Selling price vs. Asking price

paulb567

Does anyone have any idea roughly how much of the asking price houses sell for?

We're FTBs looking at spending £160000 (£25k deposit and £135k mortgage).

Is looking at houses adverised in the 180-190k region unrealistic? This would mean we would offer between 11 & 16% less that the asking price? Or should we be offering less since we're FTBs with no chain, etc?

Opinions welcome,

thanks in advance, Paul

Squidgy

There is no hard and fast rule, however do you not think you would be stretching yourself ever so slightly looking at houses that expensive? I very much doubt they would take an offer within your budget.

Why not look at houses for around £160k then if they take less it's just a bonus?

Sorry just MHO

Squidgy x

zag2me

93% of the asking price is about the average, i seem to remember reading it in some housing market reports.

GreenB_2

Varies deping on the region / local area and how many houses are on the market, how much the people need to sell , how qucikly you can move etc.

So there are no hard and fast rules. You maybe lucky and find you can get a house for 90% (more often than not those requiring work) or you may have to pay 98 to 100% in areas with large demand (and there are some areas still in this situation).

mimi_money_saver

The risk is you find a place in the 180-190K range that you really like and the buyer won't accept offers as low as you are wanting to go. You may end up disappointed or stretching yourself beyond your means.

Probably best to look at a bunch of properties in a larger range starting at your £160K budget and rising. As mentioned earlier it will depend on the vendors situation. We found a house we liked and made an a good offer as we really wanted the property (94% of asking) The vendor flatly turned us down as they had just sold their flat in London and were not desperate to sell their house as they could secure their next property from the equity in their flat.

ReportInvestor

If you have been looking for a while and have kept estate agents blurb you can check this site to see the actual selling prices of individual houses to the end of May 2005 compared to what people asked.

If you haven't got any records then it still gives you valuable information and bargaining power because it give you hard facts about the specific local market.

And if you aren't in a rush, then it's worth filing away all the estate agents details of the area you want in future so that you can see what they sold for in a few months time.

Doozergirl

How very British of the respondants so far! I say go for it. You must expect to be knocked back but aim high! if you make several offers on different properties, you may find yourself lucky on one!

There is nothing wrong with making an offer, regardless of what percentage of the asking price is deemed a respectable offer. For some vendors, anything less than asking price is an insult, others price expecting to be knocked down.

My advice to you is to be cheeky. After all, you don't have to worry about the vendor's reaction - you only have to speak to the estate agent!

ReportInvestor

zag2me wrote:

93% of the asking price is about the average, i seem to remember reading it in some housing market reports.

I also read that recently.

Four London houses of a similar build and location in the same road that I've just researched were sold as follows.
Dec03 - Offered for sale @ £450 - price paid £430
Apr04 - Offered for sale @ £525K - Price paid £485K (the next door semi to house 1)
Nov04 - Offered for sale @ £460K - Price paid £430K
Dec04 - Offered for sale @ £500K - Price paid £455K
Which also confirmed my impression that prices in this particular area peaked in the Spring/very early Summer of 2004.

But remember - all property is local.

bridiej

I think it's what others have said, it really does vary from area to area and even from vendor to vendor.

Give it a go but I do also agree that you might fall in love with somewhere you cant afford.

nelly_2

First of all dont fall in love with a pile of bricks.

Second go for it you never know you might just get lucky, no harm in trying is there?

GreenB_2

Only if you start making lots of silly offers... then the EA's will refuse to speak to you and send details etc so you end up being unable to buy a house in the area at all.
Remember many EA's are friends with each other!