Making an offer- How cheeky can we be?

[Greenlife1]

We have found a house on a housing estate we like. It is on for what I would say is more than it is worth (everything is at the moment though). I know that probably just sounds like we just want it cheaper but I'll explain! Our family member sold their house on the same estate for a bit less than what this vendor is asking for theirs, this was at the height of property selling like hot cakes. Family members house was much bigger. It had an extra bathroom and reception room. This one has a bigger garden but much smaller garage. Family members one was immaculate whereas this one does not look cared for as well. When bought off plan Family members one was approx 50k more than this one.

How should we proceed? The area is popular and choice is lacking. We like it enough to buy but I'd probably love it more if I didn't have the other one to compare with!

We are cash buyers chain free- how cheeky can we be?!

As someone who refused a cheeky offer 2 years ago, I would ask that the prospective buyers have to produce proof they can afford the going rate or asking price of a property, like I had to, I had to show a bank statement to the agents of the property I bought. Speculators are looking at middle priced housing, looking for a bargain, when they should be looking at what they can afford.

I commented above already but just to give further update.

I started house hunting two weeks ago. One estate agent gave me a brochure for a house I did not have time to view on Saturday that featured the asking price.

I emailed them today to say I would like to view this particular house next Saturday.

It is a lovely 2 bed Victorian house with a big garden in a lovely, safe town that just needs a little bit of cosmetic updating.

The agent today told me the house has now been reduced by £15,000.

This is why I am saying many sellers are going to have to be very realistic from now on.

Some of the houses I saw last Saturday had had offers that had been withdrawn recently because the buyers could not get a mortgage or were spooked by higher rates. Others were buy to lets that the owners now really wanted to sell again because of increased mortgage rates or worries tenants would not pay the rent. One of them had to go to court to evict his tenants and had lost his previous buyer because of it.

This is what is happening in many places.

I am not saying every seller will face the same issues but this is the experience I am having as a buyer.

It is no longer a seller's market everywhere.

Offer something low to see. It might be refused or you can negotiate.

Any offer within reason is better than none and you can move quickly which is a huge bonus.

If they refuse, move on

Definitely make a lower offer if you think the property was over-priced.

There is definitely something happening to the market right now in some places.

This morning I got an email from an estate agent about yet another property I saw last week, which I actually really liked and was considering making an offer on, and it has now been reduced from £250,000 to £225,000.

Several years ago, we sold our house. The asking price was £425 k. An offer was made at 385k, which we rejected. They came back with 395k, then £405k and then £415k. We settled at £420k, plus washing machine and tumble dryer. We had them in the new house anyway, so no loss.

I was definitely insulted by the first offer and told the EA. They obviously wanted the house because the subsequent offers were quick. I would have preferred another buyer, but they were in a good position.

I would go so low as to be insulting, but you could try to negotiate. I think though, that your knowledge of the other house is colouring your opinion a bit.

It's a business transaction I have no idea why people get so offended. You are the one that's going to have to make payments for years so sounds sensible to get the best price you can. It's not personal I've never been offended when people chance their arm and make an offer.

You’ve got to find a price that isn’t offensive. When we were selling one person just offered too low initially then tried to work his way up in 1k increments. We just couldn’t take him seriously and filled up under time waster in the end.

Talk to the EA, find out that situation. If they’ve found a proceedable property they’re much more likely to be open to a cheeky offer than someone who fancied moving but is also pretty happy to stay.

I agree, in reality, that it's a business transaction but lots of people see the sale (value) of their home as more personal. Also, even if you discount that attachment, few people have the resources to pay legal expenses / searches for their onward purchase only to waste that money when they're forced to pull out when their own buyer messes them about / wants to knock down the price close to completion.

If you're seen by a seller as a "player" / not a serious buyer by making a low / offensive offer, you risk the seller being worried you'll cost them more in the long run & not having anything more to do with you even if you try to increase your offer later.

10% below is reasonable. But supply is what affects value as much as anything.
Market still brisk here (SW London), though for the first time in months I'm getting emails from agents (I bought last summer so still on a few lists).

Good luck. When negotiating, imagine it's you selling the house in five/ten years and think how you would respond to your offer.

The figures quoted on here are ridiculous. No-one is likely to accept £450k for a house on at £600k (25% below asking as some people are suggesting). Even 10% under would be £540k.

I've just read an article saying that 5% is reasonable.

Agree with this 100%. "Offended by offer". Grow up.They are offering to a buy a product not trying to sleep with your husband.

I’m interested in a house which has recently come on for sale in need of a complete refurbishment (it’s unliveable). The price at which it’s been advertised at is at the level of similar properties in good condition which do not require any work. Clearly, the house is overpriced, however if to factor in the refurb cost to bring the house in line with other properties currently on the market then the property I’m interested in should be at £80-100k less! In my opinion it would be a reasonable offer but I know if I were to offer £100k below the asking price, I would get rejected.

We are currently selling. I would consider 25% less an affront and there is no way I would sell to you at all, even if you made a better offer subsequently..

that 25% in 6 months time may look like a good offer

The question was how cheeky? Does that adjective not suggest a seller’s reaction.

@Snugglemonkey
''We are currently selling. I would consider 25% less an affront and there is no way I would sell to you at all, even if you made a better offer subsequently..''

As people have commented already this is a business transaction for the buyer. It has nothing to do with how you feel about the property and it is not about making sure you don't feel offended...

Of course the buyer is going to look at a property and make their own assessment as to how much they would pay for it, based on the condition, location and so on.

Buyers who are not in a chain or don't need a huge mortgage also realise they are in a better position and will expect to get a better deal for it because the sale is less like to fail and will complete much faster.

Many estate agents tend to over-value homes to get the property on their books and sellers will try to get as much as they can from the transaction. it is perfectly normal for a buyer to offer a more realistic price.

You don't have to accept an offer but equally buyers can choose to offer what they think your house is worth and move on to another property if it is not accepted.

As I mentioned above I saw a house at £250,000 last week and was considering an offer at £240,000. The agent emailed even before I had a chance to do that to say it was now reduced to £225,000. The initial valuation was way too optimistic and there is no way I was going to pay £250,000 for it because the house, although lovely, needs updating, including a new bathroom.

Surely a house is only worth what you’re willing to pay for it. Not what the seller thinks it’s worth?

How quickly are houses moving on that estate? Where I live now, housing estate houses are sticking like mud and constantly being reduced. Period / character properties are still going fairly quickly. Only you know the market where you live.

@Lastwhisper ..nailed it...a house is only worth what someone is willing to pay.
So I don't get the "cheeky" adjective at all..if the prospective buyer, having done some due diligence and research concludes they would pay xyz for that house,then what is cheeky about that.
It's a business deal after all.

The difficulty with all of this is that you have no idea, as a buyer, what the seller's position is. You don't know (for certain) whether the seller has taken account of some work that may need doing on the property, or conversely whether for instance they're relocating with a job / getting divorced or all manner of other reasons why they may be moving. You also have no idea whether the seller is someone who sees the sale as a business transaction, or whether they're much more emotionally attached & will be offended by a low offer. Even if you think you have a handle on that, you cannot know what other potential buyers may perceive as the value and therefore what you're competing against.

All you can do is offer what you think its worth - none of this 10% under / 25% under or 5% over or whatever is deemed to be "the rule". Do your research, offer what you'd be prepared to pay and if its not accepted, walk away. There's no need for game playing.

Here we have the offers system. It means what it says. You would expect at least 10% over. The offer we put in on the house we are buying is 20% over, because that is what you need to do if you want it. An offer 25% under would represent a total crash in the market.

OMG!!! someone needs to take the credit away from you!

you sound like an alcoholic in a free bar

That is the system here. Houses are out in the market below home report value, but ask for offers over. It is expected that you offer at least the home report value. If you offer over the home report value, you need cash to make up the difference between what mortgage you can get (usually home report value minus expected deposit) and the offer price.

We are buying outright and not dependent on credit at all, so your concern is unnecessary.