Would you accept an offer of 1.5% less than asking?

[Difficultyear2015]

We have been trying to buy a house since august and have been unlucky on a few properties.

One we like has been on market 6 weeks and is advertised as 'offers over'.

Our max mortgage budget at the time we saw it (5 weeks ago) was 3% under their asking price so we went in with our maximum offer as what we could afford.

It was rejected.

The house is empty and now the vendors are trying to rent it out at the same time as selling it as they havent had the interest in buying it. They have not contacted us to say that they would reconsider our offer.

Its now 5 weeks later and due to pay increase and coming into a bit more money we have been able to get our AIP increased slightly. This would mean that we could go in with a revised offer of 1.5% less than asking.

If it was you and you had a house that was advertised as offers over, but it was sitting there empty and in 6 weeks no one had snapped it up, would you consider a 1.5% reduction or would you reject it and wait for the offer over asking that you want?

I have checked out the details and the house is owned out right and has been a rental property for the last 15 years. The vendors live over 150 miles away. (Im aware none of this makes any difference to the offer they want)

[SpeckledyBanana]

If it's offers over, the EA might have a standing instruction to reject any offer under. Ours did when we sold our last house on that basis.

[lottiegarbanzo]

All you can do is make the offer and see what happens. The faster you do it the faster you'll have an answer. You have nothing to lose by offering - so do it!

I am not that particular vendor, so cannot possibly tell you what is in their mind.

[ImperialBlether]

How much difference is it making, OP?

[SantasLittleMonkeyButler]

If I were you, I'd make my offer - making clear it will not be increased this time - and leave it on the table.

It may be that the Vendors have the house on the market to test the waters as it were - so would sell if a good offer came along - but are equally happy to carry on renting it out if need be.

1.5% doesn't sound like much of a drop - but it does depend on how competitively the house was priced to start with & the Vendors' circumstances, which it is pretty impossible to know. For example, if something is worth £125k but you've decided that the minimum you'd accept is £105k, you might advertise at Offers Over £100k. In that situation, you possibly wouldn't accept £98,500, as that's actually quite a bit less than you wanted.

As an aside, I don't like "Offers Over" prices. I'd much rather a high asking price to work downwards from!

[lottiegarbanzo]

But, the 'offers over' number is not 'the asking price', it's a sum they are saying they would not accept. Rather, they want offers above that figure.

[OlennasWimple]

It sounds unlikely that they would accept offers under the "offers over" price (otherwise what's the point in going with "offers over"?), but if you are in a strong position - no chain etc - then there's a chance they might. Nothing to be lost by making the offer

[Difficultyear2015]

1.5% works out at £5000 in this instance. House is up for 325k.

[lottiegarbanzo]

Though, I'll admit (though see no particular relevance to what is in the mind of this vendor) that I have just recently accepted an offer 5% below an 'offers over' number.

In this case, the estate agent advised a higher asking price, I opted for a lower figure but 'offers over' to get people through the door. I was willing to accept a minimum of 5% below that and did so. My priority is to sell, to as reliable a buyer as possible, as fast as possible (in that order, as it's a completed sale I want to achieve).

[Donatellalymanmoss]

You have nothing to lose by trying, so just offer and see.

[JoJoSM2]

No harm in trying.. overs over might mean they were actually hoping for, say, 5k over. Since they are trying to rent it now, they are probably not that motivated to sell - they'd prolly rather rent it out for a while and then sell for more than sell for less now. But no harm in trying.

[HarryPottersMagicWand]

I'd offer as there is nothing to lose. For 325k, I'd accept 320k. I think they are being unrealistic and petty if they don't as it clearly isn't worth what they think it is.

[shovetheholly]

Yes, definitely - I think £5k is nothing. I accepted an offer £10k under the asking on a much cheaper house, because I was desperate to sell.

[user1473879477]

5 years ago we put in a cheeky offer of 170k for offers over 185k. Increased it to 180k (two increases) and was accepted. It had been on the market for 6 months though.

[Difficultyear2015]

We have been trying to get hold of the agent all week and I have just managed to speak to them.

Turns out the vendor now has decided she wants to rent the house for minimum of 6 months as she believes the house price will go up considerably beginning of 2017 and she will get more for it then.

I explained we wanted to increase our offer to £320k and the agent said she had rejected offers of £320 and more already but she will try.

Sounds like a lost cause to me.

[EssentialHummus]

Turns out the vendor now has decided she wants to rent the house for minimum of 6 months as she believes the house price will go up considerably beginning of 2017 and she will get more for it then.

This is nonsensical to me - renting the house out for six months is just opening the door to additional wear and tear, and potential damage, for not much gain. And I appreciate that lots of places are different, but round my way (Zone 2 London) we're seeing loads of price reductions / stagnations - it started after the Brexit result and has dragged on.

If she has a particular figure in mind and won't sell below that; well, good luck to her. There's not much you can do. It may stay on the market a good while until she either sees sense or finds someone willing to overpay.

[Difficultyear2015]

my thoughts entirely esentialhummus

Seems crazy idea when you have people wanting to buy and are all offering the same value - because thats what its worth!

I am a bit worried if prices will sky rocket next year, but will they? Im seeing plenty of reductions in this area too so a bit missguided maybe.

Fingers crossed they will see sense and want to see to us anyway.

Dont want to end up panic buying when Im 38 weeks pregnant! haha

[crayfish]

Is this in Scotland? Here 'offers over' is really common and it most certainly isn't an asking price. I had a flat on for 'offers over' 95k but I wouldn't have taken less than 110k for it. When I was buying my house 'offers over' 125k meants they were looking for 140k etc etc etc. This was two years ago but i doubt that things have changed that much. It is an odd system but usually the 'offers over' price is a price that the vendor won't sell at, they will often be looking for a fair bit more.

[crayfish]

What did the EA say? Did they give you an indication of what the vendor was looking for?

[Difficultyear2015]

This is UK.

I asked the agent what the vendor actually wants, but there seems to be no idea. Im starting to think the seller is a bit of a time waster and has no intention of selling either way.

[Difficultyear2015]

sorry i meant this is england.
not scotland

[RebelandaStunner]

Our house was offers over. We got it for £5k less. Some stubborn vendors, will not budge though.