House on market for £535k, offer of £495k. Would you accept?

[AnnieMated1]

Our house has been on the market for about 6 weeks and straightaway we had two full asking price offers of £535k.

They have both since been withdrawn because one couple couldn't get their mortgage approved, the other because she cannot sell her own house at a high enough price to be able to afford ours.

Last week we received an offer of £475k, which was increased a day later to £485k. They have come back today with £495k.

The agent reckons they can squeeze them to around £499k ie just under the stamp duty threshold, but that they will not budge beyond this. I get that - I would do the same!

But, but, but - we have no real clue whether to accept it. We haven't found anywhere, and in fact will probably got into rented for a short time to make sure we don't rush into anything.

The issue is that £40k below asking seems low to me - thinking of it in terms of real cold hard cash that we have available to put towards our next home - but is it? It works out at 92% of the asking price I think - is that low? Or about what you'd expect?

We are in Surrey - easy commuting distance to London - and the agent reckons the MMR process is already cooling house buying here. My fear is that this then is the top of the market and we wouldn't get this price again in a year or so when we really do need to move for secondary schools.

Any thoughts? Would you accept?

I think anything within 10% you should take, but it really depends on the market in your area, and presumably if you're selling you;ve been looking at asking then actual sold prices in your area?

I, too, think pricing at £535 is silly when the SDB is £500k.

I wouldn't go lower. Prices are crazy in that area - everyone I know who has bought recently in SW London/Surrey border has had to go to sealed bids. If you're in no rush, hang on!

I'd go back & say £500k & it won't come off the market until survey is booked.

depends on the house doesn't, we are in surrey and some houses sell in a weekend at offers over, because they are solid period houses, others are frankly a bit ropey and take a while to sell. The fact that they've not had other offers suggests to me to take £500k.

Ask your estate agent how many properties they've sold in the 500k - 550k bracket in the last 2 months and you will get a feel for if the stamp duty threshold is an issue.
I'd be tempted to accept & negotiate hard on whatever you buy.

cant you just offer to cover the extra stamp duty?

Accept.

A house is not worth the amount the estate agent values it at, it's worth what someone else is prepared to pay for it. You have not had two offers, you have had two people who liked your house but then neither were in a position to move forward, so not real offers at all.

It's a silly price tbh. If I saw any property just over a stamp duty threshold I would automatically assume they want the threshold limit and would never offer over the threshold and endure the % duty hike. I'd always feel disgruntled. I'd agree to 499,999.

I think "offers" from people who clearly were not in a position to make these offers, should be discounted. You appear to have one genuine offer. Try and get them to £499,999 and accept. Bird in the hand.......

Wow, thanks all for the speedy responses and helpful advice. We have mulled over everything and we think we are going to see if we can push them up to the £500k limit, just under the 4% rate...then negotiate hard on our next buy. If the market is cooling, we're hopeful this (might) just work in our favour. I'll let you know if they accept the £500k!

Good decision!

Great decision. The timing of this might just work out perfectly for you - you'll be in a strong position to negotiate on what you want to buy.