How much under asking price

[FigandHoney]

What percentage of an offer under asking price would you accept in the current market?
If your property had been on the market for 3 weeks, with a handful of viewings?

We have just put our house up for 300k (valuation from 4 estate agents with one saying 300-310k). We'd accept 290k easily, depending on our onward purchase we'd probably go as low as 280k but it wouldn't be an immediate yes as we'd need to crunch some numbers on the loan-to-value of our next mortgage (it's making a huge difference at the moment).

If you are getting viewings then there is interest. Have you had no offers?

Depends how quick you need to sell. But I wouldn't be accepting anything over 5-10% off if you feel its fairly priced. If you priced it ambitiously to start with then probably more than 10%

@Alexalee We only has one offer so far and it was 8% underasking. 10% under what our neighbours house sold in July.
Our house has been completely done up and is move in ready. Literally nothing to do. We are even living our range cooker, dishwasher, washing nachine and fridge. All from high quality well known brands.
So I feel we are fairly priced even if the market has slowed down. Wanting to reject the offer, but nonetheless a bit worried if we do.

@superdupernova Thank you. Your figures are helpful.

''@FigandHoney · Today 08:18
@Alexalee We only has one offer so far and it was 8% underasking. 10% under what our neighbours house sold in July.''

The market is different now. The offer you got sounds reasonable to me.

Can you get the agent to negotiate them up a bit? Or is that their best and final. I would say in this market that is a fair offer tbh. Our dd has just accepted an offer on her house which has been completely refurbished at about 9% under asking.

The market really is dead and if you don't need to sell then I wouldn't right now. For a property that all the agents said would fly and need an open day, she got 3 viewings in 6 weeks and only the 1 person offered. This is a leafy surrey village too

I'm afraid we can't possibly answer op because we don't know if the asking price is a fair reflection of todays market.

A house down the road from me has been on at about double what it's worth for example.

The market has really slowed since July. 8% under is probably reasonable, before the mad covid buying boom 10% under was pretty par for the course and what most people who expect

Isn't the asking price reflecting the current market?

Speak with your estate agents too to see what they suggest. Obviously they want you to sell, but they work on commission.

@Artygirlghost We realise that the market has slowed down. However the predictions say a potential reduction of 10% in a year or 2. Not at this point. And so far average uk houseprices haven't even dropped by 1%

@Alexalee Thing is they originally offered 10k more, which we accepted. The EA said they were ready to go with a mortgage promise and everything ready. Than a day after, when the EA asked fir proof of funds Mortgage promise, etc, they dropped their offer, stating that the bank had moved the goal post.
So it's partly the back and forth that is making us hesitate . When we bought our offer on our house, we got the mortgage promise right before to ensure we knew exactly what we could afford.

@arethereanyleftatall Yes. I understand it is a difficult question to snswer without more information. What I can say is that we had 5 Estate agents around, who all valued the house at exactly the same amount. All online calculators also value our house at yhe same value or more

@Lastqueenofscotland2 See it is difficult to know what is normal / acceptable in the current market. That is why I was hoping for some recent experiences.
Our family and friends are all telling us not to accept.

@makenomistake We certainly asked the estate agents to value it fairly and not over value it.
Thing is for the EA the 8% doesn't make much of a difference in commission. So there isn't much incentive for them not to recommend taking the offer. Better the bird in the hand and all that. And means they have no more expenses in advertising and so.
So don't think EA opinion is necessarily unbiased

To be honest that 10% drop prediction is rubbish. They are the same forecasters who predicted huge falls after brexit and covid. Prices have probably doubled in many places since then.

Mortgage repayments for the same amount of money will cost a person 50% more than 6 months ago, so purchasing power has dropped by over 30% if affordability remains the same

At the end of the day if that's bee the only offer then that is all the market is willing yo pay atm.

Although prices haven’t technically dropped much yet, buyers will obviously reflect the predictions in their offers. It’s a bit like when a new rail line is built, prices go up in anticipation years before it’s complete. Same thing is happening with reductions now and they are becoming a self-fulfilling prophecy.

You could ask them to leave the offer on the table and continue marketing for a few more weeks.

I'd hold out. Three weeks isn't long. However the market always slows in the run up to the holidays, regardless of what else is going on. But picks up pretty quick in the New Year. If you can wait do so.
I agree with what you say about estate agents - £10,000 difference in sale price is not much to them.

''@FigandHoney We realise that the market has slowed down. However the predictions say a potential reduction of 10% in a year or 2. Not at this point. And so far average uk houseprices haven't even dropped by 1%''

I am afraid that the market already has dropped. As a buyer I can tell you that I am seeing houses being reduced across the board in the areas I am interested in (South East) and estate agents desperately chasing buyers.

It takes a while for the house prices/house sales stats to catch up (stats are based on prices that were agreed a few months ago before the market really dipped and are now completing) but the reality is that most people won't offer you the asking price in this market and 10% under is a reasonable offer.

As you are likely to find out.

It depends what you're doing next. Do you need the asking price for an onward purchase?

We sold in January for £5k over asking and bought for £50k under.

It depends how soon you want to move and what your next plans are
What is your price per m or per sq ft compared to other houses that are for sale?

You can try to hold out for 5% under offer but then they may drop their price again before exchange

I’m now shopping for a new home, and it would need to be an absolutely perfect property for me to offer 90% of current asking.

Don't want to depress you, but I would take 8% off at the moment. I've been keeping my eye on a beautiful house near me (a girl can dream) which was listed at £1.25m back in the summer and is now down to £995k, which is what it sold for in 2019. It would have got £1.25m a year ago. We're on Dartmoor, and prices went up very fast, but looking at all the reductions on RM, they are coming down again pretty sharpish.

They sound keen to have the house if they had made an offer before things changed but would counter offer with one of your own. Split the difference then it would be about 4% under original offer. Thing is the market isn't going to get better for sellers any time soon and until you close the deal they have the advantage of viewing more houses coming up with reduced prices.

I would take the offer if they are proceedable and can move quickly. If you are living high quality stuff you could maybe negotiate a little more for their inclusion? I did this one for new carpets and a bit of new furniture.

We are seeing reductions all the time and some I have liked have insisted that the house is worth the price because EAs told them so. But as always your home is only worth what someone will pay you for it.

Mine is up for £400k and has been on the market for 2 weeks, handful of viewings also. I wouldn't take less than £395k at this point as we aren't desperate to sell. Our house is priced reasonably for the area and is actually the cheapest available to the tune of £30k, specifically because we asked the estate agent to price it appropriately. Had 3 separate quotes that all valued the same.

I appreciate that the market may drop further into the new year, but if someone is buying here, now, today, then that's the price that needs to be paid imo.

Mine is 200k and after 3 weeks there's been 3 viewings and no offers. Dropping to 295 soon.

at least 15%. all prices are over inflated.

It took me 6 months to find a decent buyer in the end and I ended up selling for only 5k under asking.

Viewing dont necessarily translate to people being interested in buying though.

We viewed a house, decently priced (lower end of the areas prices but within normal range) in a good area so was getting viewings. However upon seeing in person an older bachelor who smokes 60 a day has lived there for 40 years and the place in SATURATED in nicotine and dirt.

Photos didn't show the dirt and cigarette damage. Its still on the market because the whole thing will need completely gutting.

Another house we viewed turned out to have really, really bad traffic noise. Once again photo 'had potential' but reality was an instant 'no'.