Offer price / Over thinking it?

jellybean73

Hi

Need some opinions please.   We’ve viewed a house that does need work, we knew from the photos.  But having viewed it it possibly needs more than we thought. Some urgent; bathroom and boiler.  We’ve done some rough costings for the work (even the work that doesn’t need doing straight away) and it would mean our offer price would be 50k below asking (approx 10%).  We’ve never put in such a low offer before and to be honest feel awkward doing it.  There aren’t many sale’s for this particular street (or nearby for similar houses) to see what house prices are doing.  We do feel even in move in ready condition it feels overpriced by about 15k. It is a good area and the potential to be a really lovely house.  House has been on the market for a couple of months.  

It’s been 20 years since we put in an offer / bought a house.  Not sure if such a low offer is considered too low and we should just walk away?  Or we’re just over thinking it and should go for it?  Thank you! 

youth_leader

If I was the vendor, and had chosen to market at the 'average' price offered to me by the EA, I would think you couldn't afford it. 10% under asking without a survey is far too low.  

gwynlas

If the boiler is currently working then it is not urgent and you really need to have a survey to hand before deciding what is.
It is doubtful that many sellers would accept a 10% below asking price offer but you could try or offer more and renegotiate after survey.
You should be able to judge from EAs listings including sold properties how realistic their pricing is.

Zerforax

If it's been on the market for a couple of months already then I think it's fair to say it is probably overpriced. Whether they will accept 50k/10% off that is a different conversation. Some sellers dont need to sell and others are desperate.

If your heart isn't set on the house then you don't really have anything to lose by the lowball offer? Might prompt a conversation with the estate agent around what the seller is thinking.

TheJP

I dont think an old boiler and cosmetics of the property to your taste warrant a 10% reduction. 

MysteryMe

If you think it's overpriced buy a similar priced house that is in better condition.

mlz1413

So you think:
 its £15k overpriced for better finished house on that street.

But not many on the street come up for sale.

And to you it is worth £50k less than asking price

My opinion on your option is ask EA what offers they have had already. 
I'd assume others have viewed and offered, so as it is still on the market that says to me that the sellers are not in a hurry.

If the sellers are now at a point of reconsidering (2 months in) the price, then you could put in an offer of your 50k less along with your credentials ie cash buyer / your house under offer  + MIP.

But be prepared to be rejected. 

If you can afford the asking price then ask if you can view with a builder who can talk you through what needs doing and what you want doing.  Then put in an offer.

Always remember a house is only worth a certain amount to you. But that may not be the value the seller wants.

FlorayG

Just make the offer you don't have anything to lose. Seller can say a flat "NO" or they can say " We might negotiate" or who knows they may say "yes" if they have a real need to move quickly. I took a 10% reduction on selling my first house - I knew it needed work and the EA knew the buyer (a builder) and assured me he was good for carrying through the sale; but then I had a property I had inherited that I was moving into. If the seller is moving to a more expensive property they may not be able to accept a low offer
Make the offer - as my dad always used to say, if you don't ask they can't say "yes"

bobster2

jellybean73 said:

Hi

Need some opinions please.   We’ve viewed a house that does need work, we knew from the photos.  But having viewed it it possibly needs more than we thought. Some urgent; bathroom and boiler.  We’ve done some rough costings for the work (even the work that doesn’t need doing straight away) and it would mean our offer price would be 50k below asking (approx 10%).  We’ve never put in such a low offer before and to be honest feel awkward doing it.  There aren’t many sale’s for this particular street (or nearby for similar houses) to see what house prices are doing.  We do feel even in move in ready condition it feels overpriced by about 15k. It is a good area and the potential to be a really lovely house.  House has been on the market for a couple of months.  

It’s been 20 years since we put in an offer / bought a house.  Not sure if such a low offer is considered too low and we should just walk away?  Or we’re just over thinking it and should go for it?  Thank you! 

Nothing to lose making the offer. But realistically you should expect some negotiation.

If you genuinely cannot afford the house unless you get it for 10% below asking - I would say it's very unlikely you'll be successful. Most sellers will treat an initial offer as a starting point and want to negotiate up.

RelievedSheff

The house is presumably lived in at the moment? In which case why is a boiler replacement and bathroom replacement urgent?

TheJP

FlorayG said:

Just make the offer you don't have anything to lose. Seller can say a flat "NO" or they can say " We might negotiate" or who knows they may say "yes" if they have a real need to move quickly. I took a 10% reduction on selling my first house - I knew it needed work and the EA knew the buyer (a builder) and assured me he was good for carrying through the sale; but then I had a property I had inherited that I was moving into. If the seller is moving to a more expensive property they may not be able to accept a low offer
Make the offer - as my dad always used to say, if you don't ask they can't say "yes"

Or the seller says no, the OP then ups their offer and the seller sees them as a problematic buyer and declines anymore offers.

OP you need to look at what you realistically can afford, how much you want the house (you say it's the area you want and houses rarely come up) and what you class as needing work from just looking at photos. Is there anyway you can see what similar houses in the area sold for within the last 2-3 years? This could give you an indication of price and condition, zoopla usually holds archive information on properties.