Aibu to ask for house buying advice

[Arfarfarf]

Specifically price related.

We are moving to Brighton. Need a 3-4 bed family home and have viewed several recently. We offered 405k on a 450k 3 bed semi (Brighton - house prices are insane). Got flat out refused without counter offer. It has been on the market for 9 months...

Never mind, we found another one for 450k, 4 beds this time. We really like it but how low do we go? Houses seem to be on for months as a rule which leads me to think they are overpriced, but sellers don't seem too happy to accept less. This particular one has only been on for a month and I want to toe the fine line between not overpaying but not pissing the seller off either... won't post link sorry similar ones in and around the same street vary from 385k (though these tend to not be as nice/need some work doing) to 570k which is laughable really...

Our situation: have to sell our own house (priced to sell, we don't want to mess about) which has only just gone on the market, and we have a mortgage agreement in principle.

Help!

But when you look at houses on the market for £405k, are they what you want? That was my point

Especially with Brexit looming and with it a potential drop in prices.

I genuinely don't know, we haven't looked at enough yet. And quite new to all this. Just don't want to overpay and it's quite well known that most people get some money off (several of my friends within the last year bought their house for 5% less and that wasn't their first offer).

Look at comparable houses that have been sold in the area recently and base your offer off that, not a 'finger in the air' blanket 10%.

I certainly might go that low in some circumstances, but I'd expect to have to make an offers of that sort on a good number lot of houses before someone bit. My chances would be best if I was a cash buyer; was otherwise very flexible [e.g. could move in very soon or delay for a while, whichever suited the seller]; if the house was a tad overpriced to start with/had been listed for a while without shifting.

Alarae that is what we've been doing. Estate agents tend to say 'oh but those houses needed work'... Not always easy to tell from pics whether this is the case.

I don't know if you always have to have had an offer on your house before offering, as long as you know yours will move quickly (good area, competitive price, house immaculate) then it makes sense to offer before putting yours on the market.

Brimful our house (even with rose tinted seller spectacles on) ticks all those boxes luckily.

OP, put yourself in the position of the seller. Ask yourself whether you would accept an offer 10% below asking from someone with no buyer. Hopefully your own house is as desirable as you believe it is, and you'll get a quick, asking price sale. But suppose you get an offer from someone like you? Are you able to be that flexible?

I got my three bed house In Brighton for 370k two years ago. Had the cash and completed six weeks after first seeing it.

I worked for an EA in a very expensive area in rural Warwickshire . People in such areas know the going rate & are prepared to hold out for it. Offers that low were for if it needs major work or its been on over a year. I worked for an independent firm & we priced to sell, usually selling within 3months, 6months absolute max. Black Horse chain tho were notorious for bunging an extra 10k on every valuation: & the owners always came down to the actual value we'd have priced it at after 6months. The very few times we had a property linger it was an elderly seller who'd not moved in 30years & thought they should get the going rate, in denial re the cost of the major work needed for a very run down neglected property. This would usually lead to "the Managers chat" (he was very good at unruffling feathers after consistently low offers on knackered properties).

Having just spent a year trying to buy a house OP (in far less desirable areas than Brighton) I don't think you would realistically be able to expect that % off asking; the only exceptions really being if it needed horrendous amounts of work, you were a chain free cash buyer and they were desperate etc.

I've found that most people are maxing out their mortgages when they plan to move so 'need' a certain amount to secure their desired property, they are just clinging on on the hope's they get it so won't budge, because they 'can't'

Would you be willing to drop that % on your property? Could you still afford to buy what you want if you did so? They might hold the same opinion in of their home as you do yours.

I would take the advice given and get an offer in on your own and then recommence making offers. Depending where in bron you buy anything in a decent road will sell. Does it have to be Brighton specifically- you'd get a load more for your money in the likes of Eastbourne, which is brilliant and not at all dead end or run down.

Myimaginarycathasfleas our house will be priced sensibly. You can look up how much a house was last sold for on Zoopla. We are not putting an overinflated price tag on our house and if someone would offer 10% less they would get the house for what we bought it for 6 years ago... If I wanted to buy our house now I would look on Zoopla and also check.what other houses are going for locally and I would realise how well it is priced. It is also in an expensive area similar to Brighton. So tell me this, how come I am being cheeky when offering 405k on a house which was last sold for 310k 7 years ago? They would make loads of money still. It is clearly overpriced so 'cheeky' offers are warranted.

Speaking as a former EA, albeit a long time ago, I don't think you understand the property market. Prices vary from area to area, street to street sometimes. They rise and they fall. It doesn't matter what the owners paid for it seven years ago. You don't know anything about the condition of the house when they bought it, what improvements they've made, etc.

You have asked for advice on pricing and people have given it. Take the advice or don't, but arguing with it won't help you.

Not in the same area but some of the house prices are ridiculous.
My house has only gained £20k in 14yrs yet I've spent more than that on it.
Were looking just over the border into the next area (15mins drive maybe) and the prices are so much higher. As you say, you can look on zoopla to see what they last sold for and they're asking £200k more than they paid 15yrs ago yet the whole house needs a refurb. They're pricing people out and refuse to reduce to a decent price despite it being on the market months.

We saw one a while ago that looked more like a static caravan than a house yet they're asking £250k more than they paid, as it now has a garden room (tiny lean-to). It's laughable really.

Lots of people have told me to go in at 10% less and start negotiating from that point.

Personally I think this is bad advice.

You're focusing too much on % too. It doesn't matter if friends got a 5% discount on a £500k house when your looking for a 10%discount on a 450k house. It's not comparable and you just need to offer what you'd be happy to pay (when you're proceedable that is)... It doesn't matter if they say no or they want more at that point. You've told them the highest you're willing to go so save your time in back and forths. If you'd pay 425k then say that. Then it's up to them whether they come back with 430k or whatever. You can say no then and walk away. Often they'll agree to 425 at that point if it's been on the market for months. Or throw in the white goods if you want them or something...

We moved 2 years ago.
Stop looking at what people paid years ago.
Accept that people have their own reason for moving and price they will accept. Once you have sold you will know exactly what you have to play with. Then you need to find a motivated buyer in a house that is suitable.

Feels as though your offer was a bit low in any event. - a blanket 10% under isn’t good advice for all areas/types of property etc.

However I don’t think you need to hold off making offers before you have a buyer. Ea will simply tell them you are yet proceed able. They can say no or they can negotiate and start the process. They can accept an offer but not take it off the market (At which you might decide to withdraw your offer) etc etc. At the least you are someone who has offered and may return with an increased offer. You are someone on their radar. I’ve sold recently and wouldn’t reject out of hand a prospective buyer even if I had rejected an early low offer.

Sell yours first!
We had our ridiculous offer accepted but we had sold and living in short-term rented accommodation. The “they have no chain. Ready to move” closed the deal and we were cheeky with the offer (if you check similar properties sold in that postcode on rightmove), 8% below and that was pre-Brexit in super-prime area in Surrey. But the sellers had their money in 3 weeks.

henrysn that is indeed the ideal situation to be in if you can afford it and don’t mind the hassle of two moves. It’s what I would try to do.
Well done !

It's not just about what it was last sold for there is also an element of supply and demand. If the house was only bought a few years ago for X and you think them asking Y is too high for the area - go buy another house in the area that has a more realistic price tag. If however there are no other houses for sale in that area at Y and you don't have a choice of properties and it's in the exact location you want....then they are in a strong position to reject your offer to hold out for a higher one.

I think you're approaching this a bit wrong. You're talking as if people are being unreasonable and stupid for not paying what you think is ok and fits your budget, rather than what they've usually been reasonably led to understand is an ok price. Remember they really don't have to sell to you. And as for the one that's been on for nine months - so what? You don't know their position. Maybe they aren't under pressure to sell. And decided no they wouldn't under sell the house just to get a sale.

The prices aren't over inflated if that's now what you have to pay to get a house like that. They're just the going rate.

And looking up what they paid 7 years ago is never going to help you, because that was a totally different situation.

It's like you're ranting what money they've made, and almost thinking they should feel lucky you're offering something.

Sorry but it just seems all a bit of a limited view, and quite hostile. Remember they don't owe you anything, and how much they make is your business.

You're not a good buyer until you've got a sale agreed on yours, and even then you're still not a totally safe bet as yours may fall through. So there's no motivation for anyone also to accept a low offer from you. Someone else, proceedable, might come along and pay more tomorrow

So you like one that's reasonably priced at 450. And how low can you go? It's more how low they will go. I agree with the poster who said 435 likely to be the minimum. I'd start at 430.

I meant it's like you're resenting what money they've made

And how much they make isn't your business! Sorry ☺️