How low is too low when it comes to making an offer?

[Amtheyest17]

Hello,

Just wondering when making an offer how low is too low? I only ask as I thought it wasn’t really the done thing to go in any lower than a couple of grand in certain scenarios but my friend just said she had, had an offer £80k under asking.

Understand that quite often it won’t be accepted but at the moment there are no houses coming up within our budget but even going up £30k-£50k the market opens up a bit and these places have been sitting on the market for a while so wondering if it’s worth viewing and if we like something making an offer within our budget and within reason. There is one property that 100% is priced way too high and should be more in line with our budget - our offer would be £60k under asking if we liked it.

Conscious that although this would be allowed might not be a great thing to do and sellers might see it as insulting/wasting their time. Have also had a friend who lucked out with this approach as sellers were desperate to move to accepted £30k under asking.

I wouldn't be offended on an offer of 475k on a house priced at 525k.

Obviously they will be hoping to get about 500k but still, it's not an insulting offer.

You see, I don't understand how you can jump to those conclusions. If I put a property on at £525k, I'd be looking to get £525k or very close to that. Why would you assume that its "obvious" that the sellers will be looking to get £500k?

If you think it's already overpriced, work out what price you think it should be - then start 5% to 10% lower would be my strategy. Prices are likley to fall a good 10% or more according to the government so don't put yourself in the position of risking negative equity unless you have decided its a property you simply must have.

It's so subjective and weird to be honest! Friends recently sold; they accepted an offer 10k under initially which fell through and then sold for £12k more!

@caringcarer I Googled housepricessold but couldn't find anything, is it a website? I would love to look at this. Do you have a link? Thanks.

@pemba I think you can look at mouseprice or zooplankton?

zoopla 🤣

@Boltonb thanks, zooplankton might have been interesting though!

I said about 500k.

Is 525k (or very close to it) not about 500k?

Interesting thread. We are under offer with a cash buyer and I’ve now come to the conclusion I’m just going to view anything I like the look of (within reason obviously, but over budget) and if we want to make an offer then we can and if they tell us to F off so what. We are proceedable and so might as well make the most of that position.

Yes you can piss people off but for me, just offer what you think it’s worth, what have you got to lose?

Exactly, I agree with this strategy.

When you're selling a property, even a low offer is better than no offers so you never know, people may be grateful even to get an offer below what they were hoping for, especially from people in a good position.

No, clearly £500k is £25k less than £525k.

If you can justify costs of £25k for unknown reasons (e.g. once you have a survey back) or you've looked at neighbouring / similar properties that have sold for £500k, fair enough. It's just the assumptions that I challenge - that every seller has "obviously" overpriced their property and expects to accept big deductions.

Also having recently just gone under offer you have to be realistic as a seller too. Estate agents price high because (1) they want the work and (2) they’re still pricing things as if the market is still going up and up, but we all know it isn’t, and a lot of the forecasts are suggesting 10% falls, so if someone comes along and offers me that, they’re not taking the piss, they’re reflecting the market.

It’s no longer a sellers market, and some sellers have got to get real.

Well we see things differently. I do think about 500k covers offers up to 525k. But I think you're being naïve if you think most sellers won't accept a small deduction of say 5% in today's property market. Maybe you're not currently on the market yourself or don't follow it too closely but it is very normal at the moment for people to make offers below asking price.

@Pemba it's nethouseprices.com

Thank you @caringcarer

Absolutely, I agree we see things differently - thats exactly my point - if you want to make an offer well below the asking price, thats absolutely your perogative. My point is that I wouldn't entertain that (also my perogative) because I don't believe in a "norm" or the myth that every seller over prices their property expecting to be negotiated so far down. Yes, maybe a few grand but not by £25k on a £500k house. It doesn't make me naive, just that I have a different viewpoint

75k on 120k house 30 years ago

The back story - it was in a era of falling prices and the house had been.on the market two years with no reductions.

The surveyor valued it a little higher than 75k so we were in the right ballpark

So, given we are in an unstable market (albeit not that bad currently) do consider the background to the properties asking price when offering

It's harder to draw a reduced deal on a house newly marketed.

You can only base what's reasonable on today's prices. You can't expect sellers to accept below market values because the market may fall in future, anymore than you'd be prepared to pay 20% above asking price if prices were forecast to rise (not if you were sensible, anyway!). You buy the asset as is, at current prices. Of course anybody's free to try to negotiate and if the house is overpriced that's fair but if it's priced reasonably benchmarked against similar properties sold recently then don't be surprised when they do not accept and also won't consider any raised offer from you.

Oh to add that house was listed for 600 before. Not sure when exactly. Long time ago. And it def does not cost that. 525 is much closer to reality. There is a house next to it which is a total wreck and it is advertised for 495. Again, it doesn't cost that but not helpful for us.
We also know it is a divorce which makes it either easier or more complicated. On the one hand sellers might be desperate to say their goodbyes on the other both might need to look for somewhere to buy and with less money they might not be able to find where to move.

I wish there were strategic consultants for these deals

Ah because when the £575k went on the market, we had just started looking and we had just offered on a £550k which was same style & area (tad smaller) better road etc but the condition difference was insane, £550k was ready to move in. So at the time something that was priced technically over our budget for something that needed so much work seemed ridiculous so didn’t bother going to view. By the time we’ve come to the realisation that the £550k was basically a unicorn and there is nothing else we now would have been interested in the £575k, which has sold. All that said, it did need a lot of work and we wouldn’t have had the money to do it. The £625k is bigger then the £550k but needs more work, it’s in a much worse location though!

It depends if you are actually offering what you think it's worth or if it's all you can afford though.

If you are making a really low ball offer, do everyone a favour and run it past the agent first. I wouldn't be offended by a really low offer, but I would be pissed off if I'd spent ages getting the house viewing ready and possibly had to vacate with children in tow, just for you to view a house you couldn't afford.

Chow is confused if they think that 20% is the norm. I am on the fringes of property and I have NEVER heard this.

We sold our house 6 years ago and it had been on for 2 weeks. Some twat came along and offered 20% below. We had already priced to sell (I definitely wanted to move!) so myself and the EA knew he was just messing around. Literally the next day we got 2% below asking price. He then came back and said that he woud actually match the new price. I told the EA to tell him to jog on. Even if we hadnt have had a proper offer so soon I would have discounted him completely as a time waster and deluded.

20% is almost distressed condition.

Also, not everyone is desperate to move. Some will just shug and 'wait' or take the house off the market and leave it until the market picks up.

Hello everyone . We are sold stc and has viewed this property , within budget , nice area ( one of nicest area in our town). Could I please get your thoughts as we don’t know how much to offer. We like character properties ,but they can be expensive . This one is a possibility for us .thank you in advance .
https://www.rightmove.co.uk/properties/146557676

I think people always free to offer low and also sellers are free to refuse that. The lower you go the more likely the refusal. With no arbitrary % I completely agree. You might want to check how much they bought for as it's extremely unlikely they will be desperate enough to make a loss...