Ask your opinion how much to offer?

[Wife2b]

We are first time buyers, got our eye on a property that has been on the market almost 3 years (we believe the asking price is too high so suspect this is the reason why). The price came down by 10k in January. We’ve done a viewing, have a second one tomorrow and think it could be a really lovely family home. We’ve not met the homeowners but from what we gather from the estate agents, they’re an older couple looking to downsize now their children have grown up and left.

The property was initially on for 190, dropped down to 180 in January. The front windows aren’t double glazed (stained glass windows have been preserved). I’m suggesting we go in with an initial offer of 168 with a view of increasing to a maximum of 175 at a push. They’re asking for offers over 180 but like I say it’s been on the market a while.

What would you do if you were in my shoes?

I think it is been on for 3 years is obviously too expensive, even with the 10,000 reduction in January.
Weekday have comparable houses sold for?

Yeah go for 168 - they will reject it but when you go back with an offer in the 170,s will sound better for them. Go up slowly - 2 grand a time until your max.

I did a similar tactic with ours and got it down from 220 to 202.

Good luck

I would say that if it’s been on the market and overpriced for three years then they went what they are asking for, as they are bound to have had offers and refused them.

OP, can you share a link?
If it’s been on the market for that long it suggests the vendors are not serious about selling and the house does not have anything that makes it in demand such as being on one of the those desirable streets where anything sells. Going low is good, because it gives you room to increase your offer.

Sorry I’m not trying to be a pain but I don’t want to be sharing anything as it could be my future address. The house is in a small cul-de-sac so very quiet, there isn’t many to compare it to on the street and the ones where listing history is available, they were last sold between 1997-2007 so people have obviously lived there quite a while. Makes it much more difficult to estimate what we should be looking for. It’s also only 1 of 2 double fronted on the street which makes it difficult - there isn’t any info online about the second double fronted one so I feel like I’m a bit blind. Sigh, my mind is working overtime on this one. I’m thinking go in for 165-168 and then increase it. If they don’t budge at 175 I’ll have to call it a day I think. I suppose time will tell it they’re serious about selling.

My other half is worrying about going in too low and then offending them .

I'd query why it's been on the market for 3 years. How many offers? Did sales fall through?

I'd go in at 170k and then you can increase to an absolute and final 175k if needed. Anything lower than 170k does seem a bit low IMHO. Plus if you go in low and up it by 2k say 3 or 4 times you could be seen as taking the mic.

How big will your mortgage be on a 180-190 price?
If the house hasn’t shifted after 10k reduction, with the impact of Covid 19, it’s further de valued. One risky move would be to offer a little higher than your top price and then let your mortgage lender come back and confirm for everyone that they don’t believe it to be that price. Lenders are cautious right now after the lessons of 2007-8. Usually acts as wake up call for unrealistic vendors. However this tactic only works if your LTV is high (otherwise you end up making up the extra).

I don’t think 168 is too low. They will probably reject it, but to me it doesn’t sound ridiculous (i.e. not so low that the vendors, or the agents, would think you were timewasters).

Go in at 168, with the mindset that a yes would be a fantastic result. The like is that they’ll push you towards that 175 figure, but I think in the circumstances I’d be at least trying with 168.