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Original poster

Offering below asking price

44 replies

propertynovice9 · 30/03/2019 14:34

I've seen a property for 350K. Been on market for 4 months, no offers yet. Has lots of things it lacks which is why it hasn't received any offers I think. Needs new bathroom and new kitchen. Considering time it's been on market and no offers what's the lowest offer I could make? Seller is happy to accept lower offers but have no idea how much I could get away with?

OP posts:

AwkwardPaws27 · 30/03/2019 15:06

Have you looked at what comparable houses in the area have sold for recently? That's a good starting point.
Is it priced to reflect the work needed?
It's hard to say without knowing if it's realistically priced or not.
You can only make an offer and say why you have offered that; some sellers take offence, but many would use a low offer as a starting point for negotiation. Are you in a particularly strong position (cash buyer / no chain) - again, you could probably use that to go a little lower.
If it's realistically priced, reflecting the work needed, I'd probably go in at £325k and expect to negotiate up to £335k.
If it's priced the same as a newly refurbished house I'd go lower and say why, literally 'X address sold for £x but this house needs £xk of work to bring it to the same standard'.

Jent13c · 30/03/2019 15:13

My BIL is our solicitor and says the number one rule is to not discuss anything re price/circumstances with the homeowner. It takes away your bargaining power. When we bought our flat it was offers over 100k and he offered 89. We got it for 96 in the end so still well below asking. We sold the same flat but the buyer told us he was going to offer 100k, so even though we would have probably sold for 92k as it had been on for a while we knew he was willing and able to pay more so held on for 98k. You solicitor will guide you with what to offer. (Or estate agent..not sure of the procedure outside scotland)

NotSuchASmugMarriedNow1 · 30/03/2019 15:37

Standard practice is to offer 20% less and meet the seller halfway at about 10% less hth

Tulipvase · 30/03/2019 15:41

Not sure I’d want to accept 315k if asking price was 350k unless I was desperate. Or it was overpriced to start with.

AwkwardPaws27 · 30/03/2019 17:14

*Standard practice is to offer 20% less and meet the seller halfway at about 10% less hth"

Not in my experience, and it's massively dependant on the market at the time and in the location. In my area, for at least the last few years, houses have tended to sell for asking price or within 5%. In London a couple of years ago, it wasn't unusual for places to go for above asking price due to the amount of competition.
I think it also depends a lot on the listing price too - offering £80k on a house listed for £100k is different to offering £280k on a house listed for £350k.

Alexalee · 30/03/2019 17:15

Where in the country... and what are recent sold prices for similar like

Bluntness100 · 30/03/2019 17:25

Standard practice is to offer 20% less and meet the seller halfway at about 10% less hth

Eh? Standard practice where, in your head?

Op, work out what it's worth and make an opening offer, see what they say, if they say no, ask what they will accept. If they won't tell you, just start to raise it to your max level.

Alternatively you can not mess about and simply put in one offer of what you think it's worth, and tell them it's final and you want it off the market if accepted and be prepared to walk away if they say no.

bibbitybobbityyhat · 30/03/2019 17:31

Try £325,000?

sandybayley · 30/03/2019 18:00

20% under asking as standard? You must be jokingly. As a buyer I'd not even enter into a discussion with someone who did that if I'd thought carefully about my asking price. It would only work if someone had massively (ridiculously so) overpriced their property.

Totally depends what similar properties are selling for so check the land registry for the most recent comparable sales.

We have gone under offer this week, accepting an offer 3% under asking. I'd have laughed at anyone offering 20% less and not engaged with them until they made a sensible offer.

Original poster

propertynovice9 · 30/03/2019 18:21

Thanks all. Here's some more details. House is in very desirable area in centre of town so I'm surprised it hasn't had one offer yet. Houses in this area usually get snapped up immediately.

House in question is 350K & very dated. Can live it in but needs new bathroom & kitchen and has no garden. 60 sq. m.

House in next road on sale for 450K. Very modern, bigger house, 70 sq. m and massive garden.

Similar sized house recently sold, also 60 sq. m for 370K. Also very modern and massive garden.

So it seems 350K is overpriced considering no garden and needs updating.

So, I'm thinking 20% reduction is a good starting point considering this will be the first offer + no garden + work needed??

OP posts:

Bluntness100 · 30/03/2019 18:24

I think that's a massively low offer to be honest, at 280 k, but you can always try. I'd expect a no at that.

ThroughThickAndThin01 · 30/03/2019 18:27

Try it, but expect both a no and a fuck off 😀.

It’s been valued in its current state. If it needed no work would probably be worth more.

However, they may just consider it you never know.

Notwiththeseknees · 30/03/2019 19:24

Do you mean it has absolutely no garden or a tiny garden? 350k for no garden & needing updating against your comparables is mad. Absolutely offer 20% below and if they don't accept, walk away.

FranklinTheCat · 30/03/2019 19:28

I'd probably offer £300k (as psychologically the seller may blanch at dropping below that), with a view to going up to £315-320 if I thought that was reasonable in terms of the work required and the seller wasn't budging. But I agree the asking price sounds optimistic in view of the comparables.

Original poster

propertynovice9 · 30/03/2019 20:09

@Notwiththeseknees exactly what you have said. It basically has a paving slab for the 'garden', not even enough space for a table and I forgot to say the view from the back of the house is a wall! Not much light and no garden but below 300K is all I can afford hence this question. I'm also slightly worried as it has had no offers at all in 4 months! Am I missing something? Or is it so massively overpriced no-one has bothered with an offer?

OP posts:

Alexalee · 30/03/2019 20:17

No garden and 60m2... I assume a 2 bed
What does a 2 bed flat go for in that area?
I would value it closer to that.
I think below 300 is too low though

Notwiththeseknees · 30/03/2019 20:36

Exactly as @Alexalee has said - it should be priced as a flat. If you bought a flat with a share of the freehold you could possibly get outside space too.

A house with no garden is the worst of all worlds as it will be difficult to maintain with no access for ladders and you have a limited market to sell on to as most buyers will want at least a courtyard (even if it is tiny & north-facing - Burgh Street I'm thinking of you!). If the house had been designed to within an inch of its life, I could see perhaps an attraction BUT I think this one would be better developed into flats. Would that be a possibility for you?

Despite its negatives, if you want it badly then go in with a very low offer & bag it as an absolute bargain so you can at least take a low offer when you try to sell it in the future.

Bluntness100 · 30/03/2019 20:52

Op, if you want it, and below 300 is all you can afford, then go in with your best and final offer. Tell them you'll walk away after that. I suspect it will be a no, but if you want it, it's worth asking the question.

Bluntness100 · 30/03/2019 20:53

Despite its negatives, if you want it badly then go in with a very low offer & bag it as an absolute bargain so you can at least take a low offer when you try to sell it in the future

Eh? You do know the current owners have a say in this, and their house has been valued at 350? It's really not the case of if she offers they need to accept it, it's highly likely they will tell her to fack off.

Original poster

propertynovice9 · 30/03/2019 21:51

Just found another 2 bed house in the area for 375K. Also very modern and bigger (65sq.m) and again massive garden. So now I'm thinking 350K is way over priced for this one. 2 bed flats in same area going for 275-325K and they are super modern.

For those saying it would be insulting to offer so little I'm not sure given above. You should see the photos! It looks like it was last updated in the 1970s & no garden etc. It's a teeny tiny 2 bed in a great location so would suit me. They could say no but I won't have much to lose.

For the record on present house we offered 10K below asking price and it didn't need any additional work. Most people at the time advised us against it because desirable area/high demand etc but seller wanted quick sale and accepted it so you never know!

Likewise, house prices are coming down slightly yet estate agents are still valuing houses highly I think, where I live at least. If you look at prices they were advertised at versus how much buyers paid it's usually lower. Plus so many houses are being reduced at the moment.

Thanks @Notwiththeseknees I hadn't thought too much about selling on if I did buy it or something similar. It's so tiny as a 2 bed, not sure it would convert to flats. And also now wondering if I should make an offer at all if no-one wants it when it comes to selling.

Thanks for all advice though.

OP posts:

bibbitybobbityyhat · 31/03/2019 10:20

Perhaps concentrate on finding a house with garden that you can afford? Very few people want to buy a house with no garden at all.

AwkwardPaws27 · 31/03/2019 10:51

If you did get it for under £300k, would you have the funds to modernise it?
If it hasn't been touched since the 70s it may need rewiring, new boiler/central heating etc in addition to that new kitchen and bathroom. I'd get a thorough survey if they do accept.

Bluntness100 · 31/03/2019 14:23

Op, you can come up with all the reasons in the world why this house is worth 280 and not 350, and try to convince every single person on mumsnet, but ultimately someone owns that house, and they think it's worth 350, and although willing to accept lower offers, it's very doubtful that's seventy grand lower. It's a huge amount.

You clearly want it, put your offer in, the worst they can do is say no. It doesn't matter what anyone else thinks, it doesn't even matter what you think, it simply matters what rhe owner thinks,

ChanklyBore · 31/03/2019 14:32

I started at 30% less and ended up paying 18% less than the “offers over” asking price on current place. Can be done. But it takes two to tango - you can offer what you like but it’s their change at the end of the day.

Original poster

propertynovice9 · 31/03/2019 19:48

That's true @bibbitybobbityyhat Don't think I can afford a house with a garden in that area so this is my best option at the moment. I guess it would be like selling a flat in the future.

@AwkwardPaws27 Good points. I'd definitely get a full survey. I'm hoping others haven't already done this on this house and then pulled out. Would estate agents have to tell me that if so? I'd have a little to do it up but not much.

@Bluntness100 That's true re: owner so you never know until you try.

Wow @ChanklyBore that's a great deal. What were the reasons for starting with a 30% drop? Did it take long to negotiate the final price?

OP posts:

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