How much under the asking price??

[Rainsbow]

Want to put an offer in on a 580k house. Online says 5-10% below asking price as starting offer but that would be as low as 522k. That's a pisstake surely??

I think on a house that size 10% is a big difference. Depends on long house has been on the market I guess. If it's been sitting there a while a cheeky low first offer won't hurt?

How long has it been on and is there anything similar which had sold in the last year? Is that asking price typical in the area or is it a more expensive house?

I would offer what you think it is worth and are willing to pay. It just makes things easier for everyone.

Better to work your way up and get a bargain I say!

I would say it's worth a try. I recently accepted an offer 10% lower than the asking price of £600k on my home. It had been on sale for over a year however. The only other two offers I received during the year were very similar.

We put a 495 offer on a 550 house, ended up paying 570!!!!
Had pulled out of house buying tho where our offer of 550 was accepted on a house on the market for 580.

I see what else has sold locally, recently, for how much.

I find out how long they've been trying to sell it.

Then I know what I'm prepared to pay for it.

Then I put in an offer for a chunk under that, prepared to work up to my limit.

Surely that makes far more sense than some arbitrary percentage?!

It's only been on ten days but don't want to lose it but obviously nor do we want to pay over what's necessary.

I would unashamedly offer 10% under the asking price.

The asking price is just a figure conjured up by the estate agent to reel in the vendor- the price of a property is really the amount that a buyer is willing to pay.

Don't worry about offending or needing to be polite, just offer what you genuinely think it is worth and are prepared to pay.

There's no set rule so not sure where you're getting 5-10% below from. Here, with an offer that low, with a property that's only just gone on the market, i think you risk estate agents thinking you're game playing or not serious.

I would be offended if you offered me that after 10 days on the market, and would think you were game playing.
If you think house is worth 580k I would maybe go in at 565k and see what happens. But if you think it's over priced that's a whole other story....

10 days on the market, they are unlikely to accept that much below asking price, especially if it is in a great location. I would not take you seriously if you went that low. We were in a similar situation and price bracket. We offered 20k below and got knocked back so offered asking price, on the condition that no one else viewed etc.

It needs two phases of extension, first about 25k, second 50k ish. So will offer 565 initially??

What is the market like in your area op - that would have a massive bearing on my decision.

Does it feel over priced? Or about right?

In a good area, strong market not feeling overpriced I think 560-565k sounds sensible.

In a slower area where the house felt overpriced I'd head in somewhere like 535-540k

It really depends on the market where you live!! Do houses usually sell for the asking price? How long do they stay on the market?

What you want to spend on the house is not relevant to what offer will be accepted. It is relevant to what you are willing to pay though. What price do houses in a similar condition go for?

Are there any current offers?

I heard some interesting advice once that you should be embarrass by your first offer. It gives you room to move upwards into figures you'd be happy to pay.

We paid £500 on a house on at £550 after an offer of £480. However, that was when stamp duty was the full whack. If you want it I would go £550 and take it from there.

What's do you think the house is worth?
I would send in a costed offer showing the price per sq ft or value after the extension plus cost of the extension

We had someone put in a stupidly low offer on our last place, and it just made us really dislike them and not want to take them seriously when they started upping it
We ended up asking the agent to ignore them while we dealt with another buyer...

We offered 20% under the asking price, were told it was "ridiculous" - we knew this and were prepared to go up to 10% below asking price, but actually settled at 17.5%.

@Sparechange Why would you send them a costed offer showing the price per sq ft or value after the extension? What you want to do to the house is irrelevant unless it's replacing the roof or something similar after the survey.

Putting an offer in doesn't mean you can't have another go at offering....

Putting an offer in doesn't mean you can't have another go at offering....

It's a popular area, valued fairly I'd say, no current offers as of yesterday afternoon. Having an architect friend draw up initial plans for us and basic costs ahead of a second viewing tomorrow. So don't want to lose it by a) them ignoring us after initial offer as per a previous poster said b) offer asking price if they'd have accepted lower - though you'd never know. Hard.