Is this a rude offer for a house?

[Taq]

House is £850k. We’d be offering 765k, maximum 775k.

First time buyers so totally new to this. Would it be an offensive offer?

765k is 10% off.
775k is 8.8% off.

We’re not in a chain if that makes a difference, and the house has been on the market nearly a month. It’s at a high price for the area but is a beautiful house with not much comparable.

Thank you!

In my experience generally people try to convince themselves that the house they want is magically worth what they can afford, not what they seller is selling for. In addition people look for properties outwith their budget hoping to get them cheap.

the reason is nearly always I want it, can’t afford it, this is my budget, I will come up with a list of reasons why it should be worth my budget.

See this is why I find it all so confusing. Lots of people say that 10% is a completely normal offer and not offensive at all.
Then other people are saying they’d laugh and think we were timewasters, and that an offer 8.8% under is mad.

The house is beautiful, but not perfect there is work we would need to do in order for it to suit our needs.
It is very expensive for the area and yes, I think it is overpriced. Nothing similar has sold in the area lately so it’s very hard to find concrete comparables, but it is definitely expensive for the area. I think it’s the agents chancing their arm more than us(!).

I am even more confused now and wish there was a professional we could ask for advice on this. It’s not easy when you’re first time buyers and are just trying your best with no clue.

And thank you very much for all the replies so far!

What does your agent advise? They should be giving you professional advice. They should also be compiling compatibles.

Maybe it's different in Canada though.

Do people actually read OP posts anymore? The third line literally says 765k is 10% off.

Offer what you like. I’d see the first offer as a starting point in negotiation.

We don’t have an agent? The estate agent selling it I obviously can’t ask. I would LOVE if there was some professional who could help guide us!

As others have said there’s nothing wrong with asking OP. The market is pretty stagnant at the moment & lots of houses are just sitting there. It is early days so it depends how desperate the vendors are to sell. I would ask the estate agents if you think they would be open to a lower offer. We’ve just been through the process (although not first time buyers) & I have actually found the agents very open in terms of providing info about the position of the vendors. Some people will need a higher offer because they have their eye on somewhere of a similar price or above. Others might be selling a family home & less attached to a particular price. I agree that I would be surprised if they accepted this offer after only a month so it’s worth talking to the agents first to see what they think.

@Taq There are lots of people on Mumsnet who insist that 10% off is the new norm and the market has changed. Most of those people are either wishful thinkers who don't own a home themselves and want this to be true, or the typical Mumsnet "would pick a fight with a concrete bollard" posters who just want to wind up a seller.

Regarding the work you want to do, is it necessary work or is it your preference? If all the carpets need replacing because they're stained or knackered or the kitchen needs redoing because it's broken, that's something that should be factored into your price (but bearing in mind it's probably already factored into the asking price). But if you simply want to change things rather than needing to, that's not reason for the seller to accept a lower price.

You can instruct a buying agent in England but it’s not done often and tends to be at the high end of the market.

All you can do is offer and see. Houses don’t have an objective value and most markets are in a very weird place at the moment. Maybe the agent/owner will think you’re realistic, maybe they won’t.

It will entirely depend on the individual circumstances and local property climate. Don't think it is expected that people will always put in a lower offer. When we last sold we had multiple people make offers on the first day. Almost all put in full asking price and ultimately it sold for over the asking price. The one couple who put in a cheeky offer stood out by a mile and despite increasing their offer to full asking price in the second round of offers, we already felt they would be difficult buyers so ruled them out. In other circumstances if the house isn't selling, is overpriced, not had any other interest, the sellers circumstances are different then you might get lucky. I havr previously looked at houses above our price range which have been on the market a while and considered putting in an lower offer which would bring it into our price range. Talk to the estate agent, talk to the seller (if you get the opportunity) not necessarily about money but the circumstances and work out what you feel they are looking for v what is fair and realistic for you. What did they pay for it and when? There are no hard and fast rules. If you are prepared to walk away and lose the house you have nothing to lose. But also agree with others a month is not that long to be on the market and you are talking about a significantly lower offer.

Are you in Canada OP? I see a poster mentioned it but I can’t see anything about it in your OP. Which area are you in?

Of course you can speak to the agent selling the house. TBH why not just make your offer and see?

A house near me was up for £700k and was over time reduced to £550k and sold . The one next door was also on for £700k and price has now been reduced to £595k and it’s sitting there. Prices on some houses can definitely be over priced and people can’t afford the same mortgage anymore but as it’s only been on sale a month that’s quite soon.
Id say it’s worth the offer but maybe in a few more weeks if it’s not sold yet.

If you post a link it might help you gain more advice?

We offered just over 10% under on our house thinking it would be rejected but would be a good place to start. It was accepted mainly because it turned out that they had a deadline that they needed to sell by and there was some urgency on their part.

A month isn't long at all, if you're thinking that they must be reducing by now.
It could be worth asking the EA if they've had any offers. If they've had ones over £800k then I can't think you have any chance
If they're desperate to move and don't need the money then they might accept.

You can’t ask for money off because there are things that aren’t your taste.

Agreed.

I wouldn't think you were rude at all, just a chancer!

I think if you want to offer that low, you need to be prepared to play the long game. Ie nonchalantly put your offer in and just leave it on the table. Perhaps for months. In the hope that no one else offers and they come back to you.

If you have clear justification (and not just the layout isn't my style so will need to remodel) then I don't think 10% is a cheeky offer.

You say there are no comparisons. This might work in your favour as it's harder for estate agents to price. Or it might be a super desirable area as things come up so infrequently because people love it and stay long term. In the latter scenario people may be willing to pay over the odds.

You have to learn to trust your instincts with house buying tbh. No one on the internet can really help you

It's only worth what people are prepared to pay for it. If you feel it's only worth 775k then that's what it's worth to you. It's up to them whether they accept or decline this offer.

Your point around it needing work to suit your requirements - that’s irrelevant to the price. Unless it’s a significant renovation or clearly in need of improvement I don’t think that justification flies!

It isn’t ‘rude’ to offer 10% under, but after a month on the market I think you would be very lucky to have it accepted.

But if you don’t ask, you don’t get.

If they say no you can ask that they leave your offer on the table.

However, as it is a low offer you then run the risk that someone will go in with an offer closer to the 8% under.

So maybe go in at 10% under, then when / if rejected offer your ‘best and final’ and ask for that to stay on the table.

In another month they might come back and say they will accept for another few thousand, or an amount that at this level of cost is neither here nor there, really.

85k below asking is very very unlikely to be accepted. By all means offer it, but I don't know anyone who would be happy to lose out on almost £100k