Buyers Market or no?

[girlbossmomma]

Hi all,

Iv seen a 4 bedhouse on Zoopla that is currently priced at 400k. It's been on market since early 2023 - they started at 415k and then 6mo later reduced it by 15k.

It's a lovely house but I don't think it's worth 400k. I'd be happy paying 370k at most.
But how much is too low??
I don't want to offend the vendors.

I'm also wary of the whole "negotiation" palaver so don't want to start too close to my final price to allow for back and forth "negotiations".

Mentally iv moved in already (never a good idea!) but wouldn't want to to over pay either.

So is it a buyers market or not? Really want to choose a (starting) number to make an offer on Monday.

Any advice would be appreciated, thanks!

How can anyone possibly say without knowing the location, house spec, local sold prices.

If you want serious advice, you will need to post a link, OP.

I was just about to ask the same question, even down the the same figures. How weird!

I guess it depends in the sellers position and yours.
If they're desperate and you are ready to purchase, they might consider it. I guess you won't know unless you try.

If it's been on the market for a year I'd assume they've already had low offers and are holding on for £400k.

I doubt that these are serious sellers. If they were, they would have reduced the house more to obtain a sale by now. The house is obviously over priced or it would have sold long ago so don't over pay in a falling market (yes, it's a buyers' market in most areas).
All you can do is offer what you think it is worth. If that is max £370k then offer that. 370k is less than 10% off which is v reasonable considering that the house is over priced.
Have a look at MovinghomewithCharlie on twitter/ YouTube. He has lots of for FTB/ making offers, etc

It is a buyers market in most parts of the U.K. but you should be doing your own research into the property market in your area as there are regional variations.

Generally speaking though, for properties that seem reasonably priced, many people try offering about 10% below the asking price which in your case would be £360k. That figure won’t offend the vendors & allows for a little negotiation if you are prepared to be talked up to £370k. If you believe the house is worth that based on other properties you have seen in your area.

Don't get sucked into negotiation. Work out what the property is worth to you and then offer as much as you can afford up to that level. Tell the EA that you are offering the maximum you are comfortable paying and cannot add more.

Why go straight in with the top amount people are willing to pay? By offering a slightly lower amount people can sometimes be pleasantly surprised by a Seller accepting their first offer. Or the seller may suggest a higher figure but through negotiation the Buyer can still save a few thousand pounds on what they were ultimately prepared to pay.

Don't worry about offending them - they can just say nope if they don't like your offer. Just offer what you think is reasonable (based on past local sales) and affordable to you. Maybe they go for it, or if not you move on to the next.

It isn't a buyers market or a sellers market, it is an uncertain market where a lot of people are waiting it out. It sounds as if these sellers aren't desperate to sell but that wouldn't in any way stop me making an offer.

If you really want a property then just offer what it's affordably worth to you regardless of the sticker price. You could offer 10K less and lose it to someone who wanted it more than you. Obviously in that case you didn't want it enough. Or you just shot yourself in the foot.

Offering the maximum affordably worth to you doesn't mean paying the asking price.

If you like negotiations and think that you can beat an EA and seller at their own games then go ahead and play. Its for each to choose their own path.

You sounded like you were telling @girlbossmomma not to consider negotiating "don't get sucked into negotiation" but I agree with your last line, it's for each to choose their own path.

If they are happy to negotiate then they could potentially save a bit of money that way so that's what I've always done, and never lost a property I really cared about. But some people don't want to negotiate of course.

The first approach is really for people who desperately want the best home they can afford.

The second approach is more for investors who don't care about losing out on a property.

For those houses that are hanging around, I think a lot of them don't want to accept offers. Perhaps it's a divorce where one partner doesn't want to sell, or someone just testing the water in case they get a large offer.

If I were you (not that I'm an expert 🙂), I'd get your name on all the estate agents' books, say you're motivated, but want a realistic price. Then when something comes on where they'll accept offers, you'll be negotiating with a realistic seller instead of a deluded one.

That's your opinion but I respectfully disagree as I've always negotiated and I'm not an investor. I have negotiated even when I have desperately wanted the best house I can afford. Often because I know buying the house will be a stretch so I need to get it for the best price possible.

It is a fear that you could lose the property by negotiating but EAs are used to it and will go back and forth with all interested parties, unless it has gone to sealed bids.

Investor in the sense that you are willing to risk the loss of the property for the sake of getting a property for less than you are willing to pay.

I don’t think there’s “one true way” for negotiating but personally I think if you’re wanting to pay under the asking price it’s psychologically easier for the seller to feel good about if they manage to feel like the buyer has upped what they were first offering - ie both parties get to seal a deal with both feeling like they’ve got a good outcome. And in house buying it gets very fraught as things progress so if you can both start off feeling like you’ve had a win, this can only be good thing.

If you are only happy putting in a bid for 370 then that's what you put in. There is no point in paying more than you think the house is worth. The Estate Agent and the vendor want the highest price they can, you want to buy it for what you think it's worth. Nobodies going to be offended and what if they are, it doesn't matter

You mention you've seen it on Zoopla. Have you viewed it as well?