Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • AnnaToby10
    • By AnnaToby10 6th Aug 18, 9:51 AM
    • 2Posts
    • 0Thanks
    AnnaToby10
    Haggling over offer on first flat
    • #1
    • 6th Aug 18, 9:51 AM
    Haggling over offer on first flat 6th Aug 18 at 9:51 AM
    My partner and I are first-time buyers. We've been looking at two-bed flats around London for the past month now, and put in an offer on a flat last week.

    The flat has been on the market a few months. Recently, the vendor reduced the price significantly. We offered 10k below this and have been told the vendor won't budge on the price, despite our favourable position (chain-free, reasonable deposit).

    We don't really want to be pressured into paying asking price, but don't want to lose out either! Any advice?
    Last edited by AnnaToby10; 06-08-2018 at 2:16 PM. Reason: Don't want identifiable info publicly available now.
Page 1
    • dimbo61
    • By dimbo61 6th Aug 18, 9:57 AM
    • 10,099 Posts
    • 5,466 Thanks
    dimbo61
    • #2
    • 6th Aug 18, 9:57 AM
    • #2
    • 6th Aug 18, 9:57 AM
    Yes sir tight and keep looking.
    Lots and lots of flats in London and use Rightmove to check recent sales and what the vendor paid for the property and when they bought it !
    House prices in London seem to be flat or going down but each area is different.
    Your current situation may dictate how desperate you are to buy ??
    • sal_III
    • By sal_III 6th Aug 18, 10:20 AM
    • 670 Posts
    • 681 Thanks
    sal_III
    • #3
    • 6th Aug 18, 10:20 AM
    • #3
    • 6th Aug 18, 10:20 AM
    You don't know the vendor circumstances. They might need to sell at 499k to be able to afford their next home, in which case they are unlikely to budge. Or they might not be in a rush to sell and "chancing it" trying to extract as much value as possible. Or it could be a million other scenarios.

    Bottom line is how much do you like the property and would you buy it for asking price if it comes to that. It's not like paying asking price (especially after reduction) is like catching the plague...
    • hazyjo
    • By hazyjo 6th Aug 18, 10:34 AM
    • 11,143 Posts
    • 14,774 Thanks
    hazyjo
    • #4
    • 6th Aug 18, 10:34 AM
    • #4
    • 6th Aug 18, 10:34 AM
    What are similar flats selling for?


    Is it that your budget is 490k, or are you set on getting money off whatever a flat is priced at? Would you be happier if they re-listed at say 515k then took your offer of say 500k?


    Yes, a property is only worth what someone will pay. But if they won't budge and it's not overpriced, someone else will pay it so don't cut your nose off to spite your face. If it's overpriced, or ambitious, leave your offer on the table.


    Are there any compromises? Short lease? Ex-LA? Works planned? Main road or something nearby that's putting others off?
    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
    • need an answer
    • By need an answer 6th Aug 18, 11:06 AM
    • 1,017 Posts
    • 1,235 Thanks
    need an answer
    • #5
    • 6th Aug 18, 11:06 AM
    • #5
    • 6th Aug 18, 11:06 AM
    But they are moving further out of London and bought the property some years ago, so they will be making a tidy profit.
    Originally posted by AnnaToby10
    umm !!!8230; not sure that should be the basis of your offer or reason not to pay what the property is worth to you.

    but each to their own

    If you genuinely prefer this property to another you have viewed by all means stick with the offer you have made or are considering.However if it is now competitively priced then expect other buyers tp potentially offer the asking price.


    A property will only sell when the vendor and the purchaser have the same expectation about the price so trying to second guess how much profit you can slash from their figure is not always the easiest tactic to use in negotiating

    Does the vendor know you have viewed the other flat in the complex?
    Have you enquired about service charges etc on both flats,the larger one may have a higher management cost per month for example.

    Is there any reason why the flat you like should be priced lower than it is,if not then expect it to attract an offer from someone else also.

    And lastly would you feel disappointed if by not going to the asking price and being pipped by someone else or can you happily walk away.
    Last edited by need an answer; 06-08-2018 at 11:15 AM.
    in S 42 T 64 F 66
    out S 60 T 69 F 78
    2017 -32
    • mije1983
    • By mije1983 6th Aug 18, 12:12 PM
    • 3,554 Posts
    • 20,285 Thanks
    mije1983
    • #6
    • 6th Aug 18, 12:12 PM
    • #6
    • 6th Aug 18, 12:12 PM
    Absolutely agree. But they are moving further out of London and bought the property some years ago, so they will be making a tidy profit.
    Originally posted by AnnaToby10

    That doesn't discount the points made. Maybe their new property is 1m? Or 500k and they don't want to get a mortgage? They still may 'need' 499k.

    Whether they make a 'tidy profit' or not is immaterial. When I bought my current property, the vendors had made a 50% 'profit'. But that's what the market dictated it was worth and if I had tried to use that as a reason for negotiation I'm sure I would have been laughed at!

    The big queston is how much do you actually want the flat? Would you be happy to miss out for the sake of 2% of the asking price which is about 40 a month?

    • G_M
    • By G_M 6th Aug 18, 12:17 PM
    • 46,179 Posts
    • 55,899 Thanks
    G_M
    • #7
    • 6th Aug 18, 12:17 PM
    • #7
    • 6th Aug 18, 12:17 PM
    What they paid, what profit they made, what improvements they've done, where they are going: all these are irrelevant.


    All that matters are


    * the price they are selling for compared to other similar local properties
    * whether they seem willing to reduce that price or not
    * how much you can afford
    * how much you want this particular property
    • HampshireH
    • By HampshireH 6th Aug 18, 12:34 PM
    • 1,149 Posts
    • 1,380 Thanks
    HampshireH
    • #8
    • 6th Aug 18, 12:34 PM
    • #8
    • 6th Aug 18, 12:34 PM
    How significantly did they reduce the price? If they feel they are already losing out they are less likely to be flexible
    • xsor
    • By xsor 6th Aug 18, 3:19 PM
    • 87 Posts
    • 28 Thanks
    xsor
    • #9
    • 6th Aug 18, 3:19 PM
    • #9
    • 6th Aug 18, 3:19 PM
    If they recently just reduced a huge amount, they probably wouldn't do it again.

    If you want to be cheeky, 1-3k max, anything higher I would also tell you to go away!

    They will wait a couple of more months to see how the new prices go
    • AnnaToby10
    • By AnnaToby10 6th Aug 18, 4:44 PM
    • 2 Posts
    • 0 Thanks
    AnnaToby10
    Thanks all - really helpful.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

937Posts Today

5,820Users online

Martin's Twitter