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
    • BSW89
    • By BSW89 11th Aug 18, 7:20 PM
    • 28Posts
    • 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 2
    • NaughtiusMaximus
    • By NaughtiusMaximus 12th Aug 18, 1:48 PM
    • 902 Posts
    • 2,132 Thanks
    NaughtiusMaximus
    I would never offer more than 90% of the asking price.
    Originally posted by lookstraightahead
    Even if the asking price for the property is very reasonable or even slightly undervalued?
    • AnotherJoe
    • By AnotherJoe 12th Aug 18, 2:14 PM
    • 10,116 Posts
    • 11,372 Thanks
    AnotherJoe

    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.
    Originally posted by need an answer
    Here's another POV on a vendors position (using some numbers to make it clearer)

    The vendor wants at least £250k.
    They want to make that clear.
    They dont want get into games of putting it up at £270k expecting to be knocked down to £250k, because some one will come along and offer £240 and also because if they put it up at £270k some people with a top limit of £250k wont look at it.
    And they dont want to put it up at £250k because people will think they've added on 10% more (for "negotiation") and will really settle for £225k.
    No idea why you think they want to "start a bidding war" and i dont see how it does anyway, you only get a bidding war when there are two at least interested which is out of their control.

    Unfortunately people bring their own preconceptions and make up their own narrative what the bidder wants (such as, "starting a bidding war"), or that they have accepted teh EAs price "people have come to expect what their property has been valued at by an estate agent" - without knowing if the EA sugegsted £265 and they put it up at offers over 250 because they want to sell quickly) and so someone who is being very straightforward "the minimum i want is £250k" has all sorts of motives attached to their behaviour by buyers who even get annoyed with them even though its probably entirely the bidders misconception.
    Last edited by AnotherJoe; 12-08-2018 at 2:19 PM.
    • lookstraightahead
    • By lookstraightahead 12th Aug 18, 4:42 PM
    • 370 Posts
    • 349 Thanks
    lookstraightahead
    Even if the asking price for the property is very reasonable or even slightly undervalued?
    Originally posted by NaughtiusMaximus
    Every house I see for sale I think of the 'real' price as 10% less than the asking price. I don't think of it in any other way (not saying I am right to do this and it might just be habit) but I never think of the value as the asking price. I have always sold with the same in mind as well. I thought lots of people think this way?
    • NaughtiusMaximus
    • By NaughtiusMaximus 12th Aug 18, 5:04 PM
    • 902 Posts
    • 2,132 Thanks
    NaughtiusMaximus
    Every house I see for sale I think of the 'real' price as 10% less than the asking price. I don't think of it in any other way (not saying I am right to do this and it might just be habit) but I never think of the value as the asking price. I have always sold with the same in mind as well. I thought lots of people think this way?
    Originally posted by lookstraightahead
    When I was house hunting last year I saw quite a few houses which were listed at what I thought was a very fair selling price, they tended to be sold within a couple of weeks of listing, for the few where I could be bothered to check Zoopla a few months down the line, they all went for very close to the asking price, including one which went for 7k above.

    Any offer of 10% below for these would likely have been rejected out of hand, as would an offer of 10% below on our old property we sold in June last year.

    Of course a lot of houses are overpriced to start with so 10% below on these isn't unreasonable but imo it's a little short sighted to adopt that as a blanket rule.
    Last edited by NaughtiusMaximus; 12-08-2018 at 5:07 PM.
    • NeilCr
    • By NeilCr 12th Aug 18, 5:07 PM
    • 2,050 Posts
    • 2,723 Thanks
    NeilCr
    When I was house hunting last year I saw quite a few houses which were listed at what I thought was a very fair selling price, they tended to be sold within a couple of weeks of listing, for the few where I could be bothered to check Zoopla a few months down the line, they all went for very close to the asking price, including one which went for 7k above.

    Any offer of 10% below for these would likely have been rejected out of hand, as would an offer of 10% below our old property we sold in June last year.
    Originally posted by NaughtiusMaximus
    Absolutely.

    10% below offer on my flat in London would have led me to believe that the prospective buyer was not serious - or taking the p**s.
    • lookstraightahead
    • By lookstraightahead 12th Aug 18, 6:11 PM
    • 370 Posts
    • 349 Thanks
    lookstraightahead
    That's your prerogative, like it is mine. Taking the p@@@ can work both ways, I'm just highlighting the fact that possibly many potential buyers see room for negotiation. I would expect to get a 'discount' on my car insurance, get 'cash back' when booking hotels, and get a well known high street store voucher if switching energy suppliers. All of which are incentives to get me to buy products.

    I do agree though that it has been a sellers market for a while which distorts the fact that the buyer is the customer.
    Last edited by lookstraightahead; 12-08-2018 at 6:17 PM.
    • lookstraightahead
    • By lookstraightahead 12th Aug 18, 6:30 PM
    • 370 Posts
    • 349 Thanks
    lookstraightahead
    When I was house hunting last year I saw quite a few houses which were listed at what I thought was a very fair selling price, they tended to be sold within a couple of weeks of listing, for the few where I could be bothered to check Zoopla a few months down the line, they all went for very close to the asking price, including one which went for 7k above.

    Any offer of 10% below for these would likely have been rejected out of hand, as would an offer of 10% below on our old property we sold in June last year.

    Of course a lot of houses are overpriced to start with so 10% below on these isn't unreasonable but imo it's a little short sighted to adopt that as a blanket rule.
    Originally posted by NaughtiusMaximus
    See I have seen the opposite in my area. I live in the home counties and houses are sitting on the market for yonks. Eventually prices come down at least 10% often more, then the selling price on zoopla is even less. When they don't sell for £950000 they try renting them out for £4000 a month and eventually after about a year realise their mistake. In my opinion these prices are plucked out of thin air to win business. Usually a reasonable price is one that has been lowered already.
    Last edited by lookstraightahead; 12-08-2018 at 6:42 PM.
    • NeilCr
    • By NeilCr 12th Aug 18, 7:03 PM
    • 2,050 Posts
    • 2,723 Thanks
    NeilCr
    That's your prerogative, like it is mine. Taking the p@@@ can work both ways, I'm just highlighting the fact that possibly many potential buyers see room for negotiation. I would expect to get a 'discount' on my car insurance, get 'cash back' when booking hotels, and get a well known high street store voucher if switching energy suppliers. All of which are incentives to get me to buy products.

    I do agree though that it has been a sellers market for a while which distorts the fact that the buyer is the customer.
    Originally posted by lookstraightahead
    Of course.

    But I've been responding to your assertion that no vendor should "expect" to get the asking price. Fundamentally, wrong.
    • YoungBlueEyes
    • By YoungBlueEyes 12th Aug 18, 8:36 PM
    • 293 Posts
    • 302 Thanks
    YoungBlueEyes
    When I was house hunting I always took 10% off the asking prices when I was looking on RM and Zoopla etc. The house I've just had an offer of £120k accepted on was originally priced at £135k

    From the other side of the coin - when we put our house on the market we had 3 EA's round for 'valuations'. They were £165k, £170k, £185k. I read all the house selling posts on here (I'm a complete newbie at this so I need all the help I can get!). I checked the sold prices for our road, did the 'more like this' test etc. We decided on £150k AP and expected to get it as it was reasonably priced. We even had "priced to sell" written into the description. We settled at £145k in the end.
    • Crashy Time
    • By Crashy Time 12th Aug 18, 8:42 PM
    • 6,331 Posts
    • 2,398 Thanks
    Crashy Time
    When I was house hunting I always took 10% off the asking prices when I was looking on RM and Zoopla etc. The house I've just had an offer of £120k accepted on was originally priced at £135k

    From the other side of the coin - when we put our house on the market we had 3 EA's round for 'valuations'. They were £165k, £170k, £185k. I read all the house selling posts on here (I'm a complete newbie at this so I need all the help I can get!). I checked the sold prices for our road, did the 'more like this' test etc. We decided on £150k AP and expected to get it as it was reasonably priced. We even had "priced to sell" written into the description. We settled at £145k in the end.
    Originally posted by YoungBlueEyes

    Brave move, many sellers would have latched on to "185" and held that delusion for months, maybe even years, wasting everyone`s time in the process.
    • lookstraightahead
    • By lookstraightahead 12th Aug 18, 8:52 PM
    • 370 Posts
    • 349 Thanks
    lookstraightahead
    When I was house hunting I always took 10% off the asking prices when I was looking on RM and Zoopla etc. The house I've just had an offer of £120k accepted on was originally priced at £135k

    From the other side of the coin - when we put our house on the market we had 3 EA's round for 'valuations'. They were £165k, £170k, £185k. I read all the house selling posts on here (I'm a complete newbie at this so I need all the help I can get!). I checked the sold prices for our road, did the 'more like this' test etc. We decided on £150k AP and expected to get it as it was reasonably priced. We even had "priced to sell" written into the description. We settled at £145k in the end.
    Originally posted by YoungBlueEyes
    Which kind of proves my point. Look at the difference between the highest valuation and what you got. Most people would go for the high valuation which is why I always knock 10% off.

    Congrats on your sale and purchase
    • YoungBlueEyes
    • By YoungBlueEyes 12th Aug 18, 8:59 PM
    • 293 Posts
    • 302 Thanks
    YoungBlueEyes
    I devour the posts on here, I was never going to go with £185k ha haa!

    Our only real guide was an old sale. Michelle next door bought 6 years ago and paid £140k. Hers is very similar to ours except our downstairs is knocked through, and our bathroom is above the kitchen whereas hers is sniggled in between 2 bedrooms so it's windowless. Hers is better presented/decorated though. So I thought an extra £10k was about right. Luckily my sister trusted me when I said "I've found this smashing forum full of smart people, and therefore I think those EA's figures are all a bit toppy".

    Even taking all that into account, and going with a reasonable price that we definitely didn't want to go below, we still didn't get asking price. Sometimes people will round it down no matter you put.
    • YoungBlueEyes
    • By YoungBlueEyes 12th Aug 18, 9:01 PM
    • 293 Posts
    • 302 Thanks
    YoungBlueEyes
    The "thanks" buttons have disappeared..... Thanks lookstraightahead
    • Davesnave
    • By Davesnave 12th Aug 18, 9:56 PM
    • 25,794 Posts
    • 94,067 Thanks
    Davesnave
    The "thanks" buttons have disappeared.....
    Originally posted by YoungBlueEyes
    Sorry, I thought no one would notice if I helped myself to a few, but I've put them back and they're only a little bruised....

    We paid the asking price for our property. Being a 'distressed sale,' it was very reasonable and we couldn't find anything wrong with it, except the daft layout and hideous decoration.

    Mind you, if we'd known how much crap the owners had buried outdoors here, we'd have asked for £5k off, I'm sure.
    If you are finding huge gaps between your paragraphs, MSE know about the problem. However, they aren't necessarily doing anything about it. More changes on the way?
    https://forums.moneysavingexpert.com/showthread.php?t=5844460
    • YoungBlueEyes
    • By YoungBlueEyes 12th Aug 18, 10:23 PM
    • 293 Posts
    • 302 Thanks
    YoungBlueEyes
    Ha haa thanks davesnave! I don't know what's occurred there but they have indeed returned
    • Crashy Time
    • By Crashy Time 13th Aug 18, 10:20 PM
    • 6,331 Posts
    • 2,398 Thanks
    Crashy Time
    Of course.

    But I've been responding to your assertion that no vendor should "expect" to get the asking price. Fundamentally, wrong.
    Originally posted by NeilCr

    More right than wrong in this market IMO.
    • goodwithsaving
    • By goodwithsaving 13th Aug 18, 10:30 PM
    • 831 Posts
    • 1,276 Thanks
    goodwithsaving
    More right than wrong in this market IMO.
    Originally posted by Crashy Time

    Argh are you still here?
    Every time you borrow money, youíre robbing your future self. ĖNathan W. Morris
    • Crashy Time
    • By Crashy Time 14th Aug 18, 9:35 PM
    • 6,331 Posts
    • 2,398 Thanks
    Crashy Time
    Even if the asking price for the property is very reasonable or even slightly undervalued?
    Originally posted by NaughtiusMaximus

    How many properties are though really?
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

4,671Posts Today

9,005Users online

Martin's Twitter
  • Ta ta... for now. This August, as I try and do every few yrs, I'm lucky enough to be taking a sabbatical. No work,? https://t.co/Xx4R3eLhFG

  • RT @lethalbrignull: @MartinSLewis I've been sitting here for a good while trying to decide my answer to this, feeling grateful for living i?

  • Early days but currently it's exactly 50 50 in liberality v democracy, with younger people more liberal, older more? https://t.co/YwJr4izuIj

  • Follow Martin