What to offer for 'offers in the region of'

[Polarsimilarities]

For more info - house is a 3 bed detached with attached garage. Lovely house, ticks almost all our boxes (no dining room/extra room downstairs but we can convert garage eventually). It's very well decorated and we can move straight in (big draw for us with DC). The owners are desperate for a sale as they have to move by end October due to their circumstances.

It was listed at offers in the region of £305k beginning of July, reduced to OIRO £285k end of July and is now OIRO £270k - what would you offer?

We are thinking £240k, just under a 10% reduction on £270k. Online estimates value the house at £248k, and we don't think it's worth £270k. Estate agents around here haven't clocked on to the fact the housing market is changing and are still pricing houses at 2022 rates so nothing is selling!

Let me know what you would offer!

I think offer low. You can always go up. I suspect they'll see the first offer as a starting point anyway and will probably expect you have a higher offer if they reject.

They obviously listed it far too high at the start which is a mistake especially as they really need to sell. It seems the agent has been indiscreet telling you this because you can now have lots of bargaining power when combined with a falling market.
Offer what it is worth to you bearing in mind your individual circumstances. If 240k seems right, go for that. I would have a max figure in your head which may be 240k. Some people are managing to negotiate a lot off prices at the moment.

I’d phone the agent and have a bague conversation and see if they’ll leak info, eg say look we love X house and are ready to proceed asap, but we simply can’t afford it at it’s current price, do you have any sense from the seller of how open they are to offers as we don’t want to waste everyone’s time if they aren’t in the same ballpark as us?

They will try to get a figure out of you and you say you need to check with family etc.

Remember it is literally the agent’s job to persuade you to make an offer and to raise your offer.

But I was really shocked when I rang up about a house on for £550000 and said “do you think they’re open to offers” and the agent replied instantly “oh yes, they’d take 535 but no less than that.” I was like wtf this agent is terrible as I’d have happily paid £560 👀🤷‍♀️

If I really liked it I would offer 250k. Psychologically that’s a price I think would feel a lot better to them than 240k so they just might accept it.

If they don’t, I would leave it on the table while you continue looking.

Firstly, rates went up last week. How much is this house going to cost you? Whatever people say, this does have an impact.

Secondly, do you know the position of the vendors? Are they going to be buying themselves as there is likely to be less room for manoeuvre than a empty house.

Thirdly, I definitely go in at 10 percent or less to start. And if it wasn't my dream house or making a chain for me, I'd probably leave them and keep looking if they said no. Going back if they drop again.

Unless you think it's currently priced at a giveaway price, then I'd not be so hard.

Whatever you decide to offer, together with your offer I would also include as much evidence as possible that you are actually able to complete by the end of October. For example, I guess you are end of chain? Do you have a mortgage arranged in principle, and is the deposit money sitting in the bank all ready to go? Is your solicitor working through August and not on holiday? If the vendors can actually afford to accept your low offer - which they might not be able to do if they are buying another house - then your readiness to proceed could be the deciding factor.

You certainly DONT want to offer more than the online estimates (unless you have the money to throw away and it's your dream house). 240K is probably the max to offer as there is a possibility that the house will be valued 20%+ less in a couple of years time. Make sure that you will be happy in that position. If so then go ahead - we all need a home.

A 10% reduction on 270k would actually be 243k so if you offer 240k that is more than 10% under the asking price.

You might get lucky but I would be surprised if they would accept an offer that is more than a 10% reduction on a property that has already been reduced twice.

The flip side is that it has been reduced price because it was significantly over priced initially. That's not any buyer's fault; the seller and their agent over estimated the valuation. The OP says that agents haven't caught on to the fact that the market has fallen and so nothing is selling. Perhaps the sellers have wrapped their heads around this and will seriously consider the offer and perhaps they haven't and will decide to wait. They may be lucky or they may end up lowering the price even more.

I would over £255 - it feels over that £250 -which may be their mental 'barrier'

I love all the people throwing other people's money around like it's confetti. We are in a new paradigm. If you have money to burn then pm me!

I agree it was overpriced initially - bad advice from the EA I expect.

But it has already been reduced from 305 to 270 & the owners have moved fast to reduce it by 10% presumably because they are desperate to sell.

If @Polarsimilarities can get it for 250k that is probably a good price for a nice house. I think under 250k is taking the piss a bit but up to them of course. Doesn't hurt to start at 240k or 245k but I would expect to have to go up to 250k or it will reach such a low price the owner won't be able to afford their onward purchase so the deal can't work.

Offer what you would feel good paying and what you think it’s worth. I personally would go with a low offer and say you can commit to their October deadline (if you can)

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I understand what you are saying @Twiglets1 but perhaps the listed price is still 'a piss take' rather than what @Polarsimilarities is considering offering. I think she should offer what she is prepared to pay in the current market rather than worrying about offending the seller.

There are still plenty of houses being listed far too high. One near me, for example, has been on and off the market for ages. It has gradually been reduced by around 30% now. Not marked as STC yet. I think it is still 10% over priced compared to similar sales. I'll see what the market thinks.

Naturally @Polarsimilarities should offer what she is prepared to pay, I doubt she would pay over that based on a random person's point of view on Mumsnet. Nevertheless, she did ask what we would offer so I have explained that I would offer 250k because I doubt the Seller would accept a lower offer.

Will be pleased for her if she does choose to go in lower and I am proved wrong though.

You may well be right about the sellers not accepting 240. I was just disagreeing about what might be 'a piss take' because that it subjective.

It's subjective opinion hence why I said "I think under 250k is taking the piss a bit" rather than 250k is taking the piss.

You can certainly offer at £240K. Just be prepared to be rejected. They've already reduced over 10% in a month, and now you're asking for another 10% drop.

It will probably come down to their onward situation. They may need OIRO £270K. Or they may need sell no matter what and be open to it.

There is also a risk that they will see it as a piss take. If someone tried this with us I would worry that the buyers aren't remotely serious/will gazunder us in the end.

If may be worth scoping the agent out and asking the agent if they are open to low offers.

They're probably hoping to get £250k for it, so offering £240k isn't a mile away and they're running out of time if they want to complete by the end of October.

It largely depends on your situation OP. If you're under offer or a cash buyer or moving from rented then that's much more attractive to them and they'll be able to see their exit route. If you're still on the market, then it's not particularly tempting for them.

I’m currently selling my late mother’s house. It went on for £120K and we had offers between £70 and £128K. Obviously we’ve gone for the highest offer - it’s a cash buyer. Estate agents do know what they’re doing - sometimes sellers want to ask for more than the house is worth.
Offer whatever you want. If the sellers are prepared to accept your offer that’s up to them.

I've literally tried to state this to the agent and seller (sent a list of recently sold in the last year bigger and better homes on the street, various online valuation sites, and mentioned the increased cost of borrowing and reported 2% decrease in house prices). However the agent is insisting that their software values it at 10% more than those homes which makes no sense to me. I've had two offers rejected and I'm chain free with a healthy deposit.

I guess the agent doesn't want to earn a living!
Unfortunately, you will need to wait a bit until you find a realistic seller or until things unravel further in the economy. Good luck!

I offered on an incredible house in Jan last year that was realistically priced, but lost out to a 1st time buyer offering 10k less as no chain. Originally sold my flat April/May last year, offered on two homes but they wanted more (1 was a landlord wanting 10k above their agent's valuation, despite the property being a bit of a wreck) and withdrew from sale. Then nothing came to market that was suitable and I have recently completed my sale and in temporary accommodation, miles from places I need to get to regularly.

The house that I mentioned had been on for a month now, with only offers from me.
So I'm a very motivated seller, but can't risk paying well above market price, which is what asking prices have typically been for the past year,with many homes unsold or withdrawn. I've also heard that interest rates aren't going to come down anytime soon, so house prices really need to!

That's frustrating for you. I suspect that quite a lot more properties may come on the market in Spring. I do think prices will fall more (possibly a lot more) but it will take time. Could you find somewhere more suitable to rent in the meantime (unless you are saving £ by staying with family or something and saving up more ££ deposit).