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Original poster

How much would you offer - or how low is too low?

25 replies

SouthwarkSkaters · 12/03/2018 00:25

Sorry for another ‘how much to offer’ thread, but I would like hear some opinions before I go about insulting the seller

We are interested in a house in the village we live, it’s not the dream house but could be great with a bit of work. It’s the only house available in our search area that ticks all the boxes at the moment. Asking price is 325k.

House has been on the market since May last year, price has not been dropped. Reason for sale is divorce. No offers have been made. Last house to sell on the street sold for 280k in 2012, but that had been extended so much bigger than this one.

Is 275k too big a drop or a decent enough starting point? The length of time this has been on the market makes me think it’s probably way overpriced. Houses in this village tend to sell reasonably fast - the last two sold within 2-3 weeks.

We are going for a second viewing on Saturday, any help appreciated.

OP posts:

TheJoyOfSox · 12/03/2018 00:31

It won’t hurt to offer low, you can go higher if they say no. I’m not sure if your offer is ok or a bit low as I’m pretty useless at this. The vendors will know how low they are willing to go so be a bit cheeky and best of luck with the move (wherever that may be)

Penguinsandpandas · 12/03/2018 00:36

Fine to start at £275k but do check at what price it should be as almost certainly overpriced.

Failingat40 · 12/03/2018 01:00

Don't waste their time going for a second viewing if you're planning on offering so low.

An offer like that would irritate me to the point of not entertaining you at all.

Surely a valuation survey has been carried out and this is where the market value has come from?

If they're divorcing they'll need as much money from the sale as they can get so it goes two ways.

notangelinajolie · 12/03/2018 01:09

Don't go too low. Offer what you think the house is worth. A young couple made a low offer on the last house we were selling and we told the estate agent to tell them that since they were taking the piss we would not now even consider selling our house to them ever.

Penguinsandpandas · 12/03/2018 01:11

I put in a similar offer and ours and reached a deal £5k higher.

ThroughThickAndThin01 · 12/03/2018 01:26

How could you know no offers have been made? It could possibly have been on for so long because it’s a divorce. They may have had low offers before and one of the couple isn’t budging on price. Normally the one that’s still in residence.

Anyway, I think it’s more likely you’ll need to go closer to the asking price than you think.

NurseryFightClub · 12/03/2018 06:59

House is worth what someone prepared to pay. Given a larger house sold for more I'd explain why you offer to them. Look on zpopla to see average house price rises do similar area

wowfudge · 12/03/2018 07:03

A valuation survey is usually only undertaken by a surveyor (qualified professional) once a sale has been agreed and it is for the benefit of the mortgage lender. The asking price is the EA's best guess and sometimes inflated for various reasons.

Offer what you think it is worth and can afford. Don't play games.

FluffyWhiteTowels · 12/03/2018 07:10

I think that's a bit low if the other one sold 6 years ago for. £280k albeit bigger. But only you know if it's been maintained or improved over last few years.

Speak with the EA. but at the end of the day you offer they say yes or no depending on their desire to move or not.

Good luck. It is hard with negotiations.

SavoyCabbage · 12/03/2018 07:25

I wouldn't start at less than the other time he had sold for in 2012.

Mrscog · 12/03/2018 07:29

What’s your area like? If you were in our area the 280k one would go for 320ish now so you need to bear that in mind. I suspect they was 300, so I think if I was going to do a cheeky offer I’d start 285-290.

Motherof3Dragons · 12/03/2018 07:30

It’s sound like the market in your village is quite active, if other houses sell fast. A house that’s on the market for a year is certainly overpriced, if it‘s not selling quickly. It doesn’t matter, if the vendors only want to sell it for a certain price - if the valuation of mortgage lenders is much lower, a sale will only go through if they‘d find a cash-buyer with deep pockets, who falls head-over-heels with their property. With all the uncertainty around Brexit, buyers are getting rather hesitant, paying over-the-odds these days. If they are getting offended by your offer without trying to negotiate upwards, good luck to them - you‘ll find another house with more realistic vendors.

Original poster

SouthwarkSkaters · 12/03/2018 07:55

Thanks everyone - divided opinions, I see. We can afford the 325k but don’t think it’s worth it iyswim. It definitely needs cosmetic updating - you could probably live with what is there but it’s very very dated.

We were not sure 15-ish% under was way too low, as we certainly don’t want to offend and close doors. I think, seeing the opinions here, we’ll start a bit higher.

ThroughThickAndThin01, I know no offers have been made because I asked the estate agent at first viewing and that’s what she told me. Plenty of viewings but no offers. It could be a lie, I know, but surely if she was to lie, she would’ve told me there had been loads of people interested?

OP posts:

bastardkitty · 12/03/2018 07:59

I think it's fine to offer low. Maybe 275 or 280 and be prepared to go to 285. I suspect, from what you've said, that this house might not be priced to sell though.

MaverickSnoopy · 12/03/2018 08:11

If the house is overpriced I would certainly want to offer lower. House prices will drop and you really don't want to be in negative equity. I can't shake the feeling that 275 seems quite cheeky though. Are there similar houses in other areas of the village that have sold more recently that you could compare against?

JoJoSM2 · 12/03/2018 09:15

What have prices done in the area since 2012? Have they been the same? If other properties have gone up in value then so would have this one.

However, if the sellers are a bit deluded re pricing, they won't entertain a very low offer anyway.

What's a genuine amount that you think would be fair to pay for the property?

PatchworkGirl · 12/03/2018 09:28

I wouldn't worry too much about the asking price - you don't know if they've had a sensible valuation or are dreamers. Offer what you think it's worth/what it's worth to you and be prepared to either negociate or walk away. After almost a year on the market they'd be very silly to get huffy and offended.

namechangedtoday15 · 12/03/2018 09:32

I think if what the EA told you is true doubtful then the vendors aren't interested / can't sell.

If it's been on since May and there have been no offers, then any reasonable EA would have advised them to drop the price. If they haven't, they either can't afford to, or one of the couple refuses to (as a means of prolonging the stay in the house).

It therefore means a low offer is unlikely to be entertained and potentially, even if it is accepted, it's unlikely to go through quickly. A sale with a divorcing couple can take months and months to go through.

KittyKK · 12/03/2018 10:38

Make the offer that you’re comfortable with and know what your cut off would be (I.e. max price you’re prepared to offer). It will help to provide background that you’re proceedable etc.

15% below asking price doesn’t seem unreasonable given the history.

I’ve viewed a few houses that are being sold due to divorce. None of them seem straightforward. One of them was like you describe (on the market for a long time and overpriced), so I didn’t pursue it. Just last week they accepted an offer for less than I would have offered a couple of months ago (had I thought they’d be open to low offers!). Another house was really poorly presented and overpriced (on the market for 12+ months). Turns out that the wife doesn’t want to sell the family home, so is only pretending to go through the motions of finding a buyer!!

Good luck OP!

Penguinsandpandas · 12/03/2018 12:26

The only house sale I know due to divorce here has been on the market for years on and off around 20 percent above what its worth. I do wonder if the man (who lives in it) doesn't want to sell but wants to appear as if he's trying.

Toooldtobearsed · 12/03/2018 12:31

Can you see how much they bought it for? Might be a useful guide, so you can be sure that your offer would not put them into negative equity, but would allow them some profit.

KitKat1985 · 12/03/2018 12:41

I'd probably start at about 290k, with an expectation to eventually get to about 310k.

Original poster

SouthwarkSkaters · 12/03/2018 13:26

Loads of things I hadn’t considered! Thank you all. It might well be that the party still living in the house doesn’t want to sell, though the estate agent have said they are only living there part time at the moment (I didn’t ask what she meant as didn’t want to look too nosy). I will clarify the chain situation on the next viewing.

Also, I thought being a divorce might have made it a simpler transaction - with them wanting to move on - but I see it’s not always the case.

I think it would be fair to pay 290-300k but we have a little devil over our shoulder (SIL!) saying we should start very low - if I didn’t think it was way too cheeky I probably wouldn’t be asking.

Unfortunately I can’t see how much they bought it for. I think they have been there a long time, judging by their furniture and family photos.

OP posts:

Tika77 · 12/03/2018 13:38

Prices in my area were in a dip in 2012 and have gone up a lot since. I personally would be offended by this offer if I was expecing somewhere around 300.

Tika77 · 12/03/2018 13:40

Mind you, we offered 30 K below asking in a similar price range and the seller was upset first but the agent reminded him that his house had been on the market for a while in a falling market (2011).

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