Help us decide how to proceed with low offer

[Screecy]

Our house has been on the market since before christmas. This is the first offer we've got - its way below asking. 551 and we're on for 630. Theyre SSTC. We'd be open to an offer much closer to asking but this nowhere near!!

What tactics can we use to get them closer to what we want? Our estate agent says theyre giving nothing away so no help there. Agent sees this as too low an offer but its the only one we've had.

How did you arrive at the price of 630?

Not quite on topic, but has your agent said why no other offers, especially if they think the price you're asking is a 'good' one? How many viewings have you had?

Is your asking of 630 reasonable? In keeping with the area and recently sold properties?
What's the lowest you'd accept? There's no way in hell I'd be accepting such a low ball offer. Assuming you haven't ridiculously overpriced it.

I think if it's way off what you are hoping for then you'll just have to be honest and say although you are open to offers, it does need to be closer towards the asking price.
They may come up a bit. Most people don't expect the first offer to be accepted if it's below asking price. They will have room to manoeuvre.
Good luck, its a grim time trying to find buyers at the moment.

It depends on your circumstances of course, and what similar properties are selling for, but when I had a low offer on my house (the previous sale having fallen through) my EA said the same thing. It was tempting to consider it, just to get the house sold, but in the end I went with the EA's advice. The offer was subsequently increased to the asking price. So in your shoes I would reject the offer, as 3 months is not a huge amount of time to be on the market these days. The other factor to consider is that if something comes out in the survey, the offer might be reduced further.

Ideally you want an offer where you would be happy reducing it a bit further if something unexpected arose - just my opinion. But equally, you don't want to sell the house for less than it is worth, and the EA is the best judge of that.

I would think about this slightly differently.

Your house has been on the market since before Christmas with no offers, therefore it is time it was reduced. I am surprised if your EA hasn't already suggested a reduction which should be about 5% to you, which would mean it should have been reduced by now to £600k, say.

If it was on at 600k, offers of about 570-575k would look decent. Therefore I would counter with an offer at 600k and be prepared to accept offers around the 575k mark.

I'd go with this, but counter-offer with 610k to account for survey issues etc. 551k is a weirdly specific amount, and I'd be wondering if they're pushing their luck and can't really afford anywhere near to your asking price.

To answer a few questions
Original price was based on similar properties sold in the area and then reduced in Feb by 5%.
Agent saying not much selling in this price range. No issues with the house - well presented etc
Had about 10 viewings. Feedback mostly positive, some viewers just saying it wouldn't suit their family sizewise.
Unsure what lowest offer we'd accept but certainly won't accept this offer. Good point about needing to consider it couldrop furthere after survey

Thanks for your comments

Not sure why you would entertain such a low offer from a non cash buyer / FTB ... In a chain it can take up to six months to complete vs weeks for a cash buyer.

Just say no. If they want it, theyll up their offer. If they're just chancers, they won't. Quite simple.

I remember viewing a house last year that was on for £425k. We were in the position of offering £380k and she point blank refused saying they wouldn't accept less than £400k. House is still up for sale and has been reduced to £300k!!!

All depends how desperate you are to move.

I would not respond with an alternate figure but would instruct your EA to go back and say "the vendor is willing to find an agreeable figure to proceed with a sale, but the figure of 551k is not it"and see what the possible purchasers return with.

Or give the EA a figure which you will sell at, and advise them it is a figure which is not open to any further offers.

I know buying and selling can be a game of back and forth offers, but it is always quicker and easier if people just state the figure they will accept. The possible buyers in this case may not be prepared to offer higher than 551K, find that out straight away then you can both move on. If everyone knows you will sell at £600k then great state that and proceed to a sale.

@Screecy

Unsure what lowest offer we'd accept but certainly won't accept this offer.

You've answered yourself . Don't accept.

Doesn’t the property market perk up a lot at Easter time? Maybe more potential buyers will emerge in the next few weeks, meaning that you may have more viewings / offers on the table…

What feedback have you had from the viewings?

You need to work out what price you will accept

what is your position?

Agree. There's nothing wrong with making a cheeky offer, but there is also nothing wrong with declining to negotiate over it.

People can offer whatever they want but that doesn’t mean you have to accept it. The more you need to sell, for whatever reason, the lower the offer you’re likely to accept. Work out the minimum you’d accept but don’t communicate that to the estate agents or people offering but you need to work it out for yourself. Then reject the offer. They’ll either offer a higher offer or they won’t but either way you’ve said you can’t go that low.

That sounds eminently sensible to me.

Ooh I don’t see many other Twiglets 😊

I would go back with £600k, 5% under asking. And if they come back with a counter offer go down another £10k and say “lowest you will accept “, while keeping in touch with your EA to ensure that you are not being unrealistic.

Put yourself in the shoes of the buyer, would they have other properties to move on to if the bid was declined?

If yours is the only one of the type in the vicinity then you have a fairly strong hand, if there are several similar at the same or lower prices your hand is weaker.

Nobody really knows where the offer sits in relation to that, so we are all just guessing.

However with only 10 viewers in at least 4 months (you don't say how much before Christmas it was), that isn't a lot at all. Maybe its a niche market with few buyers and sellers, but that cuts both ways, if this buyer leaves you may be waiting a long time for another on this level of activity.

If you don't want to accept the offer you are free to decline, but then also the buyer is also free to not improve it.

I did take a ridiculously low offer, but my house (a former show house so beautifully decorated) was on the market for eight months. One sale had fallen through at £40k more than we finally got. I accepted because he was in rented, lots of family knew him and he could fit in with my time frame and I was getting desperate. Luckily I also got a bargain with my purchase.

I wouldn't take a low offer from someone with a chain.

Listen to this advice, it's right.

I don't think you can use any tactics. Just say 'no sorry the offer is far too low'. If they are willing to go higher then they will.

How desperate are you to sell soon?

More thanks for the comments. Were taking them all in.

We're not desperate to sell but want to.