When offering under asking price…

[Brickadvice]

is it a good idea to give reasons? Does it make the seller more likely to accept?

For example, house on for 210, offering 195, should I say I’moffering under to take account of the need to update decor, re-render extension, 1 new window?

Or it it better to keep shtum about my reasoning?
It’s an empty property, not currently a lived-in home, so maybe sellers less likely to take offence at criticism, but who knows?

Does it also imply I’m not willing to negotiate? (which I am).

Thanks

I would give reasons. Can you compare it to similarly priced houses?

I'd be surprised by anyone accepting offers below the asking price right now, but that might just be because anything decent in my area ia selling within day.

How are other houses in the area priced, and does the price of this one already reflect the fact it needs work / mondernisation?

@HollowTalk

I would give reasons. Can you compare it to similarly priced houses?

Yes actually, one in the same terrace was advertised at 185 in the autumn. I don’t know what it actually sold for, it’s not on land registry yet.

@Whinge

I'd be surprised by anyone accepting offers below the asking price right now, but that might just be because anything decent in my area ia selling within day.

How are other houses in the area priced, and does the price of this one already reflect the fact it needs work / mondernisation?

It has a few drawbacks, including no parking, not even on-road, so while I’m willing to put up with this, I don’t want to pay an inflated price (which I think 210 is) even though technically I can afford it if push came to shove.

As with all offers it depends on how much you want the property, how many others might want it and how keen the sellers are to sell.

I would always be polite though. If you share your reasoning with the estate agent they can decide what and how they share with the vendor.

I was once responsible for a probate sale. Nice property, nice are, maybe a bit run down as had been empty for a couple of years. Some potential purchasers were extraordinarily rude and seemed to think they qualified for a huge discount because the owner was dead.

I wouldn't bother. Just offer what you think it's worth and go from there. When selling I couldn't care less why a buyer is offering whatever - they may want to update a bathroom I think is perfect as is; obviously repairs but you would think the house was priced accordingly.
Unless something unforeseen comes up in the survey, you are offering on what you see, and the seller can see the extension needs attention.

If you give reasons you give them the opportunity to disagree. Just offer what you are prepared to pay, but as others have said it might not be the right market for you.

Thing is, houses are generally priced to reflect their current condition so if I was the seller and heard your reasoning, that would be my first reaction. If you think it’s overpriced based on other sakes in the area, by all means offer lower, but I don’t think you need to be going into your reasons.

Yes, give reasons. Say you think it's worth x amount but it needs y and z doing at such and such cost. Keep it brief. If that's what you think it's worth and that's what you're prepared to pay. I've done this a few times. It's common for sellers and estate agents to flip out which I find curious. Then you know there's nothing doing and you walk away. But we did pay about 7 percent below asking price for our current property. The vendor wasn't happy about it but she'd only had one other offer in six months so she took it. A house is only worth what someone is prepared to pay for it.

My neighbour has had offers £10k under from buyers looking to increase their property portfolio arguing they are chain free. They've accepted an asking price offer from a FTB.

When I sold my house 3yrs ago, the first offer I had was 30% under the asking. No reason why. I refused and sold for asking a few days later.

So in other words, no, no need to explain. Just offer, if it's accepted then great, if not walk away or renegotiate.

Yeah, you could give reasons but as others have said, it might not be the right market for this. I want to cry when I look at the amount houses have gone up since the pandemic but there's no use thinking too much about it. I put offers in on 9 houses, all over asking price and got outbid on every single one except the last one where my offer has finally been accepted. It was on for 270 and I offered 287. Had I bought it 2 years ago, I would have paid about 240. Yes, it's gutting but I just have to suck it up or remain renting forever. These things happen.
My point is that no chance in hell would I have got anywhere had I offered under. Asking price was the minimum starting point and on every single house I bid on, there were at least 5 others, on one occasion 16. If the house is decent, it's really not the market to be asking for discounts.

You could give reasons but at the end of the day the seller won’t care. All depends on how long it’s been on the market for and what comparable properties go for, or whether they’re prepared to wait to get asking. I’d be wary of relying on prices in October though as many places may have increased since then- I’d look at what else is available (or under offer) now for the same price.