Is this a cheeky offer??

[suzilywoozily]

House went on the market for £167,000 today. Prior to details being written up the agent arranged 2 viewings (they saw draft particulars and knew the price). The first couple came back for 4 viewings on consecutive days, Monday, Tuesday, Wednesday, Thursday which was a PITA, but fair enough as it is a big decision (and I took this to be a positive as at least they seemed keen!) They then made an offer of £143,000. I did expect to start a little on the low side and work up, but I have to say I was a bit surprised at this.

The house hasn't been marketed at all yet and the agent showed me plenty of comparable properties they had sold at £160,000-£170,000, so I don't think the price is massively out. (Although haven't had feedback from the 2nd couple to see what they think yet) Is this a cheeky offer or do you think its a fairly standard starting point?

Whilst we're all suggesting it's a buyer's market on this thread, don't assume that's the case across all the country.

There are lots of houses still successfully selling at record prices, and micro-market factors such as school league tables and even new bus routes can change prices substantially.

Speed is of the essence when buying and selling. Every month of your life and every scrap of stress you suffer has a value.

Hi Wellies, sorry wasn't trying to insinuate that you personally don't use your brain! Clearly you do your research. Really I am just having a moan, people can offer whatever they feel is appropriate and a seller can always turn it down if they disagree - I just feel a bit sore I think as I had gone to some effort to price the house realistically and a lot of effort to get it ready for all the viewings they wanted. Clearly this is something I will have to get used to!

I agree about agents overpricing houses - I have used your methods of looking at what the house was brought for, change in market and asking what work has been done, and have been very confused when this all adds upto about 30k less than the house's asking price! When getting our own house valued for sale we also had some very flattering (but crazy) valuations.

No worries Suzie I didn't think you were insinuating anything :)

I think today's EAs - many of whom have only known the bubble are struggling with the new conditions and are relying on flattery to gain instructions, and then, as you say are beating the price down later by attrition. It sounds like you have priced realistically (you've compared with sold prices not just those sitting on the market for months and years?) - as a sense check ask your agent what price it would need to be to sell quickly and compare the two.

25k under is very low and cheeky. Expect about 20k more.

Thanks for your opinions everyone. Wellies - that is good advice about asking the agent the price for it to sell quickly, would be interesting to see the difference between that and my asking price so I might just do that. Yes we have compared with sold prices rather than asking prices - mostly properties sold by the agent we are using.
Rudolph - Love the name! Glad I am not alone in thinking its a bit cheeky! Fingers crossed for another 20k, though I suspect not from these people.
My SIL is an estate agent (not in our area) and she said its a bit low but she certainly didn't seemed shocked by it as a starting offer - suppose it all depends on how your house is priced in the first place.

It might be a bit cheeky but as a buyer I would never go in with my maximum and as a seller would rarely accept a first offer. Our house was on at £550 got it for £500 but I think deep down they knew they might not get over stamp duty. We offered £475 at first.

That's the thing with high house prices - you need to think in % terms rather than in pounds and pence as even a small percentage reduction sounds like a fortune. In a falling market - offering 15% under is not unusual and I'd gird your loins to hear 20+% under offers too.

Everyone wants to get the best deal they can in this current climate, and there are a lot of folks who overstretched themselves during the boom who are currently in a lot of trouble and are bailing in a hurry to avoid bankruptcy - so you can't blame your viewer - they were just testing to see how desperate you are to move. Desperate sellers are currently who is setting the price. In an area we are looking at there is a repo that is £50k (33%) cheaper than an identical house - there is no way we would consider the house that isn't the repo. We'd be mad to consider it. The other house now looks grossly overpriced and is getting no interest. I imagine the seller is pretty pissed off with the repo!

In your case - I guess they will only want to haggle if they truly love your place. They might be those sort of buyers who use their heads rather than their hearts for whom price is everything, in which case I doubt you will agree. But hey - they are your first viewers so don't panic. If a month goes by and you've not had any more offers - then rethink the price as 1605 says - the first month is pretty indicative.

Hmmm..not sure I agree with the '15 % below AP'. I've been looking (in a 'bubbly' bit of SE London) for over a year: everything I've been attracted by has been snapped up for AP, or even higher (and some of it is well minging, would need serious overhaul to make it modern and lovely. Thinking of a probate sale that was really foul, on the market for £700k, went for £790k). Our budget is around £750K - I promise you, more dross than gold at that level - and I have been in houses on open days with 30 other buyers, offers have to be in 48 hours later, and the nice places always, always go, for AP, bish-bash-bosh!. Friend of mine sold within a week, at AP. We've sold for 97% of AP, and have paid AP for a house which is beautiful and perfectly maintained. And I'm willing to bet that prices keep rising next year, because the supply of decent family houses is just pitiful at the moment.