Low offer... thoughts?

[LikeASoulWithoutAMind]

We've had our house on the market for several months and have just been made a pretty low offer (10% under asking, which at this price is quite a lot of money!).

Trying not to out myself, but it's a lovely period house, 4/5 beds, loads of lovely features. Our location is considered very desirable, it's on a fantastic road and houses like this don't come up very often - there are lots of small cottages and then far fewer bigger properties. Schools very well regarded.

The bathrooms are tired but otherwise the house is presented in very good decorative order. Roof, boiler, wiring, plumbing not new but have all been checked and are fine with plenty of life left in them.

In our area at the moment though, the lower end of the market is moving OK, the upper end is very slow. Nothing in our bracket is selling. There just don't seem to be many families looking (or not at houses as big as ours anyway) We look competitively priced compared to other similar houses on rightmove.

Now we've had this low offer and I think they are just chancing their arm and hoping we'll panic. I know of other smaller houses that have gone for a similar (or slightly higher!) amount. We do have the option of renting for 6 months (we have someone ready to sign a rental agreement) and put back on the market in the Spring. We've already moved and are renting somewhere we're happy to live in for a while so there are no issues on that side.

The estate agent is obviously keen to conclude a deal, as they know we will otherwise take it off the market and rent it. That's clearly the best outcome for them but not necessarily for us!

I can't work out whether we'd be better off renting it out for now and trying again in Spring or whether this is all we are realistically going to get The rental income would be quite good but there is of course the hassle of managing that from a distance.

Aargh... where's my crystal ball when I need it?

choccy your ancedata is just that, you'd experience. However market data shows that historically houses sell on average for around 5% under asking price, with 10% not being unusual. The current market needs to correct as it is so imbalanced compared to average earnings but sellers have got used to rising prices and have come to assume that asking price= selling price. But that isn't how a healthy market works. A quick look at the market where I am (Southampton), shows that it is slowing, esp at the £400k-£600k bracket. Houses are hanging around for a long time esp if not reduced, selling prices are under asking prices, even on houses that have been reduced.

I'd hang on and play hard ball. It sound like they're taking the piss. Let them go elsewhere for a smaller house . If they want a big house they're going to have to pay for it.

It's a bad time of year to sell so very wise to hang on until the spring.

OP any progress with your sale? I'm in a very similar position, and really don't know what to do! I don't know whether the 2 low offers we've had are because it's a slow time of year, and people are chancing their arm, or whether it's an accurate reelection of where the market is heading and even in the spring the offers will be just as low. It's hard reconciling myself to the fact that several identical houses sold for 70k more than we are being offered just 6 months ago, but if that's how it is then I need to accept that adjustment. On the plus side, because we are buying in the same area we should be able to buy for less as well as sell.

It's really hard isn't it chapeau ? I can't tell either. It's a really small place too, which makes it even harder to tell.

Our buyer has refused to increase their offer but we have a second viewing this morning so fingers crossed they like it. Hoping we'll have this resolved by Monday.

We're we live, not London but very desirable suburb of a large city there isn't enough property on the market so anything new gets snapped up quickly. Even in our market 10% below asking price isn't considered too cheeky, 5% below is more common. If your property has been on the market for months and they don't increase their offer after the second viewing I'd take it. The second viewing will be make or break.

In a properly functioning market, selling at 5-10% below the asking price is normal. Historically that is what happened in the UK.

No, that is what used to happen in some parts of the UK. But definitely not in Scotland where the "offers over" system was the norm where property was not offered at fixed price. Bids would be in excess of the stated price, often 10% over, so the reverse of the situation down south.

Second viewing is actually a different viewer, sorry I should have made that clearer. They sound quite keen.

In the spring I wouldn't have accepted anything under asking price. Now I think 10% under is to be expected. The market is not what it was. We are going through the process at the moment and had no offers when our house was on at the price it was valued at back in May/June. We dropped it 50k (not quite 10%) and it was snapped up at that price. Where we are moving to, I'm seeing the same houses on the market for months on end. If you want to sell at the moment imho you have to accept offers or drop the price.

katiekaye I'm glad you posted that, Scotland is definitely different to rest of uk, and even within scotland there are huge regional variations. Our neighbours just sold for 17% over valuation and 20-25% still happens up here for the right properties.
The point is that it's hard to generalise too much with selling houses as the situation can be very different depending where you are.

OP hope your next viewers like your house and put in a better offer

Unless they've given it to you as their 'best and final' it's nothing more than an opener to negotiations.

Politely decline and walk away.

You can sit it out a while. If they really want it they'll up their offer.

Our experience is very similar to eurochick's - our (restored Georgian house) was only on a few weeks before we dropped £50k though - as we wanted to secure our onward purchase - we then accepted an asking price offer almost immediately as well as receiving two offers from other parties for slightly less than AP. This led us to believe it was over-priced to start with.......

Other houses are lingering on the market for months as the vendors are unrealistic in what they hope to achieve.

We wanted to move quickly and in dropping by around 10% we managed to secure a sale (and have still made a profit!) as well as getting approx 10% off our onward purchase by making a cheeky offer as it was sitting empty, the vendor having already bought a new house.

I would tell the agent what your bottom line is. Wouldn't wait until spring as the spring bounce no longer really exists.

Just wanted to say thanks again. We are still in negotiations but we have had a second offer! We're hopeful that we'll settle on about 7% below asking. Fingers crossed it will all be resolved today - can't believe how long it is taking!