Should we offer the asking price?

[PurpleFlowersInMyHair]

We have sold our house and in a hurry to move before baby comes. We had offer accepted and were proceeding before the survey revealed the extent of repairs required (the house is not in a great state in some ways, but in other ways it’s good or new windows doors).

Last night we spotted a very similar house come onto the market - 3 streets away so there is no real difference in terms of location (same school catchment). It was built the same year and of exact same construction. We went to see it today and although it’s not decorated to our taste, it’s all done. So the repairs required on the other house will definitely not be required in this new house.

Now the asking price for the new house is the same as our offer accepted on the original house. Except the original vendors are playing hardball refusing to reduce the price by very much to account for the extensive and expensive repairs.

We now want to walk away from the original house and offer on the new house. But we want the offer to be accepted first before we pull out of the original house.

So my question is do we go straight in at asking price and ask them to take it off the market immediately? Any other tips or advice? We need to proceed quickly to get moving and keep our buyer. We understand the new vendors are willing to move quickly and aren’t looking for a new house.

Well you don’t have a survey on the second house so there may be hidden defects. If the first vendors are not interested in reducing the price, I would keep them hanging for a bit! Get a very quick survey for house 2. If you really prefer it, go for it.

I agree with pp. How can you be sure of no defects before a survey?

PPs I'm assuming the OP will make her offer subject to survey.

Yep our offer will be subject to survey

I know these houses well (they are Standard construction and we’ve lived in one already). Obviously I don’t know without a survey but they are built well and this house looks to be well maintained. Certainly not in need of replastering like other house, no asbestos (we know what to look for- as I said they are standard construction).

I’m just really interested in hearing thoughts about what offer we should go in with. Prices in area are dropping (overinflated market 1 hr from London). Usually I’d go in below asking but I think the price is reasonable. And I want it off the market ASAP so we can move in quickly before baby and not lose our buyer. I wouldn’t get a survey until offer accepted- then I plan to withdraw from original house purchase. We have to move- our house is too small. We’ve also got a FTB who is paying a good price (our house is v well presented).

If you're considering offering asking price, make (an opening?) 5% lower than asking price offer and see how that goes.

Yes, I would offer asking price on the condition it is removed from the market.

What are you waiting for! It sounds exactly what you need, i’d withdraw without hesitation and get the offer in on the new property.

5% lower and see how it goes. Start from there then offer full if refused.

Go in at 10% below on new house
See what happens
That’s what I’d do

My hesitation in offering lower than asking and it not being taken off the market straight away is that the estate agent will use it to get others to bid. If we offer asking we could get it off market straight away to avoid this, but then there is always the risk someone will gazump I suppose.

According to the EA they’ve had a few bookings already (they would say that though!). There’s nothing like interest in a property to raise the price.

I think the asking price is fair, but then prices are dropping in our area daily on rightmove as we’re in an overinflated market (and buy to let has collapsed here).

In your position I would offer the asking price. If I want it and think it's worth the price I don't bother messing around.

If the price is fair then offer it and get it off the market .... don’t waste time fannying about trying to get money off a reasonably price deal house

Good luck!

Make the offer subject to a quick move. Our buyers did.

I would offer below the asking price, but only you know the local market. We live a similar distance from London and people here tend to refuse to even consider further offers when buyers start at 5-10% below asking price (that’s 25-50k) off the cheaper houses here, and they tend to sell for 5-10k less than the asking price.

I’d suggest making an offer based on how much lower houses tend to sell for in your area, compared with their original asking price.

Don't waste time trying to get a bargain if it's already well priced. Others will spot the same thing and the vendors might just want a quick move as you do

Thanks for your thoughts everyone

@Equimum what do you mean by ‘people here tend to refuse to even consider further offers when buyers start at 5-10% below asking price (that’s 25-50k) off the cheaper houses here’? Which people? Other potential buyers?

We used to have to compete with cask investors and had to go much higher than asking to secure a property- there was so much competition. Now those buyers are all gone and the market is much slower. But this house does seem very reasonably priced.

For me, sellers who don't even come back with a counter offer, when I offer 5% lower, means either they are not serious at all; or they are financially completely stretched and have no room for manoeuvre at all.

Which means, either way, they are likely to pull out for the smallest reasons; and for me, that's a bigger risk than the price itself.

@tenapenny what do you advise? Going in 5% below asking? Yes we only want to deal with a serious seller. We don’t have time to be messed around.

Sorry in post above I meant cash investors

Go for asking price & make it a time kind offer. This will eliminate the competition & secure it for you. Move fast.

Time BOUND offer (same day)

I agree with those saying offer asking, you’re in a strong position so can hopefully offer that on the agreement that it will be removed from market and you exchange ASAP

So offer asking price, say that is our best and final offer. Our offer will expire by end of the day and we need to move by end of February?

I’m not sure how much competition there will be but I know as soon as a house has offers on it, interest from others can pique. Also there are a lot of crap properties on the market right now which have been on for weeks (unusual in our market) and prices reducing.

This one does stand out due to proportions, big garden, potential for extension and how well maintained it is. But the decor isn’t great (modern but not very appealing ie cheap laminate everywhere, modern but not very tasteful kitchen). Also it’s made of concrete (one of the best built kind- no problems) which will put some people off. Location wise it’s in one of the most desirable areas and close to good schools and the hospital (major employer).

^ I’m finding it tricky to know how much interest it will generate- whether others will see the potential we can.

I think you might be slightly optimistic for end of Feb if you have a chain, but it's wholly feasible. As you're in a rush, and we were when we bought this house four years ago, tell them it's asking price, house off the market, and you want to move in beginin of March, don't say offer expires end of day, the sellers might be away some place and they do need time to think about it.

But do be realistic, even with the best of intentions, end of Feb might not work as chains can be complex.