How low should you go with first offer on a property you really like but is near top of budget?

[Lottapianos]

I know, how long is a piece of string?! DP and I are brand new to this game. We just viewed a house which we like but is on for offers over £245,000. Our maximum budget is £250,000. Estate agent seemed very relaxed about the £245,000 number and said that seller wants to make sure he gets the right buyer, someone with their finances all in place, which we have, and that there would be room for movement on the figure. We are not in a chain and neither is the seller.

What would you offer? Would £235,000 be way too low? All advice gratefully received

It's a bit contradictory to say offers over £245,000 and then say there is room for movement on that figure. I think £235,000 is a great first offer. They may just come back and say they will take £245,000 but that's still under budget for you.

OK thanks BoysRule, I was thinking £235,000 might be a bit ridiculous! May even risk a bit lower?

Lotta it might help to think in terms of percentages above/below, rather than actual figures.
If you were to offer 235k, then that's only around 4% under asking. Have a look at the kinds of percentage differential (i.e. between asking and actual paid) that houses in your area are currently achieving and maybe go in based on that?

Hope you get the house you want at the right price.

We went in at 230 for our house which was on for 255. Our top whack was also 250. We got it for 245. What's the worst that can happen? They say no, so you offer higher. When we went in at 245 we made it clear it was our final offer (it wasn't, we WANTED that house) but didn't want to keep getting bumped up. We were happy with what we paid in the end. It's very unlikely the vendor will be so pissed off with a low offer that they'll refuse to sell to you later, that would be totally stupid

That being said it could happen

Depends on the market in your area. "Offers over" doesn't make £245k the asking price. It invites a bidding war, if the market in your area will sustain one.

As you're in a good position (chain free) I'd go with £235k to start but be prepared to work up to £245k (maybe with £240k in between). As another poster said, if you trade at £245k you've still had a result.

Good luck!

From what the estate agent said, they would take less than £245k so I would offer £235 too.
I really don't understand the "offers over " concept in the English system (it makes more sense in Scotland) unless you know the house is going to be so popular that the seller will have the privilege to chose between lots of offers!

Thanks for advice and good wishes! Going to offer 235 tomorrow. Would be chuffed to get it for 240.

how did it go?

depends on supply and demand in an area, and how much you want the house. DD in process of buying house, she found one she liked, with many features she never thought she would be afford, and research suggested it was a fair price, so she offered full asking price,. Houses go so quickly round here, and do not often come up in this area, so for the sake of a few thousand pounds, she felt it was a calculated decision worth taking.

We offered £235,000, it got rejected. We offered £238,000 - they will get back to us tomorrow. Really dont want to go above £240,00.

The plot thickens though - we have seen another house online, much cheaper and looks nice. Viewing on Saturday - will see how it goes!

Well, fingers' crossed on both counts!

They have accepted 240500 so we're going for it. Nervous but excited! Thanks so much for good wishes.

Different price range, but our current house was on at offers over £150,000, we offered £148,000 as a first offer and they accepted. Always wondered if we could have gone in a bit lower and still got the house so I would say that your offer sounds perfectly reasonable. I don't think its going to offend anyone so worst case scenario is they ask for the higher figure, but they maybe willing to accept or at least meet you half way. Definitely worth a try!

Oh too late, should read everything before replying! Congratulations and hope it all goes through smoothly for you!

Thanks Sad Pander

Congrats pianos, that's awesome

Congratulations! Happy Friday!