To offer less than asking price even though it's offers in excess of?

[jnfrrss]

This is in England, it was on at 460k, reduced to 440k but now says offers in excess of that. Seems funny to say excess if it's been up for sale for 8 months and not sold so reduced.

I want to offer 395k as thats what I think it's worth

So, OP, have you had a response from the sellers to your offer yet?

Many years ago we offered a very cheeky offer subject to survey and reports for a house that was being sold after the elderly owner died, to our absolute shock, they accepted. After all the reports we went back and asked for more money off, and the estate agreed. It's worth putting in a cheeky offer, they can only say yes or no. But you may find out what their bottom line is.

They might decide a cheeky offer from you is better than no offer ....

If you don't ask, the answer is always no!

Honestly, I don’t see why I should be grateful that people come round at bedtime because it’s the only time they can do, turn their nose up at everything that most people would see as pluses (I was told a 10 minute walk to the tube is very very far and completely unmanageable), then offer me the monetary equivalent of a river boat. If that makes me entitled, I’ll own it.

Laurie, you sound like you’d jump at the offer of half a Kit Kat.

Any update OP?

The pretty holiday cottage just down the road from me is on the market and I think it's probably overpriced by about €100k. The owner lives in the UK but rarely uses it now as she's finding the travelling too much as she's in her 80's. I think she (or her daughter) will have relied on the agents valuation (she's a sweet old lady) but I suspect it will take a while to sell it unless she's willing to accept a much lower offer. You can get something with better BER rating, more space and a sea view for around the same price so I think it's likely to sit empty for a while.
I think if people live well outside of an area, they might not be au fait with the local housing market and it's nuances.

Give it a punt. Haggle. If the inheritors say no, up your price if you really want the house. The trick is not to get emotionally involved or take offence.

Your main problem is that four people have to agree to a lower price. One of them might be better off and in a a position to wait, one might be unaware of how the house market works, one might be terminally stupid - you just don’t know.

What about talking to the agent to get the picture? They are supposed to work for the vendors but they only get paid when they sell the property so their interest is best served by a sale.

There is a balance between negotiating and just taking the piss though. We had a very low offer for our flat (after 3 viewings) and I know the couple offered asking for a different flat in our block. Fair enough they liked the other one more but it just annoyed me. They then upped to near asking but we accepted an above asking price offer from someone a week later. If they’d have gone in at the second offer we’d have sold it to them. They were desperate to buy in our block so they shout themselves in the foot really and wasted everyone’s time with multiple viewings.

Yes, exactly, there is taking the p and op has no idea if one of the four vendors is going to refuse to deal with a p taker. If someone offered very low on a property of mine citing "well I don't really love your property, it's not perfect for me, so therefore I think I should get it cheap" I would politely suggest they continue searching for something more suitable. Anyway, expect to see a triumphant update from our op who appears to have the answer to everything.

No reply yet, will phone them this afternoon if I've still not heard by then.

Of course you should make an offer. The worst that can happen is they can say no. Also, if you have any perks to offer, such as not being in a chain, or you are a cash buyer, make sure you say that too. Good luck!

Blimey that's a big drop whether it's fixed price or offers over I think I'd just laugh at that if I was seller

Where we are (Brighton) estate agents regularly over-value houses (possibly for the commission?) Then houses sit on the market for months and people get bored of looking at them or think there's something wrong with them.

'Offers over' is a marketing ploy, one I've noticed they use when they've had to reduce the price of a house they previously over-valued. Personally, I would always make an offer (a reasonable on), sellers' circumstances differ. If they are older and they don't have a mortgage they may well be willing to drop the price. My brother made an offer on a house that the estate agent called 'cheeky' - but it was accepted. Ahead of Brexit it's a buyer's market, I'd say...

While it may feel like a dream house, its still a business transaction so you don't want to pay over the odds and be left with negative equity.

You could either offer what you think its worth, or put in an even lower price and then go in with a counter offer of what you think its worth, afterall, no matter what the estate agent says, they are legally bound to submit your offer to the Seller.

I can't imagine the Seller being offended, but if they say no at least you know this and you can move on and find somewhere else.

If you have already got a buyer for your home or if you are a cash buyer, it will give you more power.

Good luck

will phone them this afternoon if I've still not heard by then

From experience I wouldn't be too quick to chase them, especially as you only made the offer yesterday

With four of them involved everyone's probably calling everyone else, and personally I'd let them come to you

Honestly, I don’t see why I should be grateful

No-one's asking you to be grateful. Just not pissed off with people for disagreeing with you on the value of the house. That's really the whole point, take emotion out of it. Or alternatively react how you like, but remember that only your emotional energy is being expended. The couple in question have moved on.

There's no such thing as an offensive offer. Just offers that you are prepared to accept and offers you aren't.

I think there is disagreement on the price and then there’s massively undervaluing something just to try and get out of paying a fair price for what it’s worth. If its the same as a business transaction then surely it’s the same as your wage. What if I offered you £5k to do a job worth £25k because that’s what I “think” it is worth. Or offering £3 for a £15 meal in a restaurant because I didn’t like the meat sauce. It was perfectly fine and nothing at all wrong with it but I think it’s onlh worth that. People can feel how they want by the way.

What if I offered you £5k to do a job worth £25k because that’s what I “think” it is worth.

I say no and I walk away. Just as one is able to do on a property transaction.

The issue with property is that there isn't an objective way to come to a 'true' price, because that doesn't exist. A property really is only worth what someone is prepared to pay for it in the current market. And property markets can undergo seismic changes in short periods of time.

there’s massively undervaluing something just to try and get out of paying a fair price for what it’s worth

If the seller's in a strong position with plenty of other bids, why on earth would they put up with that? However, if the seller doesn't get any other bids, then perhaps they have to accept that this is all the market is prepared to pay. It's all circumstance.

However, the seller's perception of what a property is worth can be very far from reasonable and doesn't automatically demand respect. To give you an example, we bid on a house that was originally on the market for €600,000. They reduced the price by €100,000 and we put in a bid considerably lower than that.

At the time, this house was being discussed on property boards as being the most over priced house in the country. So was our bid 'cheeky' (I'm sure the seller thought that) or realistic? Or does it even matter? They rejected our bid and two years later it's still on the market. But to pay even the reduced asking price for it would have been really bloody stupid, so no regrets at all from us on how we handled it.

That's an extreme example sure, but just to make the point that the asking price itself isn't necessarily even in the right ballpark, so I see no problem at all with offering something considerably lower. The seller always has the option of rejecting it.

Given that our house was in between two which had previously sold the month before for the same as our asking price, three had sold on the street for £15k more in the previous 6 months (ours and the others were lower due to the kitchen decor) and they are all structurally the same. It was categorically not overpriced. It was fair and reasonable. A lot of people on this board are making the assumption that sellers don’t know or understand the value of their house due to sentimentality. That’s not the case.

So you're determined that your price was reasonable. They weren't prepared to pay that. You couldn't find common ground and you didn't do a deal. Fine.

However, there was a potential situation in which you were more desperate to sell and you didn't have any other offers. In which case they could have secured the house for a price they were happy with. Luckily for you, you weren't in such a weak position, but the potential buyers don't know the individual circumstances. I absolutely can't blame them for giving it a go.

I’d agree. The same posters who are adamant that prices are far too high are the same ones happy to make ridiculous offers. You can check what they eventually sold for on zoopla to see who was closer to this mythical true value.

I think there is disagreement on the price and then there’s massively undervaluing something just to try and get out of paying a fair price for what it’s worth

Yes, of course, this is correct. There is also a key point missing though and that is there is also massively over valuing something because that's personally what you wish or need it to be worth. It works both ways. Under or over valuing.

Yes, some folks will try to pay less than market value, but this seldom works because someone will always pay the right price if it's marketed correctly. Some folks will also try to charge more than market value. But this also seldom works because either you won't get viewers or you will only get low offers.

Ultimately trying to charge more than it's worth or pay less than it's worth seldom works. And that's why folks negotiate.

The issue is what it's worth is subjective.

A house is only worth as much as someone will pay for it. Worst case scenario they say no.

Of course an offer isn't unreasonable. It might be rejected, but thats not unreasonable either. This is how property (and sales) buying works.