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  • FIRST POST
    • tearfulheart
    • By tearfulheart 22nd Jul 18, 4:37 AM
    • 13Posts
    • 1Thanks
    tearfulheart
    Making a very low offer
    • #1
    • 22nd Jul 18, 4:37 AM
    Making a very low offer 22nd Jul 18 at 4:37 AM
    There's a lovely apartment that has been advertised for 240,000 in a great location in the city centre, to a very well connected train station and the estate agent has stated "offers over" in the advert. Would I be unreasonable to make an offer of 200,000?

    Does the estate agent have to respond to be or can they ignore me?

    I'm reluctant to put in a higher offer initially because based on Zoopla, the current owners paid: 155,000 2 years ago and the Zoopla estimate for that particular property is 194,000. However, apartments in that building for the same number of bedrooms is advertised as 250,000+.

    The apartment itself I basically find perfect. Great view, location, security, seemingly well looked after, etc just too pricey.
Page 2
    • tearfulheart
    • By tearfulheart 22nd Jul 18, 8:42 PM
    • 13 Posts
    • 1 Thanks
    tearfulheart
    I understand there can sometimes be back and forth with the vendor and the buyer on the price. If my target was 230k, what would people suggest as a more reasonable initial offer? I'm guessing if I did put in 230k I'm at potentially at disadvantage and would end up meeting halfway instead at 235k.
    • need an answer
    • By need an answer 22nd Jul 18, 8:42 PM
    • 1,020 Posts
    • 1,240 Thanks
    need an answer
    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.
    in S 42 T 64 F 66
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    2017 -32
    • tearfulheart
    • By tearfulheart 22nd Jul 18, 8:53 PM
    • 13 Posts
    • 1 Thanks
    tearfulheart
    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.
    Originally posted by need an answer
    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
    • By need an answer 22nd Jul 18, 9:22 PM
    • 1,020 Posts
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    need an answer
    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.
    in S 42 T 64 F 66
    out S 60 T 70 F 78
    2017 -32
    • A.V.A
    • By A.V.A 22nd Jul 18, 9:29 PM
    • 1 Posts
    • 8 Thanks
    A.V.A
    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
    • By tearfulheart 22nd Jul 18, 10:02 PM
    • 13 Posts
    • 1 Thanks
    tearfulheart
    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.
    Originally posted by A.V.A
    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
    • By sparkey1 22nd Jul 18, 10:20 PM
    • 439 Posts
    • 193 Thanks
    sparkey1
    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.
    Originally posted by tearfulheart
    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
    • By kinger101 22nd Jul 18, 10:58 PM
    • 4,491 Posts
    • 6,230 Thanks
    kinger101
    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.
    Originally posted by tearfulheart
    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.
    • hazyjo
    • By hazyjo 22nd Jul 18, 11:49 PM
    • 11,145 Posts
    • 14,781 Thanks
    hazyjo
    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.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes; Thai cooking stuff; Jo Brand talk; Slime Factory; Flawless tickets; Comedy night tickets; Triominos
    • ReadingTim
    • By ReadingTim 23rd Jul 18, 12:08 PM
    • 3,158 Posts
    • 4,702 Thanks
    ReadingTim
    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.
    Originally posted by hazyjo
    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
    • By lookstraightahead 23rd Jul 18, 1:56 PM
    • 633 Posts
    • 610 Thanks
    lookstraightahead
    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.
    • happyandcontented
    • By happyandcontented 23rd Jul 18, 2:11 PM
    • 1,712 Posts
    • 3,562 Thanks
    happyandcontented
    As a seller, I would be wary of the very low offer too. Either you are playing games, have no appreciation of real prices or just can't afford it. In either case, I would hesitate to take more offers from you especially if there were other buyers.

    It always amazes me when on the TV housebuying shows they say they have x to spend then they really seem to fall in love with a property which is under that budget but they then offer very much less and then walk away when it is refused. Waste of time all round.
    • todayisagreatday
    • By todayisagreatday 23rd Jul 18, 4:06 PM
    • 184 Posts
    • 130 Thanks
    todayisagreatday
    I don't always find sold prices helpful. When we bought ours it was advertised well over Zoopla estimates purely because the last property in the 'area' sold over 4 years ago. The general postcode covers quite a rural area with a busy main road too a the postcode area can mean it's completely inaccurate value wise depending on whether you are on the main a main A road or down a lane in a rural location away from the A road. We paid over 50k lower than the asking price as it was a probate sale and we were able to heavily negoaite yet Zoopla indicates our value is significantly lower than what we paid.

    Zoopla doesn't know that our property has canal frontage and half an acre it just sees it as expensive compared to other similar properties in the postcode area (the postcode on any map doesn't take you to our property anyway).

    House sold prices are relative, I don't care what the previous owners paid, it's the current value compared to others and if it is value for money.....
    • lookstraightahead
    • By lookstraightahead 23rd Jul 18, 4:40 PM
    • 633 Posts
    • 610 Thanks
    lookstraightahead
    As a seller, I would be wary of the very low offer too. Either you are playing games, have no appreciation of real prices or just can't afford it. In either case, I would hesitate to take more offers from you especially if there were other buyers.

    It always amazes me when on the TV housebuying shows they say they have x to spend then they really seem to fall in love with a property which is under that budget but they then offer very much less and then walk away when it is refused. Waste of time all round.
    Originally posted by happyandcontented
    The problem is, many people don't trust the price it appears to be valued at, I certainly don't. Prices are plucked out of thin air, or the vendor is being greedy, or the estate agent wants to win business. I'm not sure what a 'real' price is anymore.
    • AdrianC
    • By AdrianC 23rd Jul 18, 5:30 PM
    • 19,792 Posts
    • 18,377 Thanks
    AdrianC
    The problem is, many people don't trust the price it appears to be valued at, I certainly don't. Prices are plucked out of thin air, or the vendor is being greedy, or the estate agent wants to win business. I'm not sure what a 'real' price is anymore.
    Originally posted by lookstraightahead
    Very simple - it's the price at which a buyer is happy to buy, and at which the seller is happy to sell.

    There is nothing more to it than that.

    Of course, it doesn't stand alone - it's informed by the other properties on the market, by simple comparison. Would you be willing to pay the same as house A as for house B? Would you be willing to pay more for house A than house C? Would you be willing to pay more for house D than house A?
    • Smodlet
    • By Smodlet 23rd Jul 18, 5:35 PM
    • 4,197 Posts
    • 7,517 Thanks
    Smodlet
    [QUOTE=lookstraightahead;74564418]The problem is, many people don't trust the price it appears to be valued at, I certainly don't. Prices are plucked out of thin air, or the vendor is being greedy, or the estate agent wants to win business. I'm not sure what a 'real' price is anymore.[/QUOTE]

    What it sold for since properties are worth what someone is willing to pay for them. I think the OP needs to try to imagine how they would feel were they attempting to sell rather than buy a property. No-one likes a time-waster and without first credibility, then trust, no sale is likely to complete.
    Last edited by Smodlet; 23-07-2018 at 5:40 PM.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • MysteryMe
    • By MysteryMe 23rd Jul 18, 6:47 PM
    • 2,036 Posts
    • 2,483 Thanks
    MysteryMe
    Exactly that. I really think people are now over thinking things to the Nth degree, playing amateur detective and just going around in circles and losing sight of the fact they have found a property they like, can afford and would like to make a home because they think they have to go through some complicated strategy beforehand.

    Millions of people have bought and sold properties, most on this thread have and the vast majority have turned out fine. We've all survived the process. Just use common sense.
    • Smodlet
    • By Smodlet 23rd Jul 18, 7:57 PM
    • 4,197 Posts
    • 7,517 Thanks
    Smodlet
    Aahh, "common sense"... Pity it is such a rare commodity and, imho, becoming more and more rare the more apps are inflicted on society. I think there may be a perception that, if you do not "shaft" your vendor or buyer, you have somehow failed. This is not true.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
    • Crashy Time
    • By Crashy Time 10th Aug 18, 11:45 AM
    • 7,018 Posts
    • 2,562 Thanks
    Crashy Time
    What was the final offer?
    • Crashy Time
    • By Crashy Time 28th Aug 18, 10:08 PM
    • 7,018 Posts
    • 2,562 Thanks
    Crashy Time
    Do people really factor in how much the seller paid for the property before making an offer?

    I bought my property in 2011 for 113k. Estate agent has valued it at 170k. So potential buyers might think that's a 57k mark up. But it doesn't take into account that it was a probate property that hadn't had any work done on it for what seemed like 40 years! I spent well over 30k to make it habitable. So that's really a 27k mark up.

    If it's valued right for what it is at that moment in time it shouldn't matter what the seller paid for it, should it?
    Originally posted by missis_amber

    All that matters is what a buyer will pay for it.
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