If this was your house would you accept the offer?

[JustWondering125]

I'm a FTB and have seen a house I like, it's on the market for £195k and has been on the market since January 2020. Other houses in a similar but very slightly lower price range are selling like hot cakes just now but not this one.

I went to view it last week and really like it but know for a fact I can't stretch to to the asking price. I could get to 190 as an absolute push but 185 would be much more reasonable. It needs some things updating such as the bathroom is the original and doesn't even have a shower. The owners haven't done any work to it by the looks of it since they bought it 14 years ago, all the windows, kitchen and bathroom are what the property was built with 20 years ago - not sure if that's relevant. But it would certainly be liveable it's not in a state of disrepair it just needs a refresh.

So if this was your house and a first time buyer came along and offered you £175k (as a very hopeful starting price) would you refuse to deal with them any further or would you negotiate? Or accept?!

It’s a fine line -.too low and they’ll just tell you to sod off, too high and they’ll bite your hand off.

If I could comfortably afford £185k and it had been on the market over a year, I would probably go in at £180k with room to increase. I think £20k off on a house under £200k is a big ask, but they may have found a property so they may be desperate.

175,000 is a reasonable opening offer considering. It depends how keen they are to move on. If other similar properties are selling at lower prices, it does suggest it’s overpriced.

@EmptyOrchestra hmm yes I see what you're saying. My logic was it's 10% below the asking. I think the fact it's been on for over a year maybe changes things, if my house was on for over a year and I saw others selling quickly I think I would be very keen to have any offers but I'm not the seller so I guess I won't know unless I try.

I think you should offer it (could possibly say the reason is because of the updates around the house that you estimate would cost around £20k). If they reject that’s fine, if you want to you can try to negotiate up. If it has been on for over a year though it either means 1. They haven’t had many offers because of the decorative state and it being a little overpriced. In this case they may be pleased to have an offer, or 2. They are adamant they will not sell for less than £195 and happy to wait for the magical unicorn buyers who will overpay to suit them . If it is case 2 you still haven’t lost out by offering (will probably not get it though) but if case 1 there is a good chance.

Go for 175. 10 % reduction is fine.
Leaders are increasingly cautious about offering mortgages with five even ten percent deposits. They anticipate a fall in prices in the medium term. The housing market is overpriced. If they won't accept sit on your hands and wait for something similar but more reasonably priced. Good luck

Tricky. I doubt that have been without offers since January- especially if nearby properties are selling fast. It might be that they are willing to hold-out. We were those sellers - quite happy to stay as long as it took as it was more of a ‘fancy a change’ than anything.

Your offer feels quite low and could possibly be insulting. We all know that it’s a business transaction, but these are people’s homes and it can feel quite personal. I agree at starting at £180,000. There may be scope for negotiation post-survey too.

I don’t think you can expect sellers to fund your refresh - albeit indirectly. And be a bit careful how you articulate that in negotiations as it can get people’s back up.

Good luck!

Well it’s obviously overpriced at 195k as it’s been on the market so long.
I’d offer 180k but expect it to be rejected

It’s a business deal. Your starting price is a reasonable one. You will probably have to raise it, but stick to small increments.

The house isn’t selling, the owners need a reality check by the sound of things. Only a fool gets so offended they won’t deal with someone who has money to spend.

Seems like some think it's ok and some don't!

I'm not expecting them to fund my renovations by taking a lower offer, it's more that it won't ever be worth much more than what it's on the market for. If it had newer windows, kitchen etc. then it would be worth the £195k, it wouldn't be a good investment for me to go and sink £30k into it and only be able to sell for £5k more than I paid if that makes sense?

Don’t worry about them, worry about what you can afford and what the house is worth to you in its current condition. Apart from cosmetic, if it hasn’t been updated in so long parts of it might be requiring updating sooner rather than later. Offer accordingly, they don’t have to accept, but you shouldn’t pay over the odds for a house that obviously needs work.

@JustWondering125

Seems like some think it's ok and some don't!

I'm not expecting them to fund my renovations by taking a lower offer, it's more that it won't ever be worth much more than what it's on the market for. If it had newer windows, kitchen etc. then it would be worth the £195k, it wouldn't be a good investment for me to go and sink £30k into it and only be able to sell for £5k more than I paid if that makes sense?

Yes, absolutely, but that’s irrelevant to the vendors. They may not be in a hurry, may be a group of warring siblings selling their dead parents’ house and not agreeing about time scales and price reductions etc — we’ve had experience of both in 2020 when we put in a low offer for an expensive, potentially-beautiful wreck in a beautiful, prestigious location that had been on the market for a year.

(Our logic for the offer was because it needed so much work done, and because it was in such bad condition we couldn’t even have camped out in part of the house while the work went on — but obviously, that’s not the sellers’ problem. They are three siblings who all live in different countries and don’t get on, and presumably at least some of them think it’s worth holding on for the asking price, even though it’s now been on the market almost two years, and probably deteriorating further.)

Which is a long way of saying by all means make the offer, but be prepared for it being rejected, and think how much you’d be prepared to raise, if at all.

@Fleapit the sellers are a couple with two kids who have outgrown the space from what I can gather, going by how long they've owned it and the rough ages I think they looked it was probably their first house bought pre children. The bedrooms are quite tight.

I've been the offspring trying to sell a property with siblings so know how tricky that can be! In the end we took a very low offer just to get the building off our hands and allow us to move on with our lives

I would offer but if its been on that long I wouldn't be surprised to find the have rejected offers in that region already. Some people refuse to believe their house is worth less than they want.

I'd be more concerned that something g major has come up on surveys which has made it unsaleable. Have the EAs mentioned if it's ever had offers/surveys done?

[quote JustWondering125]@Fleapit the sellers are a couple with two kids who have outgrown the space from what I can gather, going by how long they've owned it and the rough ages I think they looked it was probably their first house bought pre children. The bedrooms are quite tight.

I've been the offspring trying to sell a property with siblings so know how tricky that can be! In the end we took a very low offer just to get the building off our hands and allow us to move on with our lives [/quote]
How did you get around the FTB thing then?

My friend did this. Doesn’t sit right with me.

Ah sorry just re-read. I assume it was through probate rather than ownership.

My friends dad bought a house and put it in their 4x names when they were younger. Somehow they got round this and he was then still a FTB.

I'd say to the estate agent that it's overpriced for those selling in the area and it needs XYZ work doing so you'll offer £175 - then walk away for a bit, look at the other hot cakes on the market.

If you don't want to lose it then perhaps 180 and end up settling a little higher as it's usually a negotiation from that first bid
Good luck

Presumably, the OP was selling a property with siblings as part of an estate. If she hasn’t bought a house before she’s a FTB.

Of course make the offer. If they don't like it, they will either make a counter-proposal of what they can accept, or reject it and you can debate whether to increase your offer. It's not ridiculously low, though personally I'd probably be thinking 180 if I was them.

@BernadetteRostankowskiWolowitz no they mentioned one note of interest but made it sound like that was a non-starter, I'll maybe ask about offers as I'm planning on a second viewing!

@Doomsdayiscoming yes that's right the house was left to us but we were never the owners, it was owned outright by my parent then it was sold as "The Executory of JustWonderingSenior". I've never bought a property though.

Difficult one, if you really want the property, they may not consider you as serious buyer if you put in such a low starting bid, personally I would go in at £180k, have the EA given you any indication of what would be an acceptable type of figure, offers they may have rejected in the past? How motivated are they to sell? Good luck OP.

Id offer 180 and justify it by saying similar properties around the area have sold for a lower asking price than there. Also that it needs updating (I find listing specifics here helps - windows/kitchen/garden needs work etc etc). Dont forget when (if) you get a survey done you can negotiate again depending on whats found (structural work, pointing needs doing, roof needs work).

Remember that the agent works for the seller. They want to get the best price for them, but will also want it off their books.

The difference in commission between £175k and £195k will be minimal and certainly not worth the extra work of showing more people round, more admin etc.

If it's been on the market for over a year, chances are there's something wrong that you haven't been told yet, but it doesn't sound like this is the case, or the sellers aren't realistic about the price, which does sound a little high given the condition.

However, you have to think about how much you like it, I'd maybe start at £175k and go up to a max of £185k, or maybe a little higher if you can live with the kitchen and bathroom a bit longer - it won't take a huge amount to put a shower in if that's a deal breaker, but otherwise, how much can there be wrong with a 20 year old kitchen and bathroom apart from not latest style?

We've lived in this house for 15 years and both the kitchen and bathroom were probably done in the 1990s or even the 1980s, so could easily be 30+ years old. We replaced the kitchen a few years ago and that was getting tired, but we still have the same bathroom and apart from it being dated, it's good quality and absolutely nothing wrong with it.

Honestly it doesn’t matter what anyone else would do. It’s irrelevant. They may need that money to move on, or simply think that’s what it’s worth and they won’t go lower. Or they may be desperate (doubtful or they’d drop the price) and sell it to you.

All they can do is say yes or no. Make the offer. What internet randoms would do is not relevant.