Mortgage Lowball Offers

[RH1234]

Evening all,

We’re looking at a property to buy and possibly found one, but it needs some work. The house hadn’t sold In a long while.

Has anyone on here offered a lowball offer before and what’s your experience.

We have the affordability for the asking price, but genuinely don’t think it’s worth it.

Thanks in advance

Yes we did, in the height of the boom offered 65k less thank the asking price (approx 10%) didn't get it initially but they came back to us following the initial sale falling through. We're currently living the dream trying to renovate with little funds but I wouldn't change it.

Thank you, we’re fortunate enough I can afford the mortgage it’s priced at now, but it’s been neglected massively (and I reckon overvalued)
So I’m tempted to lowball 20-25% and I know it’s down to the seller, but just seeing experience with this.

Thanks for your reply

I think 20-25% is potentially to low a figure and you are at risk of annoying the seller. Has it been reduced at all? Are the vendors looking to buy another property with the sale? Ultimately if you are going to offer that much less be prepared to walk away or have the seller not engage in any further negotiations

20-25% is a lot. I wouldn't reduce my house by 1/4. They will presumably need the money for their onward move. If you're not that bothered then go ahead but I think it would put me off selling to you even if you subsequently upped your offer

“If your first offer doesn’t embarrass you it’s too high”

Make the offer, and when they reject just say “We’ll it’s there on the table if they start to feel differently”

@RH1234

i think you'd get more responses if you asked MN to change your title to reflect your actual question, it's a low ball offer on a house you're interested in,nothing to do with a mortgage (I got all excited you'd be offered a really low mortgage rate!!)

How much research of SOLD prices (not asking) have you done. I'd work out what I genuinely thought it was worth (to me) then offer 5% below that to have a little wriggle room for negotiation.

IMO the % below the asking price is irrelevant, a house is only worth what someone is prepared to pay for it

If someone was going to accept 25% below asking then they would simply sell to “we buy any house’ type companies and not have an EA