FYB- how to you navigate the negotiation process

[Toria281]

Hi,
I am a chain free FTB with a mortgage in principle and decent deposit ready to move fast if need be.
I viewed a property I was keen on, on Monday afternoon. It had only been on the market a week at 240k, but no offers so far.
On Tuesday morning I put in an offer for 225k (6% off asking price).
It was rejected the next day, with the EA stating that the buyer really liked my position, but is looking closer to the 235k mark.
I told the EA that sorry, i couldnt stretch to that amount (and to be quite honest wouldn't pay that even if I could).
He then asked what I could stretch too if I could increase my offer and he will see what the vendor says. I told him that I would think about it.
As far as I am aware there have been no other offers, but am willing to go to 230k (which at 4% under asking and a chain free buyer, i think is a very good offer).
How would you play it now? Do I hold tight for a few days or up my offer now? And what to?

Total novice at this and buying alone as a single woman could do with some advice!
Thanks all

Honesty, it depends on how keen you are on it. The question to ask yourself is this - how upset would I be if someone made an offer for 230 now and you missed out on it? Would you be gutted or not that bothered? If the former, then don't waste any time and get your best offer in :)

There’s no way to advise you as there are too many variables, the most unpredictable being the vendor’s personality. But I’ll try anyway!

Firstly, 225 was optimistic. The property has only been on the market a week- if it had been on for six months then maybe that would be a reasonable offer.

You have already seen a 5k reduction essentially in what the EA said. That’s their opening gambit so there’s probably scope for more. However if 230 is your limit, put your offer in and be clear it’s your final offer. Be prepared to sit tight. Otherwise just offer 230 and see if you get a counter offer.

Don’t put too much stock in this % below asking price idea. It’s not really how people think when they’re selling.

You might get it for 232... good luck whatever you decide.

If you don’t think you’d pay 235 for it then I’d offer whatever your maximum is and look elsewhere. Then probably check back in with them in a couple of weeks time if you haven’t found somewhere.

I’ve only sold one house but I was adamant I wanted the estate agent to get me what he told me he could (which was 5k off asking) so held on and rejected all lower offers. But I wasn’t in a rush to sell 🤷🏼‍♀️

Thanks all. So you would recommend going straight in with your max rather than upping to say 228k followed by 230k as a final bid if rejected?
I do like the place but I have only been searching for a month or so since the market has reopened after covid and this is the 4th property I have viewed, which makes it difficult as I dont have a great deal to compare it to. I would be a bit miffed if it went but i dont think i would be devastated, thats why i was wondering if it would be potentially worth waiting it out for a couple of weeks when the initial interest had died down?

@Toria281

Thanks all. So you would recommend going straight in with your max rather than upping to say 228k followed by 230k as a final bid if rejected? I do like the place but I have only been searching for a month or so since the market has reopened after covid and this is the 4th property I have viewed, which makes it difficult as I dont have a great deal to compare it to. I would be a bit miffed if it went but i dont think i would be devastated, thats why i was wondering if it would be potentially worth waiting it out for a couple of weeks when the initial interest had died down?

Don’t mess them about. If you’re prepared to pay £230, offer that and tell the agent it’s all that’s on the table. Then walk away if it’s rejected. To be honest, I’d be holding out for asking if it had only been on the market a week.

We sold our house last week. The first offer was 2.5% under asking, but because we are in a popular area the agent negotiated between two up to asking price. It really depends where you live - our agents said that the best time for us as sellers to get a good price was into the first few weeks when interest was high. Are thereanyfber interested parties? I would put best and final in and see what happens. That's what we'll be doing I think (after maybe trying for a lower offer if something has been on the market a while).