Offering 15-ish% less than asking price

[MadRad]

Looking at a property, is in quite bad shape. It’s our absolute limit given the work the place needs. Really love it though and would be perfect for us.
Has been on the market for 6+ months if that matters, family selling after elderly relatives moved to a home.

There doesn’t seem to be a question in your post, maybe because you know your top limit so all you can do is try.

I would be surprised if someone just accepted 15% below asking price because if they were prepared to do that, they should have reduced the price by at least 5% to attract new interest. However, you never know and have nothing to lose.

Oh dear- I forgot to add my question! It was: is this too cheeky? Thanks for your advice!

It’s not cheeky as it’s all you can afford or are willing to pay taking into account the work that needs doing.

However they are unlikely to accept it in my opinion so if you can afford more I would try to offer closer to 10% below asking. Or at least be prepared for your initial offer to be rejected quickly.

Whether it’s your top limit won’t matter to them, but is it the case you also don’t think it’s worth more than that, given the work required?

If you can demonstrate that 15% under asking given the work makes it comparable to other similar properties in the area, and present yourself as a committed buyer likely to complete swiftly, they might be more amenable.

We could offer more but would have less to do the work. I do think it is overpriced for the area and comparable properties. There are larger properties in better condition for around £2/300k less in the same road or adjacent roads. Although I think it’s grade II listing and age are part of the appeal, but also why the work will be so expensive!

In your shoes I’d make an offer and include those details, and because I’m a sucker for things like this I’d talk about how you would really like to restore the house to reach its potential etc etc. If you can demonstrate you think your offer is fair given the cost of renovation and that you’re proceedable, who knows?!

If you think it’s overpriced then don’t offer more than you’re comfortable with but if the offer is rejected, offer instead on a comparable property that is cheaper.

Yes good advice to not offer more than we are comfortable to.
The others are modern and we are after a period home with character, so don’t think we will look at them- but maybe something else may come up!

With respect, if the others are modern and this one is a period property they are not that comparable in my opinion and this one being a character property would help to explain why it is more expensive.

But I hope something good comes up soon that has character and is more competitively priced.

Ah yes you can’t compare period and modern ref like for like - it’s almost like two totally different markets.

Agree can’t compare modern with period, my mistake! One of the moderns has 4 acres of land and is still less, which blows my mind a little.
Looking on zoopla though, a couple of other surrounding periods have sold for a lot less too, but that was back in 2021.

I’ll just keep my fingers and toes crossed. We are cash buyers so hoping that’s in my favour if nothing else.

Being cash buyers should work in your favour yes so Good Luck 😀

What's the worst that could happen?

I like your thinking

And then you won't be wondering "what if"

Seize your opportunity OP, I'm rooting for you!

Any update @MadRad ?

Vendors could get pissed off and not accept any offers however high from the OP. That's the usual risk of any low offer.

If the OP has set a definite top limit, and it's 15% down on the asking price, all I could suggest would be to go to the HA and be totally straight with them about it and see what they say.

Also we got irritated by a buyer that kept making really low offers when selling my Dads flat in London. To the extent that after they had raised their offer about 4 times, we did finally but reluctantly accept an offer from them. The EA only got us to agree to selling it to them by proposing they gave a 10k deposit, not refundable if they pulled out. Which they had to agree to because otherwise we would have chosen to keep it on the market over trusting them not to try to renegotiate at the last minute.

I think a deposit is very unusual outside of the new build world, but luckily our EA was highly experienced & skilled at getting property deals to completion.

Unlikely if they have been watching the tumbleweed for months, they would just be damaging their own finances to prove a point.