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Making a very low offer

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  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
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    TBH if a potential purchaser went up in small increments over a series of offers I wouldn't be interested.



    If you are serious about buying then go in at a realistic offer perhaps a shade under your max but any more than 3 offers and for me you wouldn't seem a serious motivated buyer....sorry.
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  • tearfulheart
    tearfulheart Posts: 13 Forumite
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    need_an_answer wrote: »
    TBH if a potential purchaser went up in small increments over a series of offers I wouldn't be interested.



    If you are serious about buying then go in at a realistic offer perhaps a shade under your max but any more than 3 offers and for me you wouldn't seem a serious motivated buyer....sorry.

    Would a starting offer of £220k with a £5k increment per offer be reasonable? What would be a reasonable increment amount for a property around this price?
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
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    Personally I've bought property over the years and have never gone with more than 3 offers.

    Most have been secured in 2 offers,but for me as I personally think if the third offer doesn't secure it then its time to walk away.


    Up to you what increments you go with,at the end of the day its all about whether you and the vendor have the same expectation.
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  • A.V.A
    A.V.A Posts: 1 Newbie
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    Someone made me a low offer of 40k less than asking price I was insulted as we priced our property at a reasonable price and around the price of similar properties that had sold.

    The same person made an offer of 20k less than asking price a couple of weeks later and again this offer was rejected.

    I feel the person was playing games and even if they did offer the lowest we were willing to accept I wouldn't want to accept their offer as I didn't trust them as a buyer.
  • tearfulheart
    tearfulheart Posts: 13 Forumite
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    A.V.A wrote: »
    Someone made me a low offer of 40k less than asking price I was insulted as we priced our property at a reasonable price and around the price of similar properties that had sold.

    The same person made an offer of 20k less than asking price a couple of weeks later and again this offer was rejected.

    I feel the person was playing games and even if they did offer the lowest we were willing to accept I wouldn't want to accept their offer as I didn't trust them as a buyer.

    Useful to know a perspective from a vendor! This is all very new to me, so until now I've only been thinking about how much money I can save.
  • sparkey1
    sparkey1 Posts: 444 Forumite
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    tearfulheart wrote: »
    Useful to know a perspective from a vendor! This is all very new to me, so until now I've only been thinking about how much money I can save.

    Might be worth thinking about how much you could lose. The average house sale takes about 12 weeks to go through. Neither party is bound to complete until exchange of contracts. So picture this. They want 240K, you offer below that. You pay the bank for the valuation and your solicitor so thats going to be at least £500 maybe even as much as £1000 paid out. 3 days before you are due to exchange, their friend offers them 230K. Bang, you dont get to buy, and lose your legal fees, your valuation, maybe a mortgage application fee etc.

    If you go in low, back it up. Ie With cash and exchange quickly!
  • kinger101
    kinger101 Posts: 6,284 Forumite
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    tearfulheart wrote: »
    The average selling price for apartments there in the last 12 months is £220,382 (though this figure is likely skewed by 1 bed flats that sell for around ~£150k)

    Looking at the last 12 month selling prices for the 2 beds, the prices range from £230k-£265k.

    Because I'm expecting the vendor to reject this initial offer, I wanted to start lower to give more room to make incrementally higher offers. I'm expecting to pay around £230k, but wondered whether it was worth risking starting off with an extremely lower offer just to try my chances.

    Based on what you've said, if it were my property, I'd instruct the agent to reject all future bids from you. You simply don't look credible, and even if you could prove funds, I have little faith you'd complete.

    The EA will also think you're a bit of a wally, and given two identical bids on another property, they'll negotiate with the other party first.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    Going up from £200k expecting to increase to £230k would look ridiculous IMO. I'd be starting somewhere around the £224k mark on an 'offers over' property which appears to be valued around the right figure. And agree, go up in no more than three increments or they will simply keep coming back knowing you keep upping your offer from what appears to be a bottomless pit. You have to play the game well.
    2023 wins: *must start comping again!*
  • ReadingTim
    ReadingTim Posts: 3,970 Forumite
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    hazyjo wrote: »
    Going up from £200k expecting to increase to £230k would look ridiculous IMO. I'd be starting somewhere around the £224k mark on an 'offers over' property which appears to be valued around the right figure. And agree, go up in no more than three increments or they will simply keep coming back knowing you keep upping your offer from what appears to be a bottomless pit. You have to play the game well.

    I think most vendors would have lost patience with that sort of buyer long before they get to meaningful amounts - they'd simply write you off as a deluded timewasting fantasist who can't really afford the place.

    If you can't agree a price in no more than 4 offers/attempts/rounds of negotiations, it ain't gonna happen, so move on.
  • lookstraightahead
    lookstraightahead Posts: 5,540 Forumite
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    It really depends on the sellers circumstances. Some have to get a certain price, some want out quickly. I remember a divorce case where even at the asking price the vendor wouldn't sell, and another divorce case where both parties just wanted the property off their hands.

    I do think it's up to the buyer really, they're the ones with nothing to lose if they have the right frame of mind.
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