How much under guidance price can reasonably go

[Nyckol]

Hi
We are looking to upgrade, buy a 3 bed property.
Our budget would be £270-280000, we do have a mortgage in principle that allows us to borrow more like up to £320000, but really don't want to pay more than 280-280 if possible to keep monthly payments lower.

I saw a property I like (only from pictures, know area), but haven't view...it's priced at £315 000, it has been reduced at this price in Sep 2023.

Was wondering if any point viewing considering the budget we've decided on and if we do see it and like it, what's the lowest reasonable we can offer? Like would not want to offend really.

Thank you!

Just looking for honest opinions.

Could you call and ask the estate agent?

They may have an idea on what the seller is after. As it's hard to say.
My friend has just bought a house advertised at 200 for 170, as sellers were in a rush to sell. To me that's a huge amount off.

Someone at work is selling their house for 350 and has refused offers at 345 despite it being advertised since Sept.

If it were me I'd call and say my budget is x amount and I don't want to waste either of our time viewing unless the seller is open to negotiation on price..

In England, I reckon 10% below is fine.
You can always offer more than your initial offer if sellers say no.

Go and see it first then decide on your plan of action. You might not like it or you might love it, that'll make a difference to your offer. I wouldn't tell the EA anything about what you might want to offer, but I would ask about the sellers situation.

10% was usually fine until the huge rush for property.
I woukd be honest and tell the agent you have £280 k. The issue I found recently is they want to see your mortgage offer then they try to spend all of it!

Talk to the agent, he'll know what they have in mind, otherwise you'll just be guessing

You can offer anything... you can offer just 1p or 1 million over asking but remember the seller has right of refusal regardless.

While 10% isn't insane in theory, any offer under still risks offending. OP is asking for £35k off an already reduced house so runs the risk of 'offending' and that sell could the blacklist any offer from her.

They can be right too as well, if someone offers less and gets rejected then comes back at asking or near and gets accepted there is a far higher chance they will try to re-negotiate back down after surveys and be a nightmare buyer.

OP can offer under, offer what you think its WORTH (not what you want to spend) but be willing to not get it.

You should aim to look at houses under budget not over.

You have to send EA decision in principle before they will allow a viewing in some areas.

Ask the EA if they have had any offers on it that they've refused. Sometimes it looks like a place isn't selling and you could get it for less, but it might be that they are actually holding out for the asking price or more.

The "10% rule" is not very helpful as it depends a lot on where the property is, it's not a buyers market everywhere.

Personally if I only wanted to spend £280k I wouldn't be entertaining a property that costs £315k, but worth speaking to the EA probably.

Thank you everyone for the insights and opinions.
I might call the agent and ask, but I don't really want to waste anyone s time, it's more wishing thinking than anything 😂

The house I’m selling has had offers all over asking - 7% over.

@Soontobe60 was your house advertised as offer above or guide price.
We actually saw a house that can work for us with a few updates(new carpets, re do stairs, new radiators) and it's advertised offer in excess of 250k, we were considering it as it is well within our budget, but not sure if we decide to offer how much too...
We are at the stage at looking around and it's hard to decide...one has a good price, one is kind of above but has extra bathroom...

The only real way to know is to make the offer and see if they accept it. It's so dependent on the vendors circumstances and attitude as well as much as anything about the actual house. Definitely go see it - it's not wasting anyone's time. You don't have to offer if you don't like it.

It's so variable, DS and his partner, FTBs, viewed a property, made an offer slightly under asking price, told several others, all FTBs, had made offers and it will go to best and final today. DSs offer was his best and final so that's a no then. Everything decent is flying off the books. I expect he'll land up continuing to rent at this rate.

Look at it and make you own decision about what it is worth to you. That could be any value X% more or Y% less. There is no fixed number that will necessarily work or fail, or that is allowable or cheeky. Just don't overpay.

I just completed a transaction in the US where I paid 20% less than the asking price and agreed for the seller to pay costs. Anything can happen.

I honestly don't think you are wasting anyone's time to view a property listed at 315k since September. It really is time they reduced it again, down to 300k or slightly less. Therefore an offer of 275k or 280k would be about right.

As a PP suggested, I would just view it first before deciding on strategy.