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  • FIRST POST
    • BSW89
    • By BSW89 11th Aug 18, 7:20 PM
    • 31Posts
    • 11Thanks
    BSW89
    Is it reasonable to offer £10k less than guide price?
    • #1
    • 11th Aug 18, 7:20 PM
    Is it reasonable to offer £10k less than guide price? 11th Aug 18 at 7:20 PM
    Hi all,

    I am thinking of making an offer on a property which will need some work. Some smaller but more necessary things e.g. dodgy door handles, old/tatty carpet in one room; some bigger but less urgent things e.g. 15 year old kitchen and bathroom which are liveable but slightly dated and worn; some potential issues e.g. a 15 year old boiler which works ok now but for how much longer?

    I've looked at quite a few properties in the area and think the guide price is about right considering just the size/location etc but perhaps a little steep once the above is taken into account. The property was on the market earlier this year for £10k more than the current guide price but had no offers, and since then house prices have fallen for the post code.

    I'm thinking of offering about £10k under guide price and mentioning the things detailed above, just wanted a sense check on whether that seems reasonable?
Page 1
    • Cakeguts
    • By Cakeguts 11th Aug 18, 7:21 PM
    • 5,307 Posts
    • 8,078 Thanks
    Cakeguts
    • #2
    • 11th Aug 18, 7:21 PM
    • #2
    • 11th Aug 18, 7:21 PM
    You offer what it is worth to you and the vendor either accepts it or they don't.
    • AnotherJoe
    • By AnotherJoe 11th Aug 18, 7:27 PM
    • 11,811 Posts
    • 13,755 Thanks
    AnotherJoe
    • #3
    • 11th Aug 18, 7:27 PM
    • #3
    • 11th Aug 18, 7:27 PM
    It's all relative. Are you offering on a £1M or a £100k?
    • BSW89
    • By BSW89 11th Aug 18, 8:02 PM
    • 31 Posts
    • 11 Thanks
    BSW89
    • #4
    • 11th Aug 18, 8:02 PM
    • #4
    • 11th Aug 18, 8:02 PM
    You offer what it is worth to you and the vendor either accepts it or they don't.
    Originally posted by Cakeguts
    This seems a common response but isn't that practical - I've made offers on two properties recently based on what I felt those properties were worth to me, but was outbid, so am trying to get a more grounded perspective on what to offer.
    • BSW89
    • By BSW89 11th Aug 18, 8:03 PM
    • 31 Posts
    • 11 Thanks
    BSW89
    • #5
    • 11th Aug 18, 8:03 PM
    • #5
    • 11th Aug 18, 8:03 PM
    It's all relative. Are you offering on a £1M or a £100k?
    Originally posted by AnotherJoe
    Guide price is £260k.
    • need an answer
    • By need an answer 11th Aug 18, 8:16 PM
    • 1,005 Posts
    • 1,225 Thanks
    need an answer
    • #6
    • 11th Aug 18, 8:16 PM
    • #6
    • 11th Aug 18, 8:16 PM
    This seems a common response but isn't that practical - I've made offers on two properties recently based on what I felt those properties were worth to me, but was outbid, so am trying to get a more grounded perspective on what to offer.
    Originally posted by BSW89
    That may be telling you then that perhaps you are underestimating the value of the properties you are offering on.

    If someone is going in at a higher bid then I doubt its them that are pitching the price wrongly.

    Every situation is different and it really depends where the vendors flex point is...I under offered by 15% on one property I bought never expected them to take the offer seriously and surprised both myself and the agent when the vendor accepted.It was just a case of the timing was right for all of us.

    The most recent property I bought I had to go straight in at asking price and even then the vendor tried to squeeze more.


    Its difficult when you are a FTB to see the whole picture.

    Imagine you in 10 years time when you come to sell that house,how would you feel about the then FTB's lowering their offer because they wanted to update the very functional kitchen that was bang on trend when you paid a fortune for it!


    Carpets handles and decoration are perhaps enhancements you want to make and in someways the vendor shouldn't be subsidising your choices.

    The real number crunch is when the property is valued for your mortgage purpose that's around the figure you should be thinking of offering not a lower figure that allows you to upgrade to your requirement.

    All you can do is try your offer and be prepared to up it if its truly the property you want to secure or walk away and keep looking
    Last edited by need an answer; 11-08-2018 at 8:21 PM.
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    • BSW89
    • By BSW89 11th Aug 18, 8:46 PM
    • 31 Posts
    • 11 Thanks
    BSW89
    • #7
    • 11th Aug 18, 8:46 PM
    • #7
    • 11th Aug 18, 8:46 PM
    That may be telling you then that perhaps you are underestimating the value of the properties you are offering on.

    If someone is going in at a higher bid then I doubt its them that are pitching the price wrongly.

    Every situation is different and it really depends where the vendors flex point is...I under offered by 15% on one property I bought never expected them to take the offer seriously and surprised both myself and the agent when the vendor accepted.It was just a case of the timing was right for all of us.

    The most recent property I bought I had to go straight in at asking price and even then the vendor tried to squeeze more.


    Its difficult when you are a FTB to see the whole picture.

    Imagine you in 10 years time when you come to sell that house,how would you feel about the then FTB's lowering their offer because they wanted to update the very functional kitchen that was bang on trend when you paid a fortune for it!


    Carpets handles and decoration are perhaps enhancements you want to make and in someways the vendor shouldn't be subsidising your choices.

    The real number crunch is when the property is valued for your mortgage purpose that's around the figure you should be thinking of offering not a lower figure that allows you to upgrade to your requirement.

    All you can do is try your offer and be prepared to up it if its truly the property you want to secure or walk away and keep looking
    Originally posted by need an answer
    Many thanks - this is helpful.

    It is tricky, one of those properties hadn't had any offers in 5 months when I made my offer (just below guide price), for the other property my final offer was £10k above guide price and it still got rejected, so it's beginning to feel like a stab in the dark.

    I do understand it comes down to the vendor, their circumstances and general outlook, and - to some extent - luck, i.e. what other offers are made at the same time, so am trying not to get too disheartened, but also trying to be proactive in ensuring I'm making reasonable offers without going overboard and paying too much.
    • lookstraightahead
    • By lookstraightahead 11th Aug 18, 9:24 PM
    • 619 Posts
    • 594 Thanks
    lookstraightahead
    • #8
    • 11th Aug 18, 9:24 PM
    • #8
    • 11th Aug 18, 9:24 PM
    I would never offer more than 90% of the asking price.
    • Cakeguts
    • By Cakeguts 11th Aug 18, 9:31 PM
    • 5,307 Posts
    • 8,078 Thanks
    Cakeguts
    • #9
    • 11th Aug 18, 9:31 PM
    • #9
    • 11th Aug 18, 9:31 PM
    You don't get money off for your taste in kitchens and bathrooms. They aren't your taste. You don't get money off for that. Door handles are minor repairs and carpets you would probably change anyway so an old one isn't going to change how much you offer. So all you have to do is decide whether the asking price is reasonable compared to properties that have sold recently in a close area.



    A 10k reduction is too much if it is based on repairing door handles and a boiler that might break down in a couple of years time.
    • goodwithsaving
    • By goodwithsaving 11th Aug 18, 10:00 PM
    • 889 Posts
    • 1,418 Thanks
    goodwithsaving
    There isn't a one size fits all. I've always sold at asking price and have bought 1 at asking price and 2 at varying amounts under.


    If kitchens, bathrooms etc are old, the property may have been priced accordingly. If kitchens, bathrooms etc are not to your taste, that's subjective and isn't something that is the vendors problem and I wouldn't agree to a reduction for.
    If the boiler needs replacing, that's not worthy of a £10k reduction. It may be a servicable boiler. Just because it's 15 years old it doesn't mean it's worse than a newer one. Some of the boilers developers install these days are cheap rubbish. I always expect to replace carpets regardless - carpet in one room isn't worthy of a further £7k reduction (if a boiler were to be £3k).


    That's just house. The vendors position can also determine any reduction. They want to sell then maybe they'll accept a reduction. If they're putting it on the market and aren't in a rush to sell, they may not accept a reduction.
    Last edited by goodwithsaving; 11-08-2018 at 10:03 PM.
    Every time you borrow money, youíre robbing your future self. ĖNathan W. Morris
    • lookstraightahead
    • By lookstraightahead 12th Aug 18, 4:26 AM
    • 619 Posts
    • 594 Thanks
    lookstraightahead
    Anyone putting their house on the market should expect to negotiate. I think 10% less than asking price is a perfectly reasonable offer. Surely there isn't any savvy seller who puts their house on the market without room for maneuvre?
    • Davesnave
    • By Davesnave 12th Aug 18, 7:11 AM
    • 26,847 Posts
    • 96,556 Thanks
    Davesnave
    I once offered 27% below the guide price and that amount was eventually accepted.....


    .....OK it wasn't my offer and it was 3 years later!
    "We won't get fooled again...."
    • Trixsie1989
    • By Trixsie1989 12th Aug 18, 7:31 AM
    • 485 Posts
    • 501 Thanks
    Trixsie1989
    The house that we are buying was up for £130k and the vendor reduced to £120k, we went in at £110k and have settled for that
    It will depend on what your budget is, we knew we couldn't go over £120k so started lower to enable us room to work up to full asking price if need be.
    Debt free finally
    First house purchase ... 2018
    • quantumlobster
    • By quantumlobster 12th Aug 18, 9:14 AM
    • 274 Posts
    • 601 Thanks
    quantumlobster
    Anyone putting their house on the market should expect to negotiate. I think 10% less than asking price is a perfectly reasonable offer. Surely there isn't any savvy seller who puts their house on the market without room for maneuvre?
    Originally posted by lookstraightahead
    There are plenty of houses on the market where the seller (savvy or otherwise) has little or no room for manoeuvre, for all sorts of perfectly valid reasons.
    • need an answer
    • By need an answer 12th Aug 18, 9:23 AM
    • 1,005 Posts
    • 1,225 Thanks
    need an answer
    Anyone putting their house on the market should expect to negotiate. I think 10% less than asking price is a perfectly reasonable offer. Surely there isn't any savvy seller who puts their house on the market without room for maneuvre?
    Originally posted by lookstraightahead
    I agree with this however there does seem to be a trend round my way of listing at "offers over x "

    When I recently put an offer in at a shade below the offers over I was left in no doubt by the communication back that over meant more.

    Ended up offering the price of x and even then the vendor tried to push up.

    I don't like offers over simply because if a vendor wanted a higher price they should just list it at the higher price,having offers over just tries to manipulate everyone into a bidding war.

    Sometimes it just isn't possible for either the vendor or the purchaser to agree and at that point its just best to walk away.

    I guess it boils down to both the purchaser and the seller being able to get the best price,when your the seller you want that high and when your the purchaser you want that lower.
    10% can be quite a lot to drop in some cases.
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    • lookstraightahead
    • By lookstraightahead 12th Aug 18, 10:13 AM
    • 619 Posts
    • 594 Thanks
    lookstraightahead
    There are plenty of houses on the market where the seller (savvy or otherwise) has little or no room for manoeuvre, for all sorts of perfectly valid reasons.
    Originally posted by quantumlobster
    Maybe then it's just me but my mindset is that no one should expect the starting price - I always assume negotiation is built in to an asking price - isn't that they way we buy and sell property? Maybe because it has been a sellers market for so long people have come to expect what their property has been valued at by an estate agent. But as a buyer I would rarely accept this estimate on its own.
    • NeilCr
    • By NeilCr 12th Aug 18, 10:33 AM
    • 2,450 Posts
    • 3,451 Thanks
    NeilCr
    Maybe then it's just me but my mindset is that no one should expect the starting price - I always assume negotiation is built in to an asking price - isn't that they way we buy and sell property? Maybe because it has been a sellers market for so long people have come to expect what their property has been valued at by an estate agent. But as a buyer I would rarely accept this estimate on its own.
    Originally posted by lookstraightahead
    That's surely an it depends isn't it?

    I got asking price for the flat I sold in London. I expected offers but I also expected the full asking price because it was reasonably priced (right on the stamp duty limit). Good estate agent with the right advice.
    • need an answer
    • By need an answer 12th Aug 18, 10:42 AM
    • 1,005 Posts
    • 1,225 Thanks
    need an answer
    Maybe then it's just me but my mindset is that no one should expect the starting price - I always assume negotiation is built in to an asking price - isn't that they way we buy and sell property? Maybe because it has been a sellers market for so long people have come to expect what their property has been valued at by an estate agent. But as a buyer I would rarely accept this estimate on its own.
    Originally posted by lookstraightahead
    The sellers market situation does have a lot to answer for!
    as do the Ea's who operate unrealistic starting prices.

    The whole culture of buying and selling seems to have changed even in the last 5 years.

    You quite regularly get agents who offer vendors a choice of price when listing their property from the inflated to the optimistic to the realistic to the achievable.

    Of course sellers opt for the valuations that are perhaps optimistic because the agent says its achievable. What then tends to happen is a series of reductions in that asking price as time goes by until the property reaches a more realistic figure.

    By this point the seller is of the potential mindset that they have already lost many thousands on the sale and is therefore reluctant to go much lower.

    In reality the seller has not lost anything except a paper valuation that was probably too high in the first place


    so when a buyer comes along and offers below what was their lower original estimate they have 2 options either accept that they were overpriced in the first place or like some do insist the agent knew what the market was worth and hold out for their price no matter what!

    I've bought 3 properties in the last 2 years and each have been a real cat and mouse game !!!8230;.it was so much easier when we bought our first home way back in the day,people seemed to have a better understanding what their price points were.

    My neighbours have just reduced their asking price by £35k after they failed to get offers,they are firmly of the belief that they will get the new asking price,the reality is that theres probably another 10k to come off before the offers will start! but try telling them that!...people start to offer when the price is realistic its just a case of finding that realistic point.

    maybe the introduction of sold prices online was the start of people trying to turn the act of buying and selling into a mathematical equation with a set formula....
    Last edited by need an answer; 12-08-2018 at 10:48 AM.
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    • a_silver_lining
    • By a_silver_lining 12th Aug 18, 11:11 AM
    • 342 Posts
    • 948 Thanks
    a_silver_lining
    Yes. Flat I bought was listed as 174 and I didn't view it. Dropped to 164 and I viewed and offered 150, negotiates up to 156.500, which was inline with my expected value of the property pretty much as I had worked out it was worth around 155. Upstairs sold for 166 a year later which was slightly more ten I had anticipated so I think I actually got a better deal then I thought, not that that means much anyway.
    19/12/14: Spent 10 years of savings!!
    ..... to buy my first home.

    2018: 3.3k personal savings --- Family Loan (6k paid direct) 6k/ 10K paid 60%
    Extra cash made 2018: 1021.41
    • Tiffyb
    • By Tiffyb 12th Aug 18, 1:06 PM
    • 23 Posts
    • 3 Thanks
    Tiffyb
    we are in the processes of buying a house that we have bought for £12k under the guide price.

    It needs a new kitchen, and kitchen floor, carpets, decorating.

    ITs all liveable (apart from the lack of carpets upstairs that are needed as we move in)

    For us, the price we have paid was what we felt it was worth to us! we are FTB and pur budget was small to begin with, and we are helped that the seller is selling to retire so i think that made him more amenable.

    However, i think you should take your chances, offer what you wish and work from there, the buyer will only say no and more than likely counter, and thats no a bad thing!
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