Is this offer of 10% below asking price too cheeky?

lockley815 · 2023-08-16T15:00:09+00:00

Hello everyone, We saw a property today valued at 599k. Looked okay in the pictures but when we arrived it was clear the property isn't in amazing condition: the roof needs work as does the external walls, the garden is totally overgrown, and inside the plaster has come off parts of the wall. There's also a leak which apparently is being investigated. These things don't scare us as we're looking for a fixer-upper, but we've decided to initially offer 545k. We've seen houses in the 550k price range which are in better nick, so to us this doesn't seem crazy. But am I just being deluded? Apparently the property is owned by a landlord, so I'm not sure if he's trying his luck and happy to hold out indefinitely - it's already been on the market almost nine months... (Our max budget is 550k by the way)

Silkiebunny · 16/08/2023 16:04

I think its fine to make that kind of offer though make it clear its your max otherwise they will reject I expect. You could also ask what would they accept and then you will know what you need not go above but can still offer lower. I have had offers accepted 10% under.

Postapocalypticcowgirl · 16/08/2023 16:07

I think make the offer understanding it may be rejected- there's nothing wrong with an offer being rejected. If the seller is offended, then so what?

Original poster

lockley815 · 16/08/2023 16:13

Postapocalypticcowgirl · 16/08/2023 16:07

I think make the offer understanding it may be rejected- there's nothing wrong with an offer being rejected. If the seller is offended, then so what?

True. To be honest, we feel the vendor is trying their luck with the price: we've seen properties in much better condition, with more space, for 25-50k less. But we like the location, and want a bit of a challenge!

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Original poster

lockley815 · 16/08/2023 16:13

Silkiebunny · 16/08/2023 16:04

I think its fine to make that kind of offer though make it clear its your max otherwise they will reject I expect. You could also ask what would they accept and then you will know what you need not go above but can still offer lower. I have had offers accepted 10% under.

This is good advice, thanks!

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TheJRTwontLetMeBe · 16/08/2023 16:14

If it's been on the market for 9 months then make the reduced offer. He can only say no. But you said We've seen houses in the 550k price range which are in better nick so why not buy one of those?

KievLoverTwo · 16/08/2023 16:18

It sounds a bit like 10% off won't be enough tbh.

Has it been reduced during that time?

Original poster

lockley815 · 16/08/2023 16:18

TheJRTwontLetMeBe · 16/08/2023 16:14

If it's been on the market for 9 months then make the reduced offer. He can only say no. But you said We've seen houses in the 550k price range which are in better nick so why not buy one of those?

We really like the location of this house, the potential it has

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Original poster

lockley815 · 16/08/2023 16:20

KievLoverTwo · 16/08/2023 16:18

It sounds a bit like 10% off won't be enough tbh.

Has it been reduced during that time?

Yes, already been reduced once

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DrySherry · 16/08/2023 16:48

Why not ? Its close enough not to be offensive. Don't forget this is a business property not their family home.

Twiglets1 · 16/08/2023 16:49

lockley815 · 16/08/2023 16:18

We really like the location of this house, the potential it has

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If this house is in a more desirable location, you can't really compare the other houses too much to the house you are interested in buying. You always pay more for a better location.

Having said that, in this market I definitely don't think your offer is cheeky, it sounds about right. Would probably initially offer 540k rather than 545k personally if I was prepared to go up to 550k but obviously up to you.

Original poster

lockley815 · 17/08/2023 13:54

Update: they rejected our initial offer. However, a similar property has come on the market for 90k less and, while not as nice, is surely indicative that the owner is massively overestimating his property's value. We'll go back with one final offer and then have to walk away if that's rejected.

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XVGN · 17/08/2023 14:39

lockley815 · 17/08/2023 13:54

Update: they rejected our initial offer. However, a similar property has come on the market for 90k less and, while not as nice, is surely indicative that the owner is massively overestimating his property's value. We'll go back with one final offer and then have to walk away if that's rejected.

If you go back with another offer then it sends a signal to the buyer that you have access to even more funds that can be extracted from you by negotiation.

With any home, just offer your maximum comfortable amount for that house and state that - no explanations - and walk away if the offer is not accepted.

Filament · 17/08/2023 15:06

I'd go back to the agent and explain to her that you'll be pursuing the other cheaper property if there's really no movement on price. It could be useful for the seller to be aware of the alternative house for price comparison.

Twiglets1 · 17/08/2023 16:24

lockley815 · 17/08/2023 13:54

Update: they rejected our initial offer. However, a similar property has come on the market for 90k less and, while not as nice, is surely indicative that the owner is massively overestimating his property's value. We'll go back with one final offer and then have to walk away if that's rejected.

Explain that to the EA when you make the increased offer then.

That if it gets rejected you will be viewing the house 90k less with a view to making an offer on that one instead if you like it.