What's the usual 'discount' people expect off the asking price?(23 Posts)
I think nearly all sellers put their house on for higher than they are expecting to get, knowing they will have to take a lower offer.
So on that basis is there a usual amount off that people expect? I'm presuming if there is then it will be a percentage? Any thoughts?
based on my very limited experience I always offer 10% ish off and then move upwards if they reject that and I want the house - BUT it depends on the market and how much you want the house.
The exception to that was my first house when desperate for somewhere to live I paid the asking price of £8,500 in 1978
On my last house I offered what I could afford and said - no more - and that worked but it was 2011 and the market was so slow I had to drop £5k on the house I was selling.
In my area, 10% OVER the asking price is becoming the norm!
Other places 5-10% below was usual.
I don't think there is a 'usual discount'. If the market is strong and there are plenty of buyers around for your type of property, then it'll probably sell for close to or even over, asking price.
It also depends on the buyers and sellers positions - a cash buyer with no chain and mortgage in place could probably get a better deal than someone who has a chain behind them. Equally a seller who's in a hurry may accept a lower offer from someone who's in a position to move quickly.
Having said all that, I'd use 10% off the asking price as a starting point unless the house had been on the market for a long time or I was in a particularly strong position, ie no mortgage to sort out.
Depends where you are. South London borders of Surrey and rarely going to get under asking price unless the house is on way over the mark. Generally here you are looking at 10%over asking
Depends - popular "family" houses are going for in excess of the asking price, as much as 10% over here.
The very top end of the market doesn't command those sorts of prices - asking price or very slightly under I'd say as a rule of thumb.
But there was a similar post the other day - it comes down to the seller and I said the same thing on the other thread. Every time we have sold, we have put the house on for what we thought it was worth (not what it was worth plus a bit extra) and told the estate agent that was what we wanted. No games, no backwards and forwards and they could reject any offers immediately that weren't at or within a couple of thousand of the asking price. Sold within a couple of weeks each time. The only time we accepted less (4% below the asking price) was the start of 2008 when we could see prices falling and we were moving into rented.
We paid 7% more than asking only because of another desperate buyer who bid against us and drove up the price!! I fact we had to start our offer at 1% over asking because there were offers at asking price that had already been rejected!!!! The house was very much what we wanted and no chain on either side plus I was 7 months pregnant and hoping to move in before delivery. We'd just lost another house we were halfway through buying when the seller upped his price. So we caved and paid too much. I think we paid more than what it was worth, but the timing of it was too crucial for us and has totally paid off. So perhaps it was worth what we paid 'to us'. Hope we recover the extra when we sell, but I don't see plans to sell in the horizon...so who knows. I'd say the area, sellers, buyers, market - everything influences the final price.
house prices in the news has some conflicting messages at the moment
this is interesting
city am price drops
I think the problem is that the EA's are telling buyers that the selling price is negotiable (in our case).
Agree with everyone else, se London Kent border, not a chance of under asking price on most normal family homes, most sell within a week for over asking price
My estate agent (SE London) has told me their tactic is the underprice so that there is a flurry of interest and it ends up with bidders going against each other and offering considerably over asking price. They showed me their stats and ~70% of their properties go for over asking price, but only because their asking prices are deliberately on the low side.
I think it all depends on what the EA puts it on for and how they operate.
Noplanyet - you are so right! We were caught in exactly this situation (2 years ago though!!)
I would have assumed up to 10% discount but in finding that good houses/areas in Hampshire attract lots of offers and above asking price!
Completely depends. On the market but also on the particular house.
We were buying in a "buyers' market" a few years ago. Offered 5% under on a house as that's what other places had been going for. It went for at least 10% over because it was on a very sought after road where houses hardly ever came up.
It depends on how popular the area is. In London, you won't get much discount usually.
If the property has been on for a while, you may get more if they are keen to sell. 10% is a lot to get off and really depends on area and if a property isn't selling.
We found a property we really wanted and that would attract a LOT of interest so we went in at the asking price in order to help secure. It worked, and that was in Herefordshire, not London. It was/is a rare opportunity so we bit the bullet.
Where we are (not London!) houses are all going for well above asking price, and quickly.
Very recently, we put our house on the market for the minimum amount of money we would accept for it, and it sold for much more.
We got full asking price for our house 3 months ago, put in an offer of 5000 less on new one and got accepted one day after it went on the market... I never play games I offer what the house is worth to me final price. If I lose out I lose out I don't want to risk somebody else getting the house I want
tatty - I am surprised at the Herefordshire comment (you don't mean Hertfordshire do you) as it is where I live and if this is the case (discounting the Escape to the Country syndrome) I would be very pleasantly surprised. True there are lovely properties out here in the sticks but they are few and far between!
We sold our house in Kent for the full asking price, within two weeks, and most good stuff goes so quickly round here. The house we bought had a few things that would put some people off, and was on the market in the middle of winter when most people weren't looking, so we slightly got under the asking price...however it was on a high price!
I don't think there is a standard percent discount people expect, it does depend on the area.
We recently bought a house and paid 8% over the asking price. They got asking price offers an hour after the open house viewing. We offered 5K over which was refused, in the end a bidding war with 6 other parties meant we paid over the odds!
We really liked the house though, the only house that me and DH have liked, it was under budget for us, and hopefully our long term house, so it was kind of worth it. I think it was priced on the low side though...although I think even the estate agent under estimated the level of interest. It was unique becasue it had a larger than average garden and in a very quiet street even though very near amenities, plus had a good kerb appeal, plus a west facing garden.
mollie123 sorry, late back to this, but yes, I meant Herefordshire. The property we bought isn't nice at the moment, but it will be by the time we've renovated it! It's in 1.4 acres and is a small, double fronted cottage - something I've always wanted. It'll be chocolate box lovely by the time I've finished with it
Bit of a challenge but will be worth it. It's right on the Shropshire border though so doesn't feel like Herefordshire (yet!). We went straight in at the asking price - it had lots of interest and people were turning up without appointment to view whilst we were there, so very popular.
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