a west facing garden 

Would 7.5% under the asking price be reasonable? This wold be around 20k under

You need to do some comparison to similar properties in the area. White walls and a cheap kitchen don't warrant a £20k reduction. You are an FTB, for many seasoned sellers you are a red flag. Do your research before you make a rod up your own back as a sensible buyer. 

You are thinking 7.5% reduction for white paint and in your view a cheap kitchen before you even entertain a survey, i wouldn't even reply to your offer. This approach also puts you in a difficult position if the survey brings up something more serious and you want more money off, the seller will likely move on if this is the case.

Why are they a red flag as a FTB? No chain, many sellers prefer them.

Usually because they get spooked by perfectly normal survey results and/or have unrealistic expectations.

Veteransaver

If you don't ask you don't get. Market is pretty depressed in most areas. 7.5% off, or even 10% in current market isn't a terrible starting point in my opinion. I put in an offer 10% under on my last house and settled at about 7.5%
I wasn't an FTB either, and property hadn't even been on the market that long.

pjs493

Just to add to what I've written above about my own experience. Make an offer that you think is reasonable and politely explain how you came to that figure. For example, when I made my offer I mentioned I'd looked at the prices of other similar properties currently on the market and recently sold, length of time it had been on the market, mentioned the work that needed doing to the property, etc. It may have helped that the agent had shown me around another very similar property nearby that was in immaculate condition but on at a lower price (it was also slightly smaller). So in comparison, my offer seemed reasonable given the work required on the property I chose.

I considered my offer somewhat cheeky at 10% under an 'offers over' price. But when the agent called me following my email, it was clear that she realised from my email that I was making a serious offer and she must have thought it reasonable. She confirmed my buying position (cash buyer) and said she'd try to get in touch with the vendor. 

After presenting the offer to the vendor she called me back, asked if there was any wiggle room, and reminded me that the asking price had already been reduced. Rather than blurting out my upper limit, I asked her what the vendor was suggesting (this was lower than my upper limit), I then countered with an offer 2/3 between my initial offer and the vendor's suggestion. She called the vendor, and then rang me back to tell me the vendor had accepted my second offer. Ultimately I got it for 7.5% below the 'offers over' price, and my tactic during the negotiation phone call saved me tens of thousands.

All of this happened within a couple of hours on a Sunday afternoon. I was very surprised it happened so quickly and expected the vendor to sit on the offer at least overnight. I then showed just how keen I was to move things along by appointing a surveyor and conveyancer the next day.

I guess all of that is to say, make on offer based on what you think the house is worth, set an upper limit if it goes to negotiations. Do your homework and make an offer that factors similar properties nearby, condition, etc. Estimate the costs involved in doing any work that might need doing immediately.

I also made my offer conditional on the property being withdrawn from the market with no future viewings, subject to us agreeing fixtures and fittings, and conditional on the results of the survey. This means if any major work is identified by the surveyor, I can further negotiate.

TheJP

BarelySentientAI said:

Veteransaver said:

TheJP said:

almightybear said:

Hi. Im looking to buy my first house with my partner . 

Weve veiwed a few properties with 2 more viewings tomorrow.  

One were viewing tomorrow has every thing we want but the house is smallish but there is only 2 of us . All the walls have been painted white . New (cheap) but nice looking kitchen some cupboard doors not fitted that great .  New cheap carpets . Massive buiding (30ft/40ft)at the end of a west facing garden 

Would 7.5% under the asking price be reasonable? This wold be around 20k under

You need to do some comparison to similar properties in the area. White walls and a cheap kitchen don't warrant a £20k reduction. You are an FTB, for many seasoned sellers you are a red flag. Do your research before you make a rod up your own back as a sensible buyer. 

You are thinking 7.5% reduction for white paint and in your view a cheap kitchen before you even entertain a survey, i wouldn't even reply to your offer. This approach also puts you in a difficult position if the survey brings up something more serious and you want more money off, the seller will likely move on if this is the case.

Why are they a red flag as a FTB? No chain, many sellers prefer them.

Usually because they get spooked by perfectly normal survey results and/or have unrealistic expectations.

The very fact they want to drop 7.5% asking price due to carpet and a kitchen that doesn't fit their style, that's a red flag for me. This forum is rife with seasoned sellers who would dodge an FTB, often have unmanageable expectations of buying a house and once the survey comes in then its a different story.