What is a "sensible" offer?

[Tasmania]

Let's say the asking price for houses being looked at is 400k / 395k.

What are "sensible" offers the vendors would be willing to accept in the current market within the SE?

How long is a piece of string....?

• It depends where in the South East - some places have more buoyant market than others
• How long has it been on the market? On the whole, places that have been for sale longer more likely to accept lower offers
• What do you think it is worth....compared to other actual sold prices (not asking prices) recently for comparable properties?

The current owners only bought the house recently, and it has been on the market a couple of months. They bought it for less than the asking price, but made a few improvements. The last houses sold on that street was last year. And the asking price is about 40k more than the actual prices houses sold then. Presumably they want more due to the 'improvements', but not sure a new kitchen is worth that much!

We like it, but the maximum (as in really the maximum!) we would pay for it is about 4% below the asking price (a 15k discount to asking price). This would still be more than what they paid for it (not sure what they spent on the 'improvements'). If we offered, and this was rejected, we would walk away from it, as there are other houses we would be interested with an asking price less than our max. budget.

Is this a "sensible" offer? What would be considered "cheeky"?!? We are FTBs, so have no clue. Any help would be appreciated.

I would definitely say that was a reasonable to good offer.
If that we're my house I'd probably say yes, especially as you're ftb's.

Thanks. We'll see if we will be successful...

I'd be concerned as to why they were selling so quickly?

15k off that price is more than reasonable... I'd say too high as a first offer.

Id be looking at how much the paid and how much houses in the area were selling for last year... And going in no more than 10k over that as a first offer. In fact, I'd also be tempted to make that not far off my final offer.

I would definitely say that is a reasonable offer although as others have said it depends on your area. Have a look on rightmove as under the house prices tab at the top you can click on price comparison and the bottom half of the screen shows properties that have recently been taken off the market and the price they were marketed at. These also show the last sold price. If you click on the tab 'show me more properties' at the bottom you should be able to see some properties that have the recently sold price. This should allow you to see the difference between the asking and sold prices so you can see how much lower houses are sold in your area.

Personally I would decide what price I was happy to pay for the house based on any compromises you would might have to make (e.g. garden not as big or not in preferred school catchment) and how much you like the property against those compromises. Go in at that price as a once and final offer and be prepared to walk away if they say no. That way you are not messing around with back and forth offers for days on end and potentially missing out on other properties.

Thanks mylittlemonkey - just did the rightmove thing. The current owners did pay £15k less on the property relative to asking price as well - so that was more of a discount.

All houses around that price range seemed to have been bought at the kind of discount we're thinking of...

Don't start with your maximum. Buying/selling houses has become a bit of a game imo, and pretty much every vendor in the world will expect the game to go something like you offer, they refuse, you raise, they accept or tell you what they will accept.

At that price, and in those circumstances, it seems they are unlikely to accept much below their asking price. They may be deluded, and they may be in for a long wait before they realise they're over-priced... Or the market may healthy in your area, and it'll sell quickly. Unfortunately, you can't tell which. If I were you, I'd offer £360-370k and rise to your maximum in one or two steps.

Depends on the area and condition of the actual house. The area I am looking to buy - Zoopla shows that houses sold around 5k below asking price or at asking price. Superb condition houses sometimes sell above asking price, meaning there was a bidding war.
So I am likely to offer 5k below asking price if anything good comes up.

3years ago we made an offer of £360k on a house which was on the market at £450 k, it got refused but we settled at£400 k, so you just never know. , go in low!!