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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To offer 60k below asking price

65 replies

CanStopWillStop · 26/12/2022 00:27

Just want to do a general litmus test: A house I'm interested in buying is listed at 'offers over £500,000'. It's a probate property and I am told the inheritors want a quick sale.

The house was valued at £440,000 in 2021 and it needs full modernisation. It's been on the market for three months. A lot has changed in the housing market this year.

With everything going on in the market right now, is it unreasonable to offer at 12% below (£440k)? I would only go as high as £460k based on the work that needs doing to make it liveable, and so want to leave negotiation room. But I'm not sure if I'm wasting my time even putting in an offer on a 'offers over' house, incase it's CF territory lol.

Also if you're an estate agent with any knowledge on this, would be greatly appreciated!

OP posts:
BelleMarionette · 26/12/2022 00:29

It totally depends on the property and local market, hard to say without specifics

CurlyhairedAssassin · 26/12/2022 00:33

what do you have to lose by the offer?

Original poster
CanStopWillStop · 26/12/2022 00:33

BelleMarionette · 26/12/2022 00:29

It totally depends on the property and local market, hard to say without specifics

Yeah I can understand, I guess to be more specific on what I'm asking: is making an offer below an "offers over" price bad house-buying etiquette or fair game?

OP posts:
Clymene · 26/12/2022 00:34

That seems very odd that it was valued £60k less last year. How do you know how much it was valued for?

Original poster
CanStopWillStop · 26/12/2022 00:34

CurlyhairedAssassin · 26/12/2022 00:33

what do you have to lose by the offer?

Potentially one worry is I don't want the agents to think I'm a messer, as they have other properties I'm also interested in!

OP posts:
Original poster
CanStopWillStop · 26/12/2022 00:35

Clymene · 26/12/2022 00:34

That seems very odd that it was valued £60k less last year. How do you know how much it was valued for?

I paid £3 for the Land Registry report. It says who owns it and what it was valued at the time of transfer.

OP posts:
Netaporter · 26/12/2022 00:39

Place your firm offer at £440k in writing to the estate agent. They are legally bound to pass the offer on. Be clear where your funds are coming from and if you are in a chain or not. If declined, smile and wish the owners all the best, but if circumstances change then to let you know. If anyone needs finance it might not be possible to realise £500k once the ball is rolling anyway and it may come back into the market so stay in touch with the agent…. Good luck!

Original poster
CanStopWillStop · 26/12/2022 00:40

Netaporter · 26/12/2022 00:39

Place your firm offer at £440k in writing to the estate agent. They are legally bound to pass the offer on. Be clear where your funds are coming from and if you are in a chain or not. If declined, smile and wish the owners all the best, but if circumstances change then to let you know. If anyone needs finance it might not be possible to realise £500k once the ball is rolling anyway and it may come back into the market so stay in touch with the agent…. Good luck!

Thank you 💜

OP posts:
Frabbits · 26/12/2022 00:41

Just go for it. If they decline, they decline. What have you got to lose?

sst1234 · 26/12/2022 01:33

What else is favourable about your offer? Are you chain free? A cash buyer?

Netaporter · 26/12/2022 05:52

@CanStopWillStop the only thing I’m wondering about is the fact it’s a probate sale but has changed ownership? Many unmodernised properties come to market because they are probate sales and haven’t been touched for 50+ years but assuming this is England, they wouldn’t have changed hands as a result of the deceased passing, the estate would be selling it after being granted the right to do so via probate certification. Unless the current owner bought it and planned to do it up and then passed and it is his estate? Or this is a sale post probate of the owner prior to this one who was a will beneficiary? Either way, If that is the case, I’m guessing the owner will have paid the higher rate of SDLT on the purchase in 2021 (so most likely near to £25k). If you add this plus fees for conveyancing, fees, bills whilst the house has stood empty you’ll most likely arrive at the fee the vendor wishes to achieve. It isn’t £440k or even £460k but this is not your problem. If the house is only worth £440k and the local market research suggests that the house is only worth £440k plus the cost of a renovation then stick to your guns. Good luck!

Tiani4 · 26/12/2022 06:24

You absolutely can do that
The market is in flux, rapid growth since last year then sudden drop in Sept, more drops, but it's recovering evening out (at least In some areas) in Dec.

Just be aware that you risk alienating the vendors by putting in an offer too low. It's tricky to judge.

When I had multiple offers including one who tried to take advantage of the dip in market, there was one that was so low (£50k+ below market valuation) it offended me.

I declined it and refused to take any more offers from that buyer (when they later raised their offer). The buyer was so aggressive on that move that I wouldn't trust them not to mess around & last minute lower their offer.

TennyTroo · 26/12/2022 06:27

I offered below 'offers over' in October. The house had been on the market a year and had been reduced several times and a sale had fallen through.

They were firmly wanting 800k (down from 1.4 million) I offered 770k being chain free with large deposit. I said this was my very best offer, no negotiation, as it was my ceiling price. They accepted.

If I were you I'd go in with your best offer, if you really want it, and leave it on the table for them to consider.

TwoLeftSocksWithHoles · 26/12/2022 06:54

I suspect as it is a probate sale, the sellers have no pressure to sell (other than to get the money) so are taking a chance by listing it at a high price.
I would put the offer of 440k in, you can always increase it if you want to.

londonrach · 26/12/2022 07:30

Often a proper will be 'sold' for less and registered as such on land registry if within family so don't take what on land registry as it's value. Saying that you nothing to loose and you might be lucky but depends on market etc. Good luck x

MaryGubbins · 26/12/2022 07:41

If the £440k was the price put down when it was transferred it could have been a deliberately low valuation agreed between the two people to manage tax implications. Surveyors usually have a bit of leeway when requested in this circumstance.

Fritilleries · 26/12/2022 07:44

Given the forecast for the market, they'd be stupid to pass up that!

Tereseta · 26/12/2022 07:46

If the land registry entry on the register is value stated then it will likely be an assent rather than a sale. Take it as more of a rough guide. Offer what you feel it is worth and step away if not accepted. Nothing to lose.

Original poster
CanStopWillStop · 26/12/2022 07:48

Thanks for the advice everyone! Will make an offer once EA reopen xx

OP posts:
ACynicalDad · 26/12/2022 07:50

If you want to keep the estate agent onside and not be seen as a CF you can explain the reasoning that you have here. New Year is a prime time for selling houses, if it is still on the market in Feb you may get somewhere. Also with the housing market on the slide they may be more tempted than usual to lock in an acceptable price. I’d try.

NewToWoo · 26/12/2022 07:50

why not just be honest? Say you seriously interested but have a fixed budget. You're aware your offer is low but you're not a time waster, so if they don't get better offers, please would they consider yours?

girlmom21 · 26/12/2022 07:56

CanStopWillStop · 26/12/2022 07:48

Thanks for the advice everyone! Will make an offer once EA reopen xx

Give them your reasons and they'll explain that to the vendor

ScrabbleRabbler · 26/12/2022 08:00

check on Nationwide house price calculator.

www.nationwide.co.uk/house-price-index/

MilkyYay · 26/12/2022 08:02

There is zero "bad etiquette" for making on offer on a house.

Its not "worth" what the seller wants. Its worth what a buyer (you) are willing to offer.

ThroughThickAndThin01 · 26/12/2022 08:06

Clymene · 26/12/2022 00:34

That seems very odd that it was valued £60k less last year. How do you know how much it was valued for?

They won’t want to lose you as a buyer whether on this property or a different one, don’t worry about that.