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How to deal with an offer....

(20 Posts)
Isityouorme Sun 28-Apr-13 09:05:44

Our estate agent thinks we will have an offer on house on Monday but it might be £20k lower than the current price, which has already been reduced by £10k. We badly need to sell but the house has been priced accordingly to take into account things that need doing. I would be fine with a £5k drop, could bear £10k but £20k... We could till get our new house but increases monthly payments. Any advice??

quoteunquote Sun 28-Apr-13 12:54:16

Say no, and wait for them to come back with an offer you can afford to take.

sussexsongbird Sun 28-Apr-13 13:21:39

I agree. When putting houses on the market always a better idea (for next time) to alow for the 5% "discount" people will all expect to be able to get on the price when you decide on your asking price. These days everyone is looking for a bargain and no one wants to pay the asking price for anything.

MrsCampbellBlack Sun 28-Apr-13 13:27:04

How much of a % is it? And are they proceedable etc?

Isityouorme Sun 28-Apr-13 13:29:26

They can move fairly quickly which is great. I'm just worried about them making an offer which is stupid and them walking away .... And I want to move!!! I suppose I had better wait to see what the offer is ....

MrsCampbellBlack Sun 28-Apr-13 13:32:29

I guess it depends on how properties are selling round you, how much interest you've got in your house etc etc.

The market is fairly slow round here and 10-20% off asking price even a reduced one is pretty standard.

Could you reduce offer on the house you want to buy?

flow4 Sun 28-Apr-13 14:29:34

I think it depends on a lot of different things...

Firstly there the question of what sort of percentage £20K is: obviously a £20K drop on a house priced at £100K is more of a hit than £20k on a house priced at (for example) £300k.

Then there's the question of how much pressure you're under: if you've found a house you want to buy, there's a risk you might lose it to someone else if you wait for a higher offer.

Then there's the question of how healthy your local property market is. House prices round here seem to have fallen over the past year, and it's not at all clear whether they're going to continue falling, level out, or rise a bit. Unless your local market is healthy, if you wait, you might find yourself getting even lower offers in 6 months time.

Then there's the question of what you have valued yourself against. I'm looking at a house that has also dropped its asking price, but not by enough I think. I know the vendor is comparing himself with other houses nearby that sold last year for £20-25K more than his asking price, and he is thinking £20-25k is a reasonable discount for the work that needs doing. But I think he is under-estimating costs and over-estimating value, partly because he's a DIYer so isn't thinking about what it would cost to pay people to do the work, and partly because he isn't factoring in the fall in prices since those other houses sold, and partly because he thinks his house is in a better state than it actually is. It's hard to be objective about your own house I think.

In my case, I've worked out what would need doing to bring this house up to the standards of the last couple of similar houses that sold on the same street, and it adds up to £21K - so the £10k 'discount' simply isn't enough. If I make an offer, it'll be based on estimates of the work needed to bring it up to the standard of similar houses that have actually sold, rather than to asking prices.

Isityouorme Sun 28-Apr-13 15:41:52

Thanks guys. I am spending my Sunday afternoon with a calculator and working out sums ..... Yawn! Now I'm nervous about getting that phone call, if it comes!

On a side note, I wish the stress of moving would put me off food but its doing the opposite sad

SoupDragon Sun 28-Apr-13 15:56:11

People rarely go in with their final offer, there is always negotiating.

BackforGood Sun 28-Apr-13 16:00:24

I would assume that any first offer is negotiable from, just as, if buying, I wouldn't offer the full asking price as I'd assume that was negotiable from.
There may be exceptional hotspots with certain higly prized roads or whatever, but you'd presumably know that from local knowledge.
Then of course, it all depends on how desparate you are to move, and how ready the buyrs are to move. Very difficult to generalise.

ILikeBirds Sun 28-Apr-13 16:00:29

If you do really want to sell then I think rather than a flat no, coming back with we can't accept x but will accept x + y if the sale can proceed quickly (or any other condition you want to make). Or saying you'd consider an offer of z but would have to see if you could negotiate up the chain based on that.

I know when we were making offers, there were some where we would have gone higher if the vendors had given any indication they were willing to budge on price. Offer and a straight no we walked away.

MrsCampbellBlack Sun 28-Apr-13 16:32:28

We only made one offer on our current house but made it very clear that we wouldn't be increasing our offer for various reasons.

Good luck - hope its the news you want - and the estate agents are helfpul.

Isityouorme Sun 28-Apr-13 17:03:06

Mrs -do you think that had your offer been refused but the counter offer was £5k or £10k more than your offer, but still less than the asking price, would you have agreed on it?

So stressed !!!??

flow4 Sun 28-Apr-13 17:07:37

I agree feedback and some willingness to compromise is a good idea. I made an offer on a house which was already relatively high (95% of asking price and right at the stamp duty threshold - with hindsight I might have gone in lower, but I wanted to let the vendor know I was serious) - the vendor at first rejected it out of hand. I was left not knowing what to do, and so did nothing! After a few days she came back with a slight reduction, which I thought was still too high, so increased my offer to halfway between the two. This offer was rejected too, but I got no other counter-offer or indication of what might be acceptable. So I left my original offer on the table and went off looking at other houses... And have just offered on another. Basically, if the vendor had been willing to compromise she'd have had a sale, but because she wasn't, she's lost it...

MrsCampbellBlack Sun 28-Apr-13 17:10:47

No we wouldn't as it was the top of our budget and we knew the house needed £££ spending on it. It had been on the market for a while and we were in rented.

Our offer was refused initially and we just left it - 3 months later they decided to accept our offer.

Plus our offer was on a stamp duty threshold and we weren't prepared to go above it.

But I think we were pretty unusual - most people as others have said do a lot more negotiating - we got lucky really as the vendor really wanted to move and we were the only people who made any offer at all.

SquinkiesRule Sun 28-Apr-13 17:35:02

Can you go back to them with a counter offer of 5k off and see where they go from there.

greenformica Sun 28-Apr-13 19:14:49

Maybe the estate agent is preparing you for the worst offer but actually it might not be that bed.

What needs doing to the house?

MrsCampbellBlack Mon 29-Apr-13 19:56:43

How did it go? Any offer?

Isityouorme Mon 29-Apr-13 19:59:12

Got a crap offer so have counter offered.... More waiting!! And to complicate matters we had a viewing today who loved it and are coming back tomorrow plus another first time viewing....

MrsCampbellBlack Mon 29-Apr-13 20:01:08

Well lots of interest is great and puts you in a strong position.

Fingers crossed and good luck.

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