Cheeky offer on a house. How low?

[TeaChocKitKat]

How much lower than the asking price can you offer without looking really cheeky? We are chain free and keen to move quickly. Have seen a lovely house that is also chain free but it looks over priced (and is over our budget). We really love it so want to make an offer (allowing for wriggle room) so dont know how low to start whilst being taken seriously.

Depends how long it's been on the market and if it's already been reduced.Maximum 10% below I would say.

How long has it been on the market and what is the market like where you are.

If it's new to the market and you're in one of the many parts of the country where stuff is flying then realistically it's likely to sell for the asking price or higher.

If it's been on a while then you could try a lower offer but it's unlikely they will accept much below asking price unless they are desperate to sell.

Stuff is flying but the asking price is £30k to £40k above recent sold prices on the same street. Its worth what people are prepared to pay though... ! We were thinking of making an offer around 10% under the asking price and hoping for the best.

If the sold price is £1m snd it’s £40,000 anime, that’s not much. If sold prices are £200,000 and this is £240,000 then that’s a big hike and worth putting in £220,000. If it’s the over £1m scenario, then they won’t drop 10% I would have thought.

This totally depends on the market in the area. In our area there is under supply and houses go for above the asking price

We stared at £50k under. Agreed on £35k lower. (310k house) been on the market long time and strange layout / 3 massive bedrooms were converting it to 4 large doubles Instead

It’s all relative and dependant on area. In central London the market is sluggish and we accepted an offer 10% below out original price

How long has it been on the market?

To answer some of your questions. It has only just come onto the market. The going rate for a house like that would be between about £230k and £260k. The advert says offers in the region of £300k.

When you say “going rate” is that what you can see that similar houses have sold at the Land Registry? If so, prices have gone up in most places over past few months so I wouldn’t get too carried say. I also don’t think they’ll accept a low offer if it had only just come on!

If it's only just gone on the market then no, they are highly unlikely to accept a low offer. Regardless of how "cheeky" it is..

How long ago were the previous comparable sales? The market round here is still crazy. With many properties being sold before making it onto rightmove, and often over the asking price. It sounds like your area is similar, so I can't see the sellers accepting a cheeky offer.

I’ve been looking for months and there’s a few very overpriced properties that have been hanging around in an otherwise bonkers market. I’ve offered asking on a couple (I’m desperate to move and don’t want to lose my buyers) and been turned down as they are expecting over asking. It’s bonkers.

I think a lot of people are chancing their arm to see if they can get a small fortune for their property and if they do they will
move, if not they’re not fussed. That’s the impression I get anyway.

Depends on the reasons for the sale, whether it's value for money and the position of the others who may offer.

I know, its well overpriced. Its a vacant at the moment but I dunno what the vendors position is. My £230/260 estimate factors in the recent increases. A year ago, it would have sold for around the £200k mark.

We offered 15% below the for sale price on our current house. The house had been on the market for over a year and clearly over priced. It was in a bit of a state and needed a really good clean and decorating plus new carpets. We were chain free and already in rented accommodation so had time to get the place gutted and done up again before we needed to move in. Seller did not accept our first offer so we went a little higher but as a final offer - any more and we would walk away and offer on an alternative that we were also considering.

Offer what you think it is worth to you. It doesn't matter if that is 20% below the market price. At the end of the day the "right" price is what they are prepared to take and you are prepared to pay.

So you are thinking of £270k? I think that’s ok as an opening offer. Are you prepared to increase if it is declined?

I was talking to an estate agent near us who said that he would get up to 30 people booking onto an open day for a house new to the market, and expect between 6 to 10 offers on the table by Monday, and that property was averaging 19% above market price at sale.

4 houses have gone onto the market in the last 10 days in my immediate area. They have all sold almost immediately. One sold for 35% than they paid for it 2 years ago.

You're absolutely within your rights to make a 'cheeky offer' but I would absolutely expect you to be knocked back in the current market.

@TeaChocKitKat - have you actually viewed the house or just noticed it on Rightmove?

If you haven't yet viewed, arrange a viewing and see what you think. Ask the agent about the buyer's position and, if asked, give feedback that you like (love) the property but feel it is priced too high compared to others. See what they say. The buyer may or may not be prepared to take an offer. Probably other potential buyers will notice if it is approx 20% over priced as you say it is. Even if someone offers 300K, it may well be down valued if they need a mortgage so no guarantee that they would achieve the higher price even if offered.

Some areas still seem to be flying but my area has definitely slowed with a lot more reductions. I was speaking to a friend who said the market has definitely slowed in her area too (prime commuting area in SE). Overall, therefore, if your area is still fast moving now, it is likely to slow soon and you therefore wouldn't want to over pay just now.

What's the market like in your area? House prices are rocketing in some areas - also does it have extras in comparison to other houses at that lower price bracket? Extra rooms like en suites, downstairs loo, utility, bigger garden, loft conversion etc

Thanks all. Its really helpful to get some more takes on this. We saw an almost identical house last week which was the same age and layout for £260k. The £260k one had been slightly extended so had a much nicer kitchen and a utility room. It also had a much nicer bathroom, stunning original features, lovely shelving units built into the alcoves and fitted wardrobes. We are going to see the one on for £300k next week. It doesnt have a utility room, the kitchen isnt as nice, no original features (though we hope over time we could try and bring some of the old character back), a fairly scruffy bathroom and no fitted wardrobes. The £300k one is on a quieter street and has offroad parking. It is a nicer location but as the house itself is nowhere near as nice , i dont think its £40k nicer or am i being naive?

Why are you not offering on the nicer/cheaper one instead?

We saw an almost identical house last week which was the same age and layout for £260k.

JUst being nosy so feel free to ignore me but is there a reason you didn't buy the 260k house?

There was no off street parking and parking was a nightmare. No off street parking isnt a deal breaker but there was a bus stop right outside, the road was busy and we really struggled to find anywhere to park. It would have been perfect otherwise.