Offering 25-30k below asking price

[BlueBlackGreenYellow]

I'm a first time buyer currently in the process of looking at properties and have seen one that I like. A 2 bed semi in a nice area, close to the motorway and has lots of potential.

It was first listed in April and then reduced in May by 10k but still hasn't sold. I've done some research and a house on the same street came on the market 3 weeks ago for the same price and has already sold, probably due to the fact that it was more modern and had bigger rooms. The one I've seen needs a new kitchen and bathroom and the rooms are smaller, plus it looks like it needs new flooring and painting. It's definitely livable but needs updating basically.

I'm in a good position - no chain with a mortgage in principle, deposit in place etc, but I'm worrying about not having any savings left over for repairs or just a rainy day if I throw it all at the house purchase. I'm single and don't have a partner to help with money. The house is currently on for £170,000 but my budget will only allow me up to £150,000 and I'd be left with nothing afterwards. Ideally I'd like to have at least 10-15k left over but that would mean offering £140,000 on this house, which seems like a massive drop.

I don't want the vendor and estate agent to think I'm a piss taker, but equally the market has changed and the house needs work. The house across the street was up for the same price but given the current market I'd be surprised if it actually sold at that price. Taking into account similar properties, the work needed, and the current market/interest rates etc, would that be a ridiculous offer?

This is just an idea and I haven't actually spoken to the estate agents as of yet. It might be worth giving them a call to get some more information, but I'd be interested to hear your thoughts first.

Just to add, it is a popular area and houses usually sell pretty quickly.

You can only ask? They can only say no. The estate agent has to submit your offer to them legally

stress the fact it’s a no chain quick sale.

good luck!

Just do it & tell us what happens next

Do it. It may turn out the seller is the last link in a chain and happy to get an offer. Nothing to lose.

just a bit confused how you’ll have a £10k savings buffer if you were to get the price dropped by £10k - I assume you’ve a big enough deposit that you can keep back £10k of your savings and still have enough for the deposit?

From what you’ve said, though, it doesn’t sound like it’d be a ridiculous offer.

I personally think offering 140k for a house on for 170k is too low. I wouldn’t accept that if it was my house on the market. In the current climate, 4 months isn’t too long, they may well get an offer closer to asking if they hold out for longer. Unless they are desperate.

It’s a low offer, in the 5 house purchases and sales I have made I tend to find that anything more than 10% off asking is low.

But you can but try. Don’t go in tentatively or ask the EA if they might accept xxxx, be firm and positive: “love the house, it needs loads doing, my offer is £140,000, I have no chain, I have my mortgage AIP and deposit all ready and would be keen to get on with a swift purchase”

I wouldn’t accept it either, but I might try negotiating you up to £150k. So decide what your true highest price is. But in truth it does sound as if it could be a bit of a project.

We bought our house for £30k less than the asking price (so 10% less than the asking price at the time).

We had researched sold prices etc so knew we were being reasonable. We initially offered £40k under and then negotiated.

Worth a try in the right circumstances!

do it!

As someone once said, "If you're not embarrassed by what you're offering, it's too high", so in the chaos of today's market, with a place that's stuck for a while I'd definitely try it (and have)

They can only say no

There are a number of things to consider here. Ultimately anything is only worth what someone is prepared to pay. If you are prepared to pay £140k for the house, then to you, that's what it is worth and you should offer that sum. I would make a point of highlighting your circumstances, chain free etc. I have done this and bought a house with a similar reduction although a long time ago.

That said, you run the risk that this particular house is worth more to somebody else and then you lose out on buying it, so it is worth thinking about whether you want that to happen.

It won't hurt to ask the question.

4 months is ages and suggests the price is too high for a house of that type in the area where the OP is looking. Meaning that her proposed offer could well be reasonable.

I sold a house that was on the market for 12 months for 6k under asking. I wasn’t in a hurry though. It really will depend on whether they are desperate enough to sell.

Seems like quite a drop to me OP, particularly with a house that low price in the first place, but I guess it depends on the area to some extent. Also, has the vendor already moved out? If so, then perhaps they might be more likely to accept. However, as others have said, you've nothing to lose and a lot to gain if they do accept the price you're prepared to pay. The only thing I'd be wary of though, is someone else coming along and gazumping you, in which case you may have already spent money on survey, solicitor's fees etc., which you won't get back.

hey OP, how did it go in the end? :)