Negotiating on house prices - what's the norm?

[SarahAndQuack]

We're first time buyers and I'm just interested to get a sense of what you think is usual in terms of negotiation. I get the sense it varies by area and type of house.

Is there a percentage under asking price you think would be normal to offer? And are there particular things you should avoid saying so as not to seem too eager/naive? Are there things people find offensive/annoying? (I'm not suggesting we will walk in a insult the carpets then ask for a discount - I mean, are there things that seasoned home-buyers know are rude, that we might not have thought of?).

Thanks all.

I think it varies so much and it’s dependent on loads of difference factors. For example, how long has it been on the market and what is the price compared to similar properties. Also, how much do you love the property, if you like it, don’t play games or someone else may come in and offer asking price or over. I’ve heard the figure 10% but that seems loads less.

Go with a price that you are happy to pay and the vendors happy to accept. I'd also recommend that you don't do the arsehole move of demanding a reduction just as you are about to exchange.

Offer what you think is a fair price and then be ready to negotiate. I don’t think it’s that helpful to think of what’s ‘normal’ as different properties vary so much and each house will have a different value to each person.

Depends which part of uk op?

Thanks all!

@Bloodyhamabeads, thanks, that makes sense.

@AmandaHoldensLips - no, we wouldn't do that!

@ChelseaCat, well, we don't know what fair prices are very well yet, so it's guesswork.

@cantkeepgoing - North Yorks.

Have a look on rightmove within a mile radius for similar properties to get an idea of what the going rate is

We've been searching rightmove on a 30 mile radius for several months. We still don't feel all that certain! I can say when something is way over or suspiciously under, but not the more fine-tuned details. And, the way the market is, we don't know final prices yet - only some have come up.

Depends on demand.

If a house has just gone on market, has ten viewings booked first day and is your dream house and that of seven other buyers then it might go to sealed bids and end up over asking.

If it’s been on a while in an already slow market and has quirks that make it less universally perfect, and you’re the only viewers for a while and the vendor is trying to move to Tahiti next week, try your 10%.

Its a frustratingly unanswerable question.
There is no universal right course to take

You might put in a low offer on a house, and the vender accepts it because they are desperate to complete their change

You might put in a very overpriced high offer in and the vendor might decline it even though its far more than reasonable.

Sometimes people have a set price they have to sell for to make up sizing possible or just some random amount that they feel the house is worth so to offer less would be an insult(which may or may not be a price based on reality or they could be deluded).

Unfortunately its just hard to judge.

If 3 identical houses were for sale

If one is priced for 400 and you offer asking price you've got a. goo deal.

If one is priced 440, and you offer at 95% of asking price you might feel you've got 20,000 off but still pay more than house a

If one was 390,000 and you offer over asking price than you still might have a deal!

And unfortunately how much a house is worth is made up of a million factors. If for example a house is up for 200 and it needs renovation works, the price you would offer would be very different if its a 250,000 house needing 25,000 of renovation or if its a 200,000 house needing 25,000 of renovation. The vendor might have already discounted it for the renovation

Where i am, houses are routinely selling over asking so what would have been the right tatic 6 months ago or even two towns away, wont be the right one here

Its very different if its the only house for sale in a village to if its competing against 10 houses on the same road (even with that are the all identical or will this one insist on more because its the only one with parking)

I offered reasonably on a house that was declined, that house is still for sale a year later and the vendor is declining similar offers because they are happy to wait for the right amount to come

Often on mumsnet you here people say they wouldn't negotiate/entertakn further offers if offended but as long as its within 10% of price then most reasonable vendors won't refuse to enter into negotiation (even if its just to say asking price only)

We viewed a house at offers over 260k, offered 200k and eventually struck a deal at 230k, so it seemed worth going low in the end to us. Prior to that I’ve offered 80k on 95k and settled at 82k, and offers over 140k we settled at 131k but that was a stretch. Depends on the market and the situation with stamp duty I’d have thought. Everyone’s different, what can you afford? How quickly do you need to move? What else do you bring to the table?

On the flip side I’ve listed at 295k and accepted 240k so it all evens out in the end.

@SarahAndQuack

Thanks all!

@Bloodyhamabeads, thanks, that makes sense.

@AmandaHoldensLips - no, we wouldn't do that!

@ChelseaCat, well, we don't know what fair prices are very well yet, so it's guesswork.

@cantkeepgoing - North Yorks.

It depends entirely. My views:

If the property has been on for two weeks or more, do not offer the asking price. Two weeks proves it’s not a hot cake.

Find out the sellers situation. You are in a good position as a first time buyer (eg no downward chain) so going low could help

Get evidence of other sales and what the houses were like. Remember it could work both ways though: you might find your house is priced low compared to previous sales (depending when they were sold of course)

Remember a house is only worth what you’re prepared to pay for it, and agents will always pass on your offer to the seller so you never know. My only advice would be if you love the property, and it’s the first weekend of viewing, go for the asking price

Offer what you can afford but I'm a big believer in putting a low offer in and see where the seller is at. Compare it to other houses sold prices on the street. As a first time buyer you are in a really good position so that is valuable. I would accept a lower offer from a first time buyer as opposed to the asking price from someone in a horrendous chain.

However, I wouldn't go in ridiculously low like one offer I had together with a lecture about house prices and Brexit and how they were doing me a favour!

Also, actively spec out the area. Make sure you really like it. I viewed my most favourite house last out of 10 one day and I knew as soon as I drove into the road!

It is so exciting! Good luck!

Thanks all! This is really helpful. I know there aren't hard-and-fast rules (wouldn't that make life easy!), but I'm really reassured no one has come to say there are all sorts of rude things we could do without realising, or that offering under is rude.

I would always go in lower as a first time buyer with no chain. Especially if the property has been on the market a while.

When we were first time buyers we only went in at 3% less than asking price because there were other people viewing that day and we really wanted the house.

I'd go for between 3% and 6% depending on how keen you are etc. If it seems overpriced then you can go higher.