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Original poster

Got an offer - please wade in with advice...

32 replies

Chunkychicken · 06/03/2012 15:31

Received an offer of 10% below the top end of our asking price & seriously considering taking it. However, taking it means we will have to borrow some considerable cash from family to get a house a half-decent size in the right area. We have been on the market since the summer with 3 agents (these ones are def getting more people through the door) and the offer is from an investor.
We like a house where the vendor wants the top end of a range but we can just about scrap enough together to offer a mid-point. He's been on the market for just a week or two less than us with the same agent & dropped the price twice.

What would you do?

OP posts:

Hairytoes · 06/03/2012 15:46

I'd write your post again!
Do you mean that you have received an offer 10% below the price you are prepared to accept, Or 10% below the asking price?
What does The top end of a range mean? He wants the full asking price?
What is a midpoint?
You can go in with any offer you want, the agent has to put it forward. You never know, you might get a pleasant surprise if they have been on that long too. Who is to say he wouldn't seriously consider taking his offer like you are.

Original poster

Chunkychicken · 06/03/2012 15:52

We're on at 130-150k so offer is 135k. This is about 5k less than we ideally need to move and about 13k less than we hoped for.
The other house is on at 190-220, wanting 220.

I guess they don't do price ranges on sales in your area then hairytoes...

OP posts:

Hairytoes · 06/03/2012 16:05

No, I have never heard of that!
So does it mean that the agent wouldn't put an offer in that was less than 220 then?

BerthaTheBogBurglar · 06/03/2012 16:12

How strange! Why do you have your house on the market for 130-150 if you can't afford to accept 130?

And why does anyone offer more than 130 if that is the range you've advertised? And you were hoping for 148? Really?

Where are you? Around here if you said 130-150 people would offer 120 and you'd bite their hand off in your eagerness to accept ...

VivaLeBeaver · 06/03/2012 16:22

I haven't either. I've seen "offers over".

You'd have thought if its a range that that means people will accept the bottom end of the range. Why have a range and then not accept an offer in that range?

Original poster

Chunkychicken · 06/03/2012 16:25

Clearly I've misunderstood my audience. I ask for advice from non-biased third parties & all I get is criticism for the actions of the vast majority of estate agents in this area (NW Kent BTW).

FWIW, We started out at 150k & then dropped our price to oieo145k & then have had to drop our price from 130-160 to the 150 mark with this last agent to get this offer. Unfortunately the houses around a decent school haven't dropped that much in the interim. Thankfully, all the time we didn't move we've been saving up but not enough to cover the massive gap between the offer & the 'next rung up'.

Not sure why I've wasted my breathe/effort with this explanation really, if all I'm going to get is slagged off...

Thank you BOTH so much for your considered opinions.

OP posts:

ApuskiMcClusky · 06/03/2012 16:29

I agree that the range thing is odd.

The fact that both houses are on with the same agent is great news though - the agent will be really keen to help you get an offer accepted as two house sales are dependent on it. Make an offer that you can afford on the other house, ignore what you think he expects. You could make the offer before accepting the offer on your place.

kitsmummy · 06/03/2012 16:31

How rude! FWIW I too can't see for the life of me why you'd advertise at a price that you wouldn't accept

Hairytoes · 06/03/2012 16:38

So you can go in with an offer of 198 then, as it is in England. You take a 10% drop, and so does the vendor.
I thought you were in the Outer Hebrides or somewhere, and it wasn't the done thing.
Kent eh?
Well well.

Fizzylemonade · 06/03/2012 16:39

I think the issue is that most of us have never come across advertising a price of a house as between two figures because most of us would offer at the bottom end.

If the vendor has been on the market for 9 months ish and they have dropped their price and no-one has yet bought it then go in lower than the 220 and see where the land lies. Houses are all about what someone will pay for them.

Most of the time it is about price and position, so are you in a chain or are you chain free below your buyer? The agent has both properties on their books so it will be in their interest to get them both sold at the same time.

Would borrowing money from your family be a big deal? Would they lord it over you? Only you know the answer to that.

ForeverProcrastinating · 06/03/2012 16:39

Once you have accepted an offer from a proceedable buyer, you are in the strongest position to negotiate yourselves. So, go in as low as you dare, I would say, the worst that can happen is that the vendor says no. Proceedable buyers (i.e. you, hopefully) should be treated with respect, vendors REALLY NEED you in the current climate, so be bold, you have nothing to lose. Make sure your agent checks out your investors position thoroughly, mortgages are getting tighter to obtain (be nice if he/she was a cash buyer). Good luck.

noddyholder · 06/03/2012 16:39

There is a lot of that here (sussex) in a booming market it works because it gets a broad spectrum of buyers through the door. ATM however it is pointless as no one will offer more than the bottom and indeed sometimes less!

VivaLeBeaver · 06/03/2012 16:52

How rude are you!

I don't see anyone slagging you off. The only person who appears to be "slagging" is you.

If you have an unusual local system and then realise that its alien to others why don't you nicely explain how the system works and then we might be able to help more.

On the other hand, don't bother 'cos I can't be arsed anymore. Do you know what - I couldn't give a fuck if you sell your house or not.

noddyholder · 06/03/2012 16:57

Mn you always get the answer you deserve eventually

Rhubarbgarden · 06/03/2012 16:59

We've been looking in Kent and Sussex and to be honest when I've seen these 'ranges' I don't even register the upper figure. I would be starting negotiations at 10% below the lowest figure. If a property had been on the market since last summer, I certainly wouldn't be raising my offer higher than the lowest figure unless it was absolutely my dream house and was already substantially under my budget.

I think you should accept the offer you have received, and put in an offer of what you can afford on the house you would like to buy. If they have already dropped the price twice it's a sign that they are getting pretty keen to sell. As someone else said, the fact that it's on with the same agents is a big help - they will no doubt try to persuade the vendors to accept. Good luck.

Rhubarbgarden · 06/03/2012 17:02

at the way this thread has gone while I was laboriously typing out my post!

Northernlurker · 06/03/2012 17:03

Wow - I came on to this thread feeling full of the joys of offering house advice but not any more. OP - whether you sell your house or not please practice your internet voice a bit. Here is a smidgeon of advice for you though - if you can't afford the next rung up the ladder without sponging off your family you can't afford to move at all!

shinybaubles · 06/03/2012 17:06

Not entirely relevant to the post but I am looking for a house near Canterbury and have noticed this price in a range thing on many properties, and thought it was something that had evolved while we have been living overseas and it has also left me entirely confused as I will only offer near the lower end of the range, but then maybe I am just cheap. I would also assume that the vendor would then accept offers at the lower range.

lucidlady · 06/03/2012 17:08

OP I would accept the offer you've got - I'm assuming the £5k is the bare minimum you need to fund the next purchase? I'd also then go in with a first offer at the lower end of your vendor's range and negotiate from there. What do you know about your buyers? Are they in a chain?

ChickensHaveNoLips · 06/03/2012 20:12

I feel that Viva covers all points eloquently

only4tonight · 06/03/2012 20:24

I agree with your reaction being rude. Being in a similar position (and area) in my opinion price ranges are just a way for estate agents to get you to drop the price without too much of a row.

If offer is over your minimum bite their hand off as you won't get another like it.

RCheshire · 06/03/2012 20:35

Completely agree with only4tonight.

If the range is 130-150k the agent thinks they can get 120-135k and knows you'd flip if they proposed listing at 135k. After all what does the top end of a range mean - that no-one is allowed to offer over 150k???

It may have meant something during the boom years when you had three people offering in the same week, but nowadays most people looking at a range will be expecting to pay 5-15% below the bottom end.

ParkView · 09/03/2012 00:23

Gosh- range thing is very odd. As a buyer, there's no way I'd offer near the top of a range quoted like that! If it says £130-150, I'd be reading it as £130, and offering you at least 10% below that if you've been on since the summer!

I don't really understand people that put 'offers over' ... surely people just offer x + £1?

ellangirl · 09/03/2012 09:29

parkview In Scotland offers over works because it is a closed bid system, that is everyone puts in a 'secret' offer then all the envelopes are opened and the highest bid 'wins'. In good times it meant that the sale prices went way over the offers over price as demand was higher.

Whorulestheroost · 09/03/2012 21:39

I think you have wasted your breathe op, very rude indeed!

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