To offer 60k below asking price

[CanStopWillStop]

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!

Oh I see, it's a probate valuation. I wouldn't put much store by probate value. They typically come in 10-15% below market value as the agents want you to list it with them for any future sale.

And it's not just refurb costs - you need to also consider how many properties come up locally with the basic bones of the house, potential for extension, proximity to schools etc etc.

I'd assume that if it's listed for offers over £500k, that's what they're hoping to achieve. I'd probably go in a wee bit higher if I were you but depends how badly you want it and how much interest you think there'll be based on factors as per above.

Yeah they won't accept that.

I've found that when a property is advertised as Offers Over, it means they're expecting tens of thousands of pounds more. It annoys me as if they want more money, advertise it for more.

You could give good reason the estate agent, however, such as how long it's been on the market, the condition of the property, any likely specific upgrades like the heating, windows, etc, and what makes you appealing - are you a cash buyer or do you have an agreement in principle ready to go?

Thanks for the responses, all incredibly helpful!

I am a FTB with a mortgage in principle that would cover up to the asking price of 500k. But I wouldn't be able to move in if I bought at that valuation as it needs a complete refurb, new windows, radiators, damp proofing etc.

It's a tricky time to buy as we anticipate a housing slow down next year, so ideally could hang on and see what the market does, but I need to move asap hence why i'm thinking this house is worth a shot. I will make the offer next week and report back :)

Fingers crossed for ya.

OIEO means they want over 500k but the agent is trying to encourage 480k+ A 60k below asking offer might not even reach the owners - it could just get filtered out & then the agent doesn’t treat you seriously as a buyer. So using this strategy depends entirely on how desperate you are to buy it.

An Estate agent is legally obliged to pass all offers onto the vendor up to the point at which contracts are exchanged.

You have nothing to lose - state you are in a good position to buy and need funds to refurbish the property and you are looking for a long term home.

As a first time buyer with a mortgage I would definitely refuse your offer. People offering a large percentage below asking are usually cash buyers so I doubt your offer will even be considered.

We bought our house for 75k and it was marketed for a year, in a falling market, with no adjustment on original price, at 120k.

Accepted and bought. Surveyor valued it at 90k.

We offered 260k on a house that was offers over 300k (they had had no other offers). They came back with 270 which we agreed.

Another house we liked before we found it was on at 280k but the work needed meant we didn’t think it was worth more than 250k, which we offered. They declined, remained on the market for some time and later sold for 235!

Worth asking, even if they say no now, they may eventually come back.

I would. I walked away from a property because the estate agent was being too cheeky about the asking price and told me it was on for an additional 30k over advertised price. I told him I was happy to keep looking and reiterated my budget. Several months later I'm still getting emails asking if I'm still interested.

Might give it another month then drop a really low ball offer and see where it lands, they seem pretty desperate.

Haven't RTFT but a house is worth what a buyer is prepared to offer. Good luck!

''Itstoocoldoutthere · Today 14:05
As a first time buyer with a mortgage I would definitely refuse your offer. People offering a large percentage below asking are usually cash buyers so I doubt your offer will even be considered.''

The point is if a house has been overvalued and it needs complete modernisation no one is going to overpay in this market and people will make offers that take account the money that needs to be spent on the house.

If this house has ben on the market for 3 months it hardly sounds like there is a lot of demand and they can afford not to consider offers...

You are assuming that the asking price is reasonable and that there are alternative offers to come. That does not seem to be the case so far so the OP is perfectly entitled to offer what she thinks the house is worth in its current state.

I think many sellers need a serious reality check at the moment.

@Greenfairydust The main point being "if it is over-valued". I quite agree that if it is wildly over, then obviously offer less, but if you are offering at probate value, then that to me suggests it is not the case unless the valuer got it very wrong.

Sellers are encouraged by estate agents to believe their house is worth more than it is because estate agents see pound signs when it comes to commission. The more the house sells for the more they get. Stupid stupid system. Doesn’t exactly keep houses at affordable prices.