To offer 10% under asking price

[TurquoiseDress]

So we’ve been on the market for several weeks now with our 2 bedroom split level maisonette in SE London zone 5.

We’re on a well known estate agents, price is OIEO £400,000

The best offer we’ve had so far is 11% under asking price (we’ve had 3 offers). It’s not enough to enable us to make an offer on the 2 houses we’re interested in; now just seen they’ve both gone under offer.

The other day we viewed a 3 bed semi on for £625,000 which was nice but on a busy/congested road which put us off a bit.

This house is on with the same agent as us, they’re pushing us to make an offer.

It’s been on the market several weeks too, had a price reduction. We’re wondering whether to offer 10% under asking to reflect the ‘reduction’ applied to ours.

The agent seemed to indicate that the seller would need to accept a reduction.

Does this sound reasonable? If we offered £562,500 that’s 90% of asking price.

Are other areas experiencing something similar?
Or are sellers getting the asking prices they want? Thank you

It’s in all the papers, just have a search. Mortgages are 6% now. If sellers actually want to sell and aren’t kite flying then they have to accept that offers will be lower.
Shoot your shot, if they say no they say no.

In London too - 10% is pretty standard as a starting point I think.

So you won't accept 10% under but you want to make a 10% under offer to someone else despite you being unattractive buyers who aren't even under offer. Of course you can offer what you want but it sounds like you maybe need to be a bit more realistic about your asking price and get a buyer before offering on other places.

The point of me asking is that we would be prepared to accept 10% under asking if our onward purchase came down in price too...that's pretty much what the agents have said to us, people need to accept lower offers 'up the chain'

As it stands we can't afford to accept 10% drop and then pay just under/asking price on a 3 bed

But you will be in a much stronger position to make an offer if you have a buyer. Why would a seller entertain you at the moment?

Yes this is precisely what we're thinking

Our agents had been talking everything up back at Easter but now they're saying everyone needs to take a reduction, if not getting the price they want

I wouldn’t trust the estate agents too much tbh. They want a sale and a lower amount as their percentage is still better than nothing, especially as they’ll get two lots of fees if both deals go through

Yes I know this is our underlying feeling.

Apparently the house has had interest but only a couple of offers which were rejected

Ive just bought a house for £150k that was originally listed for £189k so % wise it’s a massive reduction!
When I made the offer it had come down to £159k though.

I think your estate agent will be keen to get through two sales, tbh, and 10%+ off asking is just where the market is right now.

Not really, reports today are that 15% of sales are coming in at 10% under asking. Not exactly the whole market.

Where about are you?

Definitely not London if you got a house for that price!

Yes the agent will get the commission whether the final price is 5 10 or 15% under asking price!

Take this particular EA out of your mind and ask yourself what you would do if they weren't involved.

Because I think they are using you as a pawn. Chains are far easier to manage if vendors are both buying and selling through them. If your 10% is rejected, I think they'll just find another way to manipulate you into getting what they want.

Yes I did feel a bit this way when speaking with them, it does make it easier for them to manipulate buyers/sellers if they are with them

How long was the expensive house on the market before it was reduced, what was old price and what is new price?

Tbh I find it quite distasteful that they are telling you expensive house will have to have a reduction. Their job is also trying to get the best possible price for expensive house, they shouldn't be saying things like that to you. Is that what they are also telling people viewing your house? That you will HAVE to take a reduction?

No. They should just be putting offers forward and letting vendors decide. It's literally their job to do that.

At the end of the day, a house is only worth what someone will pay for it. If you like the house, make an offer. They can say no 🤷🏻‍♀️ so be accepting of the fact you may not get it.

Do it. We did and got a brilliant price as the seller was keen to sell ASAP due to a last minute sale falling through and we were no chain.

You don't know unless you ask. Best of luck

But you will be in a much stronger position to make an offer if you have a buyer. Why would a seller entertain you at the moment?

Well yes, but we could call our agents in the morning and accept the best offer of 10% under asking price.

So then- Ta da!

We're under offer and can be taken more seriously...and then we would make an offer 10% under asking on the 3 bed.

I've started this thread to gauge whether 10% under is outrageous or fair enough...I suppose my answer partly is in the fact we've received offers for 10% and more under asking

No, 10% under is not outrageous. It's sensible.

Which you haven't accepted!

It isn't an outrageously low offer in the current market. They may say a flat no, may ask you to meet in the middle somewhere. You won't know unless you ask.
We offered 4% under on a flat that has been on the market since March and vendor said no - which he is perfectly entitled to. But we weren't prepared to go any higher in current market so keeping on looking.

Ok so let's say we ACCEPT the offer of 10% under asking price (this would involve calling our agent and instructing them to accept the offer)

We would then look to get that sort of reduction on our onward purchase, because if not, we're screwed both ends- having to accept a significant reduction on our property and not having a commensurate reduction on the onward purchase

The reason why we would need a reduction is that we'd have to make up the difference by increasing our mortgage even more...which in the current climate, is nothing short of madness!

Thankfully we're in a situation where we live in a lovely area, children go to a great school a short walk away...we would like to have more space (increase from 2 to 3 bed) but ultimately don't NEED to move

If we go with our offer of 10% under asking and cannot find anything suitable/affordable then we'll just stay out here

Local estate agents valued our property for £525,000 - £575,000, we agreed to put on the market for £550,000. For the first three months, we received offers £430000, £450,000, £475,000 and £500,000. We were under pressure to reduce price as estate agents now say the market condition has changed, forgetting they were the one who had valued and advised the asking price a couple of months earlier.

We rejected all offers, made it clear to estate agents that absolutely no offer below asking price would be considered. Now we received an offer at asking price.

This is not an advice, just our experience.