Offer price / Over thinking it?

bobster2

TheJP said:

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.

It is very normal to make an offer as a starting point - and then up that offer at least once during negotiations. Does not make anyone a problematic buyer. As a seller - I would view a buyer who refused to increase their offer at all as more problematic.

Houses sell (complete) on average for 3-5% below asking price - and it's very common to arrive at that point through though an offer / counter-offer process.

Linton

There is no point in putting in an offer that you believe the seller is very likely to reject. Negotiating a deal is about finding the sweet spot where both sides are happy, not about beating one side into submission or trying to prove a point. If you do make an offer the seller rejects you are starting off at a disadvantage.  Offer something reasonable for the area and if that is too expensive look elsewhere.

BikingBud

Kite flying is a thing.

If the OP has a total budget to buy and establish it as their home then that is a fact.

Make an offer within that budget and ensure you have headroom for contingencies.

caprikid1

"Just make the offer you don't have anything to lose. Seller can say a flat "NO" or they can say " We might negotiate""

I think many fail to grasp this is an emotional negotiation between two people who are most likely in experienced negotiators.

Starting off with a low offer , where the seller could firmly believe they have priced in the work identified could put you on the back foot, when I last sold a house the estate agent only told me about the low ball offers after the house sold, they knew they were off the mark and not acceptable.

You have nothing to lose... you have the chance to lose credibility and the option to negotiate further.

There is a lot of trust on both sides in the house buying process and many will be concerned about last minute gazumping of someone they perceive as starting to low. I don't feel you have justified £50K off and nor will the sellers. With interest rates coming down this will warm the market and make this house affordable to more people.

TheJP

bobster2 said:

TheJP said:

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.

It is very normal to make an offer as a starting point - and then up that offer at least once during negotiations. Does not make anyone a problematic buyer. As a seller - I would view a buyer who refused to increase their offer at all as more problematic.

Houses sell (complete) on average for 3-5% below asking price - and it's very common to arrive at that point through though an offer / counter-offer process.

I think you missed my point, making a first offer at 10% below asking with no other reasons that you think there are issues from photos would make the OP come across as unrealistic. Even 5% is quite a stretch to go in at.

bobster2

TheJP said:

bobster2 said:

TheJP said:

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.

It is very normal to make an offer as a starting point - and then up that offer at least once during negotiations. Does not make anyone a problematic buyer. As a seller - I would view a buyer who refused to increase their offer at all as more problematic.

Houses sell (complete) on average for 3-5% below asking price - and it's very common to arrive at that point through though an offer / counter-offer process.

I think you missed my point, making a first offer at 10% below asking with no other reasons that you think there are issues from photos would make the OP come across as unrealistic. Even 5% is quite a stretch to go in at.

As I said - houses sell (complete) on average for 3-5% below asking price. So if there's going to be an offer - counter-offer process to get there then the initial offer will need to be lower than this. 7-8% might be typical. I agree 10% might be seen as too low and suggest to the seller that there might not be any point in negotiating.

My most recent experiences...

As a buyer - initially offered 6% below asking - completed 3% below. Got there in 2 steps.

As a seller - initial offer was 8% below asking - completed 4% below asking (I'd priced it expecting to end up close to this).

uralmaid

You don't say whether you are in a position to proceed - ie you have no house sale dependent on being able to move.  If you do need to sell in order to buy then no vendor will take such a low offer seriously, or any offer come to that.

TheJP

I think the OP needs to consider if they do go 5%+ under and if anything crops up in the survey the seller may not negotiate further. Depending on what may come up may make it an easy decision for both.

TheJP

bobster2 said:

TheJP said:

bobster2 said:

TheJP said:

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.

It is very normal to make an offer as a starting point - and then up that offer at least once during negotiations. Does not make anyone a problematic buyer. As a seller - I would view a buyer who refused to increase their offer at all as more problematic.

Houses sell (complete) on average for 3-5% below asking price - and it's very common to arrive at that point through though an offer / counter-offer process.

I think you missed my point, making a first offer at 10% below asking with no other reasons that you think there are issues from photos would make the OP come across as unrealistic. Even 5% is quite a stretch to go in at.

As I said - houses sell (complete) on average for 3-5% below asking price. So if there's going to be an offer - counter-offer process to get there then the initial offer will need to be lower than this. 7-8% might be typical. I agree 10% might be seen as too low and suggest to the seller that there might not be any point in negotiating.

My most recent experiences...

As a buyer - initially offered 6% below asking - completed 3% below. Got there in 2 steps.

As a seller - initial offer was 8% below asking - completed 4% below asking (I'd priced it expecting to end up close to this).

Did you and/or your buyer have any rationale as to the offer i.e. comparable houses in the area recently sold etc?

When i last sold, we had a young FTB couple view the property and make an offer £25k below asking, our house was comparable to other houses for sale in the area and recent sales. Their rationale was that the kitchen and bathroom needed to be ripped out and replaced as they aren't modern. Everything worked fine and was in good condition. They even as a term in their offer state that we would have to rip out and remove all kitchen units by completion. At this stage we told our EA no offers below £X. 

ReadySteadyPop

How many other offers have they had?