Offer 30% below asking

[CheekyFakers]

A number of valuations all arrived at the same marketing price.

Healthy number of viewings to begin with (though feedback notes didn’t quite match who came through the door, numbers wise) but no offers. To be fair, this was right in the mini-budget aftermath.

After pressing the agent, one chap came to view. Took a few days to come back with an offer 30% below asking on a £1.7m property.

Is this pure CFery? Is the market that bad? Or have agents been known to send associates round to view and make guaranteed ‘no, thanks’ offers?

If it’s pure CFery, I’ll be making a note to try this myself!

That’s about how much less the bank will lend for the same budget following interest rate rise. Then it’s the usual widening gap between sellers and buyers in a changing market. Buyers think sellers are delusional, sellers look at recent transactions for benchmark.

Surely it is only worth what somebody is willing to pay. You do not have to accept an offer 30% below valuation, however if that is your only offer what does that tell you?

When did you get it valued?

Early August. A lot has happened since, it’s true!

I would take it moderately seriously with some sort of counter offer, I genuinely think house prices might slowly reduce by 20% so it’s not that far off.

A 10% below offer I might consider. 30% is bloody ridiculous.

It all comes down to though are you likely to be able to knock 30% off your ongoing purchase, if so it literally makes no difference to you it’s just Less stamp duty to pay and less interest for the banks to lap up.

Is it a terrace in london or a mansion in sussex?
Is it one of those london terrace houses which was bought for 500k 10 years ago or a truly lovely detached villa? Type of house and location might say whether this is sensible correcion or not? Anyway is up to you if you want to sell at any price or not ?

This was bought in 2003 for 600k for example
www.rightmove.co.uk/properties/127258145#/?channel=RES_BUY
They adking 1.6

1.2 would still be double

30% below asking price, unless you want a quick sale, I’d walk away.

If you are willing to do this they might increase the offer if they really like the house.

I sold a flat in 2019 and it was on the market for about 8 months. The house I then bought was as well, this seems to have been normal at the time/ place. Your property doesn’t seem to have been on the market for long.

Best of luck regardless ☺️

Are you buying something? Has the price of that come down 30% or anywhere near?

Tell them you will take 10% under marketed price. Final offer. They are trying a cheeky offer as some do just to see how desperate you are to sell. Some people are in dire straits with massive mortgages jumping way beyond what they can afford and they are hoping you are one of them. If you are not see what happens next. If they want the property and can do the mortgage they will go with that or counter offer. Make it clear you don't need to urgently sell if you are in that position. If they come back with 15% counter offer with 12% if you are sure it's been valued correctly and you fell like going that low. Don't be steamrollered into stupid offers if you sent desperate to sell. Sadly some people will have no choice so it's a buyer's market and there will be a lot more cheeky offers in the coming weeks. Good luck 💐

aren't ...not sent 😁

The old adage, something is only worth what someone is willing to pay.

If you don't need to move and can stay there for the next 7-10, years then i would as 30% of asking prices today will be come the norm by next spring

Meh, it's an offer, you can take it or leave it.

Never understood this emotional response / CF type waffle.

The value of a house is simply the price a buyer and a seller agree to.
That's it.

If someone thinks you're house it worth 30% less than you're asking, they can offer it. They're buying a house, not building a long lasting commercial relationship with you! You're either entering negotiations together, or you're not.

exactly

If that's the only offer you got, that suggests that it's what the market is willing to pay.

Who is the CF, you for requesting far more than the market is willing to pay or the market for not delivering on your request ?

There are two sides to this potential CFuckery.

Which are several people have pointed out is fine providing everybody is reducing by 30% but they aren’t. So it will just be a Mexican stand-off until something changes one way or the other.

Anyone who doesn't offer under asking in this market must be mad imo.

Which are several people have pointed out is fine providing everybody is reducing by 30% but they aren’t

But not everywhere drops or rises in value exactly the same. A large expensive house in this period of higher rates & increased energy bills will be less desirable than a : bed semi that appeals to families & downsizers. Plus location makes a difference

Well in that case I would ignore the valuation. IMO anything before the mini budget doesn't apply anymore. I know prices were too high before but the speed at which the market has changed is surprising.

3 not :

Offers are generally a bit slower to come in for higher value properties. If you’re still getting viewings that’s a good sign unless they’re just window shoppers.

i recently offered 15% under asking on a 1.3m property which has been on the market for 4 and half years…..

the 15% exceeded the price per sqft for the area and closely matched the housing price index for the post code.

they rejected advising they had an offer 2% under in May which they rejected.

house across the road sold for 930k in 2021 which whilst needing a new kitchen and bathrooms, was bigger and had a south facing garden and garage.

this house has been marketed by 4 estate agents and must of been 30% or more overvalued when it originally went to market..

guess the vendor is still waiting for the market to reach them which looks less likely now.

i would be asking for their reasoning for the low offer and seeing how it matches the local area.
Some seriously overvalued properties in my area that are sitting for years. I think estate agents must think it brings them business but I discounted using agents with properties that I perceived as overvalued on their books. It didn’t fill me with confidence they'd value my house correctly

Is this in London? We are looking to buy in South West London and to be honest I am seeing strong price reduction in this price bracket. We are told there are less buyers due to mortgage rates hikes and raise in cost of living combo. People are just not moving.

I hope you get some answers soon though as -30% is quite a drop, and I would suggest you request a new valuation as if you only have one offer it is likely overpriced now unfortunately.

I'm in SW London & seeing prime houses reduced by 100k plus after a month. I don't see us back to interest rates of 1/2% for decades.

This is what we are seeing... and is the reason we have not offered yet as prices keep dropping...