Should I accept this offer on our house?

[Alana2000]

Put the house on the market in March, just before the pandemic for £300,000. Had a few viewings which didn't come to anything and then UK went into lockdown two weeks later. Now the housing market is open again, we have had another three viewings and someone has offered £270000.

As it is predicted that house prices are likely to fall, should we just accept this offer? I don't think that the price we put it up for was overvalued at the time of valuation (pre-pandemic) as four estate agents suggested the same price.

We don't have to sell, as we could rent it out instead (if push comes to shove).

Any thoughts would be a great help!

I work for an estate agents (back office) but we seem busier than ever whilst we play catch up. We have been having silly offers but thoughts amongst the Valuers are that things will bounce back and people are trying their luck - if you aren’t desperate to move I would hold on

"@jb23newmum"

Thank you for this advice. That's really helpful.

I think it depends on what part of the country you are in, if it’s a area when you don’t think a lot of people will be made redundant then maybe wait !!

Just look what Rolls-Royce have done today!!

Think a lot of companies will be throwing there staff under the bus in the next three months!!

My friend put her house on just before lockdown too. It immediately had an offer for about the same below as your offer. The EA suggested taking it, whereas normally he’d say hold out for more, because he thought the market would struggle.

Thank you both Nanalisa60 and Honeyroar

The house is in the WV3 area of Wolverhampton if that changes anything.

To be fair £270k is exactly 10% below asking so I think it's an entirely reasonable offer with which to start negotiations.

Do you know what your bottom line is? Depending what that is I'd go back in with a counter offer and try to meet in the middle.

No, the first offer is a starting point you can go back with something higher and they can counter offer if they want. Banks are also saying that any drop in the market will likely be brief so I wouldn't worry about that too much.

Yes, i would also suggest a counter offer. E.g you go back with say 290 (or whatever) then they may come back with 280 etc until you agree on a price that you are both happy with.

If you are happy with a price around there you could try and meet in the middle? Perhaps you can say you were hoping for £29000 so can you meet in the middle? So you are interested but want a better offer?

I'd counter at £290 or 295 and settle for £285-290. But of course depends on your area and competition. I monitor an area of sw London as I'm moving there next year and I notice the stand out properties are going under offer without reducing asking price. Though of course I don't know what the accepted price is. The bog standard properties are stuck and need to reduce, but probably would have had to anyway.

Many thanks ApocalypseNowt and HappyDinosaur

Would it seem sensible to make a counter offer of £280000?

I'd probably say 285-290 and settle for 280-285, but if 280 works for you and they have no/strong chain then go with it.

Puffthemagicdragongoestobed squiglet111 and Pipandmum

Thank you also. I didn't see your posts when I wrote mine. Do you think we should counter offer £290000 and try to meet in the middle?

In your situation, I'd probably wait and see what comes of the other viewings. We made an offer on a house before lockdown, which was excepted (before lockdown). Our offer was 15k under asking price and it was accepted quite quickly. I think that's probably a fair-ish offer depending on where you live, but if there is no reason you have to say yes right away. They could come back with a counter offer, but I'd want to see what other interest there, especially if you live in a desirable (at the moment) area - like somewhere people might be wanting to move away to.

Depends on their position too; if they’re cash buyers, and you really want to move, it’s probably worth £10k. I think it’s too much of a reduction personally. I’d be saying we might be a bit flexible but nowhere near 10%, let them come up a bit and then creep down to meet them about 290?

Yes. Try and give the buyer the last word, makes them feel good.

Go back with 290000 and tell the agent you CANNOT go as low as 270000.

See what they come back with. If 275000 you know they are trying to buy cheap, assuming a small crash, seller uncertainty.

mindutopia , MrsWooster and CuriousaboutSamphire

More great advice. Thank you so much!

Good sign that you've had more viewings, OP.

What's the buyers situation? That has a bearing.

No harm in telling the agent you're looking for more, especially as there is interest.

We made an offer on a house a few years back. Made it clear it was our best offer. Estate agent said "oh no, but they'd accept X". We walked away as we had another option (which we offered on and bought).

Right now, I would have thought 10% below asking is very reasonable. It depends where you are in the country, but I'm struggling to see how things will go back to "normal" anytime soon. I know of people (good earners) who are currently furloughed but are expecting to be made redundant in the next couple of months. I know of several that have been made redundant already (mainly in the travel/transport sector). If you're happy to wait 6-12 months then it's probably worth a risk.

I wouldn't worry too much at this point about macroeconomic data and scaremongering about house price crashes. It's all about the market in your area and the type of house first and foremost. We sold last year in the middle of brexit and stamp duty uncertainty and I am sure forums were full of doom and gloom. But we got four or five offers within a week of going to the market, one of them at asking. Our house was in a good spot in a popular neighbourhood in London, required little work and was attractively done up. Not many houses were coming on the market and, if they did they got snapped up very quickly.
Of course people will argue that the economic impact of corona will be very different, but again, look at your local market first before accepting low offers.

ritatherockfairy We made an offer on a house a few years back. Made it clear it was our best offer. Estate agent said "oh no, but they'd accept X". We walked away as we had another option (which we offered on and bought).

This is my big fear! They are currently renting with nothing to sell so they are attractive as buyers

Puffthemagicdragongoestobed
Thank you for your post. The house is in what's considered locally to be a "Good" area. On the other hand Wolverhampton may be badly hit by Corona as it has a lot of manufacturing.

You could always ask for more, but if they say no £270 is their final offer, then you can accept it.

Can you afford your next house if you get 10% below your asking price? If yes, and you're ready to move, why delay? Personally, I hate playing guessing games with the market: will it go up or down? Actually nobody knows - PPs have given the view of two different estate agents, one saying prices will drop further, one saying they'll bounce back (both are right, of course, depending on the time scale).

Covert19

Thank you for your reply. We aren't buying another property in the foreseeable, so don't need a certain price. We will be renting our next property while we suss out the new area.

Are you prepared to sell for less later? Can you counter offer?

I'm not sure how the market is going to bounce back when we have mass employment, potentially more people wfh which will impact other industries & locations & are all looking at less disposable income due to increased tax hikes & likely wage stagnation