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Original poster

Acceptable Offer Or Not?

41 replies

myron · 14/05/2011 22:54

We have just viewed a fab house today that we would seriously like to make an offer on. It's on at 575K and has been on the market for exactly one month. Apparently, they've had tons of viewings but only one offer which was under serious negotiation but then went nowhere. The owners want to downsize to a newbuild and are under pressure to exchange pronto from the developer (as always). We are in rented already so will have no chain. Now, considering how much interest they have had - even though it hasn't seemed to translate into any acceptable proceedable offers, would you accept £499K from a no chain buyer? Secondly, could I tempt them with a slightly lower initial offer than that as a cash buyer? It's not in London and no real comparables since each house on that road is totally different. The most recent sale further down the road was in Dec 2010 for £490K but we can't tell whether that house is a comparable or not. Sorry, I'm not posting any links cos we really like the house!

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SybilBeddows · 19/05/2011 11:53

'The problem is that the housing market has split into a set of micromarkets.'

oh, that is so true Siasl.
the very expensive houses in London you describe will be selling to an international market of high-earners who are still doing very well, so those prices will be high and even rising.
There aren't many FTBs so FTB houses aren't selling; in the middle, downsizing retirees are basically swapping with people who are upgrading, but those people are held back by finance.

and there are so many local differences depending on employment situations in different areas.

all these overall figures about the national market going up or down 1% or whatever don't really tell you anything because there is such local and price bracket variation.

Original poster

myron · 25/05/2011 11:35

Update - well, they have reduced their price now to 550 probably due to the fact that they have about 5 other houses down the road (more expensive than them) who have reduced their prices too by 5 - 10 % in the last week. We offered 495 (10% under) in the end which was rejected. We then offered 500 for obvious reasons which they again turned down, restating that they wanted 550 - wtf! So, we're very reluctant to go higher....without even a counter offer. We have no competition, there are no other offers and we are a proceedable no chain buyer and they need to exchange on a new build pronto.

So, what shall we submit as our last and final offer before walking away bearing in mind that we will now be exceeding the actual sold ceiling prices for the road in the last 2 yrs? We don't think we should exceed 515 - there are plenty of other nice houses on the market after all!

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SybilBeddows · 25/05/2011 11:50

well, if it was me making that decision it would depend on how much I liked the house, how quickly I wanted to move and how much difference to my life that extra 15k would make.

but I really think there is a good chance that 1. they will not accept 15 anyway, and 2. they will either come down later when they have stewed a bit more, or you will find something better at a better price.

PfftTheMagicDragon · 25/05/2011 11:54

I wouldn't submit anything.

BAsed on what you have said about other local houses, it sounds like it is overpriced.

You have made two offers. Assuming that you have others to look at, I would tell the agent that you are looking at x,y and z in the local area, and are not prepared to go any higher.

If it's overpriced, it won't sell. Give them a few weeks and see if they come back to you. Don't offer any more.

MrsCampbellBlack · 25/05/2011 12:02

We got a bigger reduction than that - 20% under asking price. Took 2 months for offer to be accepted but the vendor wanted to move and we were the only people cheeky enough to make an offer.

Good luck.

dolceebanana · 26/05/2011 14:22

myron - we are in a similar position. Have offered 8% below asking price on a house that has been on the market for 12 weeks now with no other offers. We are chain free: they have declined offer, saying they want a deal but won't accept our offer. We are not prepaed to pay any more because we feel the house was somewhat overpriced in the first place. I truly wouldn't offer any more...continue looking at other houses because in this market you certainly don't want to be paying over the odds for anything. Hang in there.

Original poster

myron · 26/05/2011 15:24

Well, this morning - acting against the majority of MN advice, we offered 6% below asking price ..... and they DECLINED it. Well, we've decided to walk away and not to leave our offer on the table - apparently, they want closer to the asking price - somehow, they're not acting as if they want to sell!

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SybilBeddows · 26/05/2011 15:57

LOL, I thought they might.

Well they might get an offer nearer asking price. Or they might not. You, on the other hand will almost certainly find a better bargain than that

SybilBeddows · 26/05/2011 16:02

what I reckon is:

-a year ago virtually no-one would have accepted a low offer
-now a small minority of people would: you can make those offers without being laughed at, but most of the time they won't accept
-if you make quite a few you might get lucky

Original poster

myron · 26/05/2011 16:41

I suspect that they haven't been on the market long enough (6 weeks) but tbh, not even making a small counter offer peeved us off considering they have no other offers. If it was that much of a bargain, it would have already sold by now.

We have sold recently and had offers ranging from 10% under to 2% under - all from chain buyers and all within 3 weeks so we could compare them more or less simultaneously. We accepted the 3rd highest offer last autumn because it was the shortest chain. Therefore, a 6% below asking offer from a no chain buyer is pretty generous imo and certainly not a low offer (but obviously is from their POV).

I don't believe that we are in the minority to consider/accept 5 - 10% off the asking price especially in a falling market outside of London.

Oh well, the market is on our side - there are plenty of houses to view and we are in no particular rush.

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SybilBeddows · 26/05/2011 17:11

I wasn't counting 5-10% off as a low offer, especially for a cash buyer, in the current state of the market! 5-10% off seems pretty normal now.
sorry, I should have been clear what kind of low offer I was talking about!

tyler80 · 26/05/2011 17:21

7% under asking is average for sold prices now isn't it?

So 6% seems perfectly reasonable to me

Sometimes all you can do is walk away. We made an initial offer on a house then increased it to 7% under asking(a house that has been on the market 18 months, gone sold subject to contract 3 times but never completed). After two offers they didn't come back with a counter offer so we just walked away. They said they were willing to negotiate but it seemed there idea of negotiation was to let us keep offering higher prices and they'd keep saying no

dolceebanana · 03/06/2011 14:27

Tyler - we've had a similar experience...We've just had a final, failry respectable, ( I think), 8% less than property price rejected (house has had no other offers and been on market since Feb)...and we are not offering any more!!! The vendors also stated they wanted to do a deal and were flexible, but obviously not that flexible. Have left on the table for when they wish to come grovelling back and we have found an alternative, far nicer house

Karbea · 03/06/2011 14:43

We are waiting to hear back on a place that has been on the market since Aug last year, it had had one crazy offer. they've never reduced the price as the agent said each time he thinks of suggesting it another place comes on in the same road for a lot more. It's on for £950, we offered £900, they had a family vote and it was 1 to 4 against, so we've gone back today with £915 which the agent says was a reasonable increase and he will advise them such... so we wait now for their family vote over the weekend... but we walk away after that. We exchange on our place next week and will be moving into the in-laws, so we too are effectively chain free, and she wants to move asap into her elderly parents home to care for them...

tyler80 · 03/06/2011 14:47

You just have to keep telling yourself it'll all work out in the end. We've now had a 12% under asking price offer accepted on a property that we prefer. Just got to get through the nail biting bit to exchange now.

Original poster

myron · 07/06/2011 18:03

Well, having spent Whitsun half term on holiday, we've decided to continue house hunting. The last 2 houses that we have viewed doesn't come close so we've decided to give it a last shot and put in a final offer of 5% off the asking price. They still have no other offers and have now been on the market for 2 months. I'm tempted to cave but DH is standing firm...so I'm preparing myself to be disappointed once again.

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