What is a socially acceptable % to offer under asking price?

[ThatVeganFeminist]

I'm about to be in a position to buy my first house!!
There aren't many on the market in my area but those that are there seem to stay on for months. There is a house on at £260k and my budget is £248k. Is it reasonable to offer around £245k? It's in a right state cosmetically and will need fully redecorating. I don't know if the buyers will think I'm cheeky or if they will try to negotiate above what I can afford.

Definitely offer below £250k.

If I don't want to pay more than £245 should I start by offering less? Or just go straight in with the price I want to pay and negotiate up to my maximum if I have to?
Sorry I know nothing! I read threads on here by sellers who are affronted at low offers and refuse to engage with the buyers on that basis. I don't want that to happen!

Hi! £245k sounds about right as a first offer but be expected to counter offer. It really depends on several things on whether they will accept the offer ie how long the property has been on the market, whether they are in a chain, whether they are after a quick sell, what other properties around the area are selling for, and what kind of state the property is. You say you would need to redecorate, is this just the case of painting the walls or something bigger like a new kitchen / bathroom?

It's also important for them to know you're a first time buyer and therefore not in a chain. When you put your offer in make sure the agent knows you're a serious buyer but there is little wiggle room in your offer.

Good luck!

Thanks!
It's currently empty and was reduced in November but I'm not sure how long it's been on for. I'm ready to go whenever as I am in a rolling tenancy so I'm a good prospect. I think (hope) it's just cosmetic - the house looks well cared for but fugly. Avocado paint and swirly carpets and pine panelling everywhere

Ah if it's empty it may not make a difference to them that you are a first time buyer. Unless it's a will probate?

Have you tried finding out from the agent what kind of previous offers they have received more recently ? £245k to me sounds like a respectable first offer though.

Ps that does sound fugly! However it's nice that you will be able to make it your own.

Offer 10% under asking so -£26K (that’s fairly standard) and build up slowly from there.

Who cares what's a socially acceptable amount - you're not aiming to be friends!

What do similar houses go for? How much would it cost to get it up to scratch? It might be significant over priced for all we know and only worth £200k for example, in which case offering £245k would be daft.

I posted this on another thread
Its a frustratingly unanswerable question.
There is no universal right course to take

You might put in a low offer on a house, and the vender accepts it because they are desperate to complete their change

You might put in a very overpriced high offer in and the vendor might decline it even though its far more than reasonable.

Sometimes people have a set price they have to sell for to make up sizing possible or just some random amount that they feel the house is worth so to offer less would be an insult(which may or may not be a price based on reality or they could be deluded).

Unfortunately its just hard to judge.

If 3 identical houses were for sale

If one is priced for 400 and you offer asking price you've got a. good deal.

If one is priced 440, and you offer at 95% of asking price you might feel you've got 20,000 off but still pay more than house a

If one was 390,000 and you offer over asking price than you still might have a deal!

And unfortunately how much a house is worth is made up of a million factors. If for example a house is up for 200 and it needs renovation works, the price you would offer would be very different if its a 250,000 house needing 25,000 of renovation or if its a 200,000 house needing 25,000 of renovation. The vendor might have already discounted it for the renovation

Where i am, houses are routinely selling over asking so what would have been the right tatic 6 months ago or even two towns away, wont be the right one here

Its very different if its the only house for sale in a village to if its competing against 10 houses on the same road (even with that are the all identical or will this one insist on more because its the only one with parking)

I offered reasonably on a house that was declined, that house is still for sale a year later and the vendor is declining similar offers because they are happy to wait for the right amount to come

Often on mumsnet you here people say they wouldn't negotiate/entertain further offers if offended but as long as its within 10% of price then most reasonable vendors won't refuse to enter into negotiation (even if its just to say asking price only)

Our house was on for offers over £179,950 we went in at £172,000 and secured it at £177,500 so smaller numbers than you were thinking but ours is cosmetically fine, nothing really needs doing to it.

My colleague is always talking about how he got a substantial amount of his house and I was silly for paying over asking. However we bought in two very different climates

Also both of us paid the survey value and if he put his house on now he would get the same amount of return that fits the price he paid

Its a bit like the tk maxx sales, 30% off something that is massively over priced may just mean its now a normal price!

Ours was on for 279, reduced it to 269 after about a month and we accepted 250.

I dare say we could have held out longer and got up to 260 or even the asking price but 250 is enough for us to have the equity we need to afford our next house and having made the decision to move we just want to get on with it.

You can look in Rightmove and see what houses nearby have sold for. This will give you some idea. You can also calculate the price that houses in that area have been sold for by the square foot. You can even break that down by price per square foot given standard of decoration.

If you go armed with reasons like that for your offer, you will feel more confident.

There's no set answer. It's worth seeing what else other similar properties have sold for. Usually the fact houses need work doing is reflected in the price, so I'm always a bit wary hearing people saying they'll offer really low on a property because it needs work.

I've turned offers down for being woefully low because even if the prospective buyer finally came up with something reasonable, I'd be concerned they would be the sort of person who'd try to hold the chain to ransom or start wanting to find excuses to knock money off later and threaten to break the chain.

Agree that there is no set answer. Some people will take an offer which is substantially below asking price and some people will only accept full asking price.

One thing to recognise is that most people don’t have their first offer accepted if it’s a decent chunk below. They do have to increase their offer. So, it’s probably best to start below the max you will offer.

Remember when you offer, to specify anything you want included as part of the offer such as white goods, carpets etc. And also emphasise that you are in a strong position ale to proceed rapidly as a first time buyer. If you have a mortgage offer in principle state that and it can also help to say you know the solicitor you will use. You want to give the impression you are capable and not flakey or likely to pull out. Things like this can help a seller accept a lower offer.

Good luck. Let us know how it goes.

Thanks a lot everyone.
I guess there won't be a chain to break so hopefully that won't put people off if they think I'm taking the piss!
I'll have a look at similar properties. Houses in that bracket go on for similar asking prices, some more which are in better condition and some lower which have clearly not been decorated since granny was a lass.

A bit less than you think it's worth. You're buying a house, not making friends.

Sounds like you are chain free and in a position to proceed. For a house like that, be aware it may not just be cosmetic. Especially if it's empty through the winter.

You're in a strong position. Go lower than you think. Take the reaction of the Estate Agent with a pinch of salt. They are playing a game and want as much money as possible.

Your idea of £245k doesn’t sound unreasonable as a first bid.
If you have to go up to £248k you can....and say it is absolutely your max and you can’t stretch any further. But again emphasise all the positives about you as buyer.

Good luck.

Thank you!!
I could live with the fugly green and pine if necessary :)

If probably go in at 240 to give yourself a bit of room to raise the offer.

Thanks. That's less than 10% under asking so shouldn't be treated as an insult hopefully!!

worth mentioning that if the avocado includes the bathroom suite, that means there's been no attention to the plumbing in forever. You may be looking at more than cosmetic issues.

agreed - business transaction not marriage proposal. Offer what it is worth to you, if they say 'no' then either walk or offer more. Good luck!

Thanks for all the advice!

I'd go in at £243k, as a serious chain free buyer who has a set budget and has to take into account the cost of updating. Being chain free is worth a lot of money to many buyers.

Thank you!

This is a useful thread thanks OP

I'm interested in one on at 265. Considering an offer of 240, rising to 245 if necessary.

First time buyer.