Offering below asking - is this always applicable to all locations?

theonenonly

As a FTB, I'm wondering whether I should look at properties above my max and offer below asking, or if it will be a waste of everyone's time? I see on forums that it is common to go in below asking, sometimes even 10% below.

Now, I'm sure this isn't always applicable, and is region dependent?

Also, the percentage figure depends on price of the house surely? 10% off 400k is a lot more than 10% off a £250k property?

user1977

theonenonly said:

Also, the percentage figure depends on price of the house surely? 10% off 400k is a lot more than 10% off a £250k property?

Not really. 10% is 10%. Valuations don't somehow become more precise the higher you go.

secla

id say more depends on demand in your area. If houses where your looking get a lot of interest and sell quickly its unlikely a low offer will work where as if a property has been sitting on the market for a while it doesnt hurt starting a little bit low and then putting a higher offer in.

Hoenir

theonenonly said:

As a FTB, I'm wondering whether I should look at properties above my max and offer below asking, or if it will be a waste of everyone's time? 

A decent EA won't pass your offer on unless their satisfied that you are a serious buyer. No shortage of window shoppers that do waste people's time. With zero intention of ever making realistic offers. 

penners324

In my area if you offered below asking you'd get laughed out of town

BonaDea

In my area at the moment the only properties selling are the ones taking offers of 5-20% under asking.  

youth_leader

If you have a definite area and style of property in mind and know the postcode, you can see the past sale prices on RightMove.  

If you do offer less than asking because you feel it is overpriced, you can then justify it. 

If you offer under the asking price what reason would you give?  As a vendor I would expect the EA to price my house according to its condition, so would not offer a buyer a reduction for a new bathroom/kitchen, that is personal choice.  It is difficult because it is only when you have offered and had a survey you know the facts.

cymruchris

The house I offered on earlier in the year where asking was £250k - lots of people viewed it in one day, and several offers went in, including mine at asking price. It then went to first and final - and I offered £257k and secured the deal as I was (at the time) highly proceedable. My sale fell through - and it got sold to someone else. I've been watching land registry, and it's actual sold price appeared earlier today - £260,500. So if you'd come in at even a pound under asking on that one you'd have had no chance.

It depends on the property, the area, how long it's been on the market, and the level of interest. 

There are properties still listed now that were listed when I was looking back in March - so there are definitely places that I know would take offers below. 

But as always - you offer what you think it's worth - and how would you feel if you didn't get it for the sake of say £1000. If there are houses you like popping up every other day - then go give it a try. If the houses you like only come up once in a few months - consider offering more.

EssexHebridean

Only view properties above the level you can afford if you are confident that you can handle the situation of finding your perfect property and then not being able to buy it due to the finances not adding up for you. Not everyone over-prices, and as said above, in some areas some properties are likely to go for above asking anyway. 

Rightmove has been mentioned for seeing sale prices, Zoopla also has this and carries links to past listings so you can get an idea what sort of properties have gone at what price compared to asking.

Gentoo365

You don't even need to see sale prices to see what is happening on size of 'discounts' in your area. Just use Rightmove or Zoopla to see the size of price reductions.

In my area it's fairly common for a property to go on at some aspirational price for a week or so and then get reduced, possible further reduction later. 

So if you see a new property come on, then 'below asking' is just jumping ahead and offering the probable asking price in advance of the discount. 

The estate agent when I sold sight out said 'we will set the asking at £x but expect to sell at about £(x-y)'. 

So while things may be different in other parts of UK, offering below asking may still meet the vendors expectations (after a bit of back and forth).

Albermarle

Gentoo365 said:

You don't even need to see sale prices to see what is happening on size of 'discounts' in your area. Just use Rightmove or Zoopla to see the size of price reductions.

In my area it's fairly common for a property to go on at some aspirational price for a week or so and then get reduced, possible further reduction later. 

So if you see a new property come on, then 'below asking' is just jumping ahead and offering the probable asking price in advance of the discount. 

The estate agent when I sold sight out said 'we will set the asking at £x but expect to sell at about £(x-y)'. 

So while things may be different in other parts of UK, offering below asking may still meet the vendors expectations (after a bit of back and forth).

Although every situation will be different, I think your comment in bold reflects the normal situation.
There are figures around for the average discount agreed in recent months. It is usually something like 4%.