Initial offer - allowing room for negotiation

[tyler80]

Viewed a house around a month ago. It had just come on the market and it ticked most of the boxes apart from price. Not over our budget but too much for what it is when looking at similar houses on the market and those that have sold nearby.

Now it's been on the market a bit longer we're thinking of putting an offer in but our max is still 13% under asking.

Do you think it's better to just put the one offer in and leave no room for negotiation or go in with an initial offer but that's 17% under asking?

That's a tricky decision. If you think the house is worth the maximum you can pay I would go in with a one time offer at the maximum you can afford and make it very clear that it will not be increased under any circumstances. If they turn it down you can always leave it on the table.

if it's negotiable then I would go in with a lower offer and negotiate upwards.

it's worth noting though that the average house now is selling at 7% below asking.

See... I said it was a tricky decision

I have seen a house I like and am thinking of offering 15% below. Not sure it will be accepted though but atm I think it all depends on your situation cash buyers ready to go are priceless as mortgages are still a bit tricky

The maximum offer is the max we would pay for that particular house rather than our max budget if that makes any difference. We are also first time buyers with an aip in place. The property is currently unoccupied and therefore chain free.

I'm 95% sure the property is 10,000 overpriced at minimum based on other sold prices/condition etc. but it's hard to be objective when you like somewhere

If it were me, I'd start to negotiate at your lower figure and have you final figure in mind as top level, if you need to go that far. If you go in with your first lower figure and then reluctantly move up a little (if negotiation is possible) then I feel this would be better psychlogically for the vendor and agent to feel they have had an input?

You have some local knowledge and are money savvy/serious prospective purchaser so be business-like and polite and see what happens.
They can only say no.

speeling rubis toady, sorry

You can also gently substantiate your initial offer by citing precedented sales locally, how much you feel you will need to spend on the house to bring it up to standard and how this all fits in with your budget, procedability, name of solicitor etc - as much as you can. Shows you've considered everything very carefully, are serious, and not likely to simply be chancing your arm.
Deals very much need solidity, and if you approach this in a professional way, the agent will respond similarly.

Think we're going to go with an initial offer of 15% under asking which then gives us a small amount of wiggle room, to move up.

Just worried it'll be viewed as a taking the piss offer and it's actually carefully researched.

Well then I guess you won't be surprised if it's a 'no'. Leave it on the table a couple of weeks and let them think about it.

Just need to decide on the timing now, it'll have been on the market four weeks on Thursday.

Tyler - if you are not embarrassed by your offer, you are offering too much.