Making an offer 15% below asking price

[Sosol]

House came on the market last week and we had a viewing . It was ok, didn’t love it but wouldn’t mind living there.
I think it’s massively overpriced, it’s on sale for 500. I feel like putting in an offer of 420k just to see what happens; equally I don’t want to seem offensive, this isn’t someone’s home.
they are after a quick sale…. Thoughts he obv isn’t going to accept as it’s been on the market for only a week… but would you be offended

Normally first offers ime are rejected unless at asking price. I think I offered 15% under they negotiated to 10% under but then survey showed issues and got the 5% off then.

We’ll be selling a house in the new year, it’s currently waiting probate and needs work, we will be pricing it accordingly so will be a great first home for someone If the person offering seems honest and genuinely proceed-able so we can have a hassle free sale I think we’d accept that percentage but maybe not after a week.

Regardless whether it is or isn’t overpriced nobody would accept an offer that low after a week. If they were after a quick sale and believed they needed to therefore list it attractively, they wouldn’t have chosen this price point.

Either you’re wrong about the price or the seller is - and only time will tell.

Do what you want... we did.

Didn't get it but didn't care either way as it was a back up to the house we really wanted, more money and not as good.

At the end of the day worst that happens is they say 'no' and refuse to sell to you. Since you don't seem to love the house that doesn't really seem like a huge loss.

Yes, there must be loads of deluded sellers chasing the market down now, wishing they had taken a decent offer a couple of years ago, no sympathy really.

https://www.propertylog.net/

See what other sellers are doing first, maybe you could get away with 20%?

Most if not all property is overpriced since rates returned to more normal levels.

Absolutely reasonable offer, probably you should go for more. AS the market adjusts to more normal levels of interest rates (i.e real terms positive) there will be quite marked drops in fiat based valuation of property. Unfortunately in this early stage of adjustment there is little transaction volume to garner objective evidence for valuations. However, there is historical data to reflect mortgage rate and house price ratios, that is a reasonable metric to base valuations upon, given the levels of debt underpinning this market. Most houses are hugely inflated in those terms due to many years of monetary largesse.

Oh and don't worry about offending a seller or concerned about what estate agents may say - the latter are desperate for transactions.

This is exactly what happens, by the time they accept the market has dropped, they’re too late with the reduction and it drips again.

😂😂😂😂😂

My son is going to look at house on Monday as the house he is buying - the sellers have pulled out of their purchase and although they are desperate to keep him as their buyer they are assholes

The house was up for 400k in Aug
reduced to 350 in Oct
it’s a 10 year old 3 storey / 3 bed en suite separate toilet / family bathroom
living room has a Juliet balcony
nice decor
garage / drive

You could have it as 4 beds as all the main bedrooms are large doubles with fitted wardrobes and you could easily use the balcony living room as another bedroon

Its also got a large kitchen / diner lounge

On doing some research exactly the same house in the next street sold for 320 in May this year . Nothing sold since .

Only difference is no Juliet balcony on the 320k but the house was built at the same time same square footage and decor is equal
And it’s not as if the balcony has a lovely view 😂😂

So he’s going to offer 315 as prices have dropped since May

but he’s got a fair amount of wiggle room up to 330-335 if the owner is willing to sell it chain free

TBH if you don't love it then you got nothing to lose from making a lowball offer. If no, you can just walk away.

That's pretty much how buyers who don't have any emotion attached to it play it, like BTL investors. They aren't that bothered because there always will be others, but they wouldn't mind owning something at that particular price.

If you've researched the area and considered the alternatives you get for your money and your valuation still stacks up at £420k then fine, stick to that and don't pay any more. This is a bit different from bidding £420k on a £500k place because all the money you have is £420k.

No-one really seems to consider that sellers asking prices may be based on even less logic or common sense. Couple of examples I've seen IRL with people I know:

1. 'Property next door sold for £xxx in 2021, thus mine must be worth the same as well (ignoring that anything has changed with affordability)

2. Seller appraises the market themselves and gets a figure in their head, then EA comes around, makes confident noises about it being worth £50k more, then seller can't mentally get away from this new figure until it goes months go by without anyone offering this inflated price. In their head the EA valued it correctly and it wasn't a trick.

Neither of these people have sold their flat, but if you asked them whether they were being stupid or not they would flatly deny it, and just blame the bidders for being stupid or the market for being dead.