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

jonnydeppiwish!

4 houses in the last 13 years bought - supposedly upmarket locations in Chichester Harbour area.

1st at asking FTB (£249k)
2nd was a probate in 2017 @ 15% under (£440k to £375k)
3rd was ex rental in 2021 @ 1.5% under (£335k to £330k)
4th was charity sale post rental @ 13.5% (£550k to £475k)

It’s very little to do with location, more market conditions. Most properties will sell quickly at or over asking if they are priced at or below market value. If they’re above market value, they’re likely to sell below market value.

Key point is, the market changes continuously. If I were buying again now, I’d be looking at offering below asking price as it’s coming to the quietest time if the year and sellers are more desperate to sell (not all though!) Come February half term, I’d be more looking at closer to asking price offers, as there tends to be more buyers.

TheJP

BikingBud said:

youth_leader said:

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.

Why does it need to be justified? And to whom? If you can justify how you came to the offer rather than the OPs 10% standard rule then it is more likely to be considered. If similar properties in the area are selling at a consistent price then the seller may budge.

On the flip side many owners put in that new bathroom and kitchen expecting it to increase the value but are frequently shocked to see the expense they committed in installing their own weird choices makes no difference. Agreed, many people offer a %atge reduction stating new bathrooms/kitchen are needed when it's more taste than anything.

And as to your last point that counters much feedback that we see on here where people often get grief for suggesting that problems found at survey are grounds for price reduction. This depends on the issues, certain issues are usually visible on viewing and at time off offer i.e. old windows etc. Quite often and its more FTBs than others take what's in the survey and the figure quoted as gospel and want that amount reduced from their offer. Experience tells us that surveyors will speculate and highlight it could be an issue which means you need to get a professional opinion in that field to check and quote realistically.

It seems nothing will ever be correct and at the end of the day you need to satisfy your self that your are getting VFM. Offer why you are comfortable with. Good advice

See comments in bold above