Negotiating price with a private seller

[BeforeISleep]

We're in touch with a private seller who seems keen to sell to us. The property is in a highly sought-after London area, where we have largely been priced out but are loath to leave. Seller's asking price is top of our budget and we would feel more comfortable about this big investment if we could get the price down by about 50k. The house is in good condition, but it's a 3-bed but with no room to expand to 4 (which is our ideal). Can we use this limitation as a plausible reason to offer a lower price? We'll have to put in a garden office instead, but that's not the same as having a fourth bedroom. We'll also need to have fitted wardrobes and shelving put in as there's otherwise no storage space in the house.

We don't want to sour the relationship by seeming cheeky or like we're trying to take advantage, so we do want to handle it delicately. I suspect that if this doesn't work out then we'll realistically have to look elsewhere and move away from a place we really love.

FTB, btw, so it's all very new to us and stressful!

You need to have a feel for the market price of the property compared to the price you offered. So look in local estate agents, local free newspapers, Zoopla & Rightmove etc. for nearby locations, similar properties etc. As a private seller he will be saving fees, I think around 2%.

You need to know this anyway if you are getting a mortgage, because your lender will base their mortgage offer on their own valuation.

If you are FTB and have your mortgage offer then you are in a good position to proceed, which may be attractive to your seller.

Agree with looking at similar properties in the area and see what they are going for. It is a bit cheeky though to drop your offer based on wanting a four bed property for the price of a three. Having to add wardrobes etc is not the seller’s concern tbh.

Another piece of string question, as is often the case on this board. What is the asking price? What is last sold price of properties in the same area? How long have they been trying to sell it? How much are they saving in EA costs by selling privately? Do they live there now or is it an investment property?
Without more detail, we’d be guessing rather than giving an informed opinion.

When comparing similar sold properties check the price per sq ft or per sq m

It sound slide the price is already lower than others in the area as you say if you don't get this one you will have to move away... doubt they would want to take any money off for your future plans tbh

You could try but you say that you are more or less priced out of this area. If you lose this house you’re unlikely to get another one and will have to leave, so I don’t think you’re in the strongest negotiating position. Look at sold prices and if it’s way off, then you could try but otherwise I’d be careful. It’s not really the seller’s issue that you want a fourth bedroom and I doubt they’d lower the price for that.

It's not the sellers fault you're looking at houses that are too small!!

I'd tell you to piss off (nicely) ☺️

I also think they will tell you to nicely piss off and put it on the market. If prices have risen a lot as you are implying saying you are priced out then they will know there is likely to be a demand for it.

Trying to get them down at this point is possibly going to make them worry that you will look for excuses down the line to drop the price.

I had someone interested in a relative’s house when they put a card through the door. Having gone from saying they would pay estate agent valuation possibly higher they then started going on about the work which they knew about and the cost and whether they could afford it so I decided not to sell to them as I know it will be fine on the market and what we would save in estate agent fees we are likely to get back on the market.

They will be saving on estate agent commission so market value less 50% of estate agent commission is the best you can hope for else they may as well sell through an EA.

Remember that estate agents will have a pack of buyers ready to offer asking price if not more so unless they are paying the estate agents £50k there's no benefit to them to accept a lower offer.

£50 is a lot of money to most of us- what % of the purchase price are we talking?

£50K is a big price reduction.

What is your position; have you got a property to sell and mortgage AIP?

It’s a sellers market and it almost ticks all your boxes. I would offer very near or if not the asking price to secure the property.

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Negotiating price with a private seller12
Yesterday 17:13 BeforeISleep

We're in touch with a private seller who seems keen to sell to us. The property is in a highly sought-after London area, where we have largely been priced out but are loath to leave. Seller's asking price is top of our budget and we would feel more comfortable about this big investment if we could get the price down by about 50k. The house is in good condition, but it's a 3-bed but with no room to expand to 4 (which is our ideal). Can we use this limitation as a plausible reason to offer a lower price? We'll have to put in a garden office instead, but that's not the same as having a fourth bedroom. We'll also need to have fitted wardrobes and shelving put in as there's otherwise no storage space in the house.

We don't want to sour the relationship by seeming cheeky or like we're trying to take advantage, so we do want to handle it delicately. I suspect that if this doesn't work out then we'll realistically have to look elsewhere and move away from a place we really love.

FTB, btw, so it's all very new to us and stressful!
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Yesterday 17:41 filka

You need to have a feel for the market price of the property compared to the price you offered. So look in local estate agents, local free newspapers, Zoopla & Rightmove etc. for nearby locations, similar properties etc. As a private seller he will be saving fees, I think around 2%.

You need to know this anyway if you are getting a mortgage, because your lender will base their mortgage offer on their own valuation.

If you are FTB and have your mortgage offer then you are in a good position to proceed, which may be attractive to your seller.
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Yesterday 17:51 Finfintytint

Agree with looking at similar properties in the area and see what they are going for. It is a bit cheeky though to drop your offer based on wanting a four bed property for the price of a three. Having to add wardrobes etc is not the seller’s concern tbh.
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Yesterday 17:59 sst1234

Another piece of string question, as is often the case on this board. What is the asking price? What is last sold price of properties in the same area? How long have they been trying to sell it? How much are they saving in EA costs by selling privately? Do they live there now or is it an investment property?
Without more detail, we’d be guessing rather than giving an informed opinion.
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Yesterday 18:59 DonGray

When comparing similar sold properties check the price per sq ft or per sq m
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Yesterday 20:08 Alexalee

It sound slide the price is already lower than others in the area as you say if you don't get this one you will have to move away... doubt they would want to take any money off for your future plans tbh
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Today 06:41 Housinghelp321

You could try but you say that you are more or less priced out of this area. If you lose this house you’re unlikely to get another one and will have to leave, so I don’t think you’re in the strongest negotiating position. Look at sold prices and if it’s way off, then you could try but otherwise I’d be careful. It’s not really the seller’s issue that you want a fourth bedroom and I doubt they’d lower the price for that.
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Today 07:46 ChiswickFlo

It's not the sellers fault you're looking at houses that are too small!!

I'd tell you to piss off (nicely) ☺️“

This. You can’t afford what you want so expect him to take a hit? You are cheeky.

Sorry, all, no idea how I lifted that lot