Putting in stupidly low offers?

[Bells3032]

My husband and I are planning to start look at property in September for a four-five bed house. We are waiting for September as my husband is on probation for a new job til then. After that we will both be in good, stable jobs (hopefully).

There's a few houses coming on the market and some things that have been on the market for a while but most of them are a little over our price range.

We are thinking come September we may try our luck at putting in very low offers compared to the asking price as we will be completely chain free (living in a flat owned by his parents atm so don't even need to give notice and can make completion as quickly or slowly as people want) and putting down around 40% of price.

Do you think this is a good or bad idea and if so what asking price do you think we can go up to?

Our budget is about 950,000 (we may be able to go up to a million if there is nothing beyond basic painting etc required)?

depends how desperate the seller is, media seem to be cheerleading the declines now.

www.dailymail.co.uk/news/article-8315081/Coronavirus-UK-Homes-flood-market-desperate-owners-battle-sell.html

Seriously? By all means do your research and see what prices properties achieve this summer, but I don't see prices dropping by much. I keep an eye on the market and the good ones are still selling.
Offer 10% below asking if it's been on a while but be prepared to negotiate. I've never found being a cash buyer much of an advantage (I buy and sell for a living and all my properties are bought with cash). It's not getting a mortgage that holds things up but the speed of your conveyancing and council, or managing agents getting their account pack out.

At that level and higher, I found a lot of vendors were downsizing, divorcing or going through probate. Unless you get a really desperate vendor who is forced to sell quickly, I don’t think a “very low offer” would be successful. You’re more likely to offend the vendor and if the EA doesn’t think you’re a serious buyer, they’re not going to spend much time on presenting the really good properties.

Don't ask, don't get! But don't forget the stamp duty - it's a total bastard.

We just went on the market and our EA won't be accepting viewings from anyone who isn't a serious buyer in a progressable situation. And at that kind of money, you'll be shown the door very quickly unless it's a distressed sale or a wreck.

A chain free buyer that far up the scale does have advantages as it reduces the jeopardy. What you put down matters not a jot.

When you say very low, what do you mean?

We offered £1.13m on a £1.3m and got it for that.

Our neighbour was on for 910k and someone who viewed 3 times offered 450k. That was taking the piss and just ridiculous time wasting.

If you find a distress sale with no competition, you might get a bargain. Otherwise the only way to get a very low offer accepted is because no one else wants it. On that basis, is it a bargain?

Well that's kind of what I'm asking - what would be a reasonable very low offer and what would be just be completely mad and no chance?

Not sure why people jumping down saying wouldn't accept as low as I am offering but haven't said how big a difference I am taking about. I want to know what price difference people would still consider

Ie I know its not reasonable to offer 950k for something on at £1.5mill but would it be too low for £1.1 or even £1.2??

Well £1.2 for £1.5 is 80% of asking. I think that’s a very punchy offer, but you could start there. You’d be very lucky if it was accepted though. However, we’ve got houses round here on for those prices and frankly they are not worth it. Eventually the price drops, usually over months though as low offers soften up the sellers expectations.

I know that we paid well (despite the discount) for our place at 1.13 as it’s a total wreck. The circumstances matter as a wreck means it’s a small pool of buyers. Best take what’s on the table. The asking price at £1.3m was ridiculous, it hadn’t sold, we came along and they knew this.

A house that’s in better condition has a bigger pool, less chance of a bargain IMO.

If you’re not picky offer on loads, one might take it. My experience of buying is that one tends to want a particular house, not just any house.

Sorry I meant 950k to 1millikn for 1.2million. Not sure if that's too low. Here 1.2 will get you a nice house of about 2000 square feet in good condition
Looking to the london/Herts border

The other point too is, if the recession bites, you’ll have more luck on repos and divorce cases. Not convinced that’s worth waiting for as it may never come

I think you’d be silly to offer at almost 20% under on the London/herts border unless the house is ridiculously overpriced/a shithole.

Also be careful of getting a reputation with the local agents of viewing houses above your price range and then making silly offers - many won’t grant you viewings if you do that a few times.

Wow! Where do you live 😳 Was coming to say we went in at 167k on a house that was on for 180k and we agreed at 173k..

Well 950k for 1.2m is about the same % l think you’ll be lucky to get it to stick, but so what if they don’t like your offer - you may find an insulted buyer isn’t that easy to deal with if you REALLY want it. Offer what you are actually prepared to pay.

We offered 920 on a 995 house which had been reduced from 1.1m I’ve rather course
If a year. They asked for more we ended up at 925k. 🤷‍♀️ You offer what you think it is worth to you. That way if you get it ok, if you don’t then it wasn’t for you. 10% less of you have a good package like you do is reasonable. Maybe more? But just offer what you believe it is worth less a small amount otherwise you look a twat offering 200k less and then paying it anyway.

there's no such a thing offer 10% less.
people seems to think 10% less is a kind magic number to offer on property, so if i overprice my property by 10%,then i end up getting my price?

do your homework, watch and compare properties from now until you ready to dip in.
the more you look and compare the more you discovered why a property isn't selling or why it was sold over asking price.
if you minimise your area,size,type...etc you become so good at it, as soon you see the property ticks your boxes you would know what to offer, if you don't get it, then be assured you did the right thing.
so offering under or over is a matter as mentioned above(location,size,condition,schools,near a station,market)

Didn't you say in your op that you want to offer 40% less?

No, I think that is the OP's approximate deposit? I may be wrong though.

@fartyface ahh I realise why people were saying that that kind of offer was too low when I hadn't said the amount.

To clarify 40% is how much of a deposit we are putting down. I meant as a hopefully won't have too many issues with a mortgage which may be difficult for sore right now

Offer what you like, but equally accept any rejection in good grace. The seller has the right to decline any offer - as much as the buyer has the right to make one. Some sellers will be open to negotiations, others (rightly or wrongly) won't.

The aggro comes when a buyer offers lower than asking but then gets the hump when it's declined.

Vulture and jackal time? Every property, agent, buyer and seller are different - so there can be no general rule as to what is an ''OK'' low offer.