Vendor won’t make a counter offer

[Firsttimebuyer91]

We saw a house we love on the market for £775,000. The house was initially on the market in January for £800,000 then came off the market and was put back up last week at £775k. The agent told us that the property had sold for £800k but had fallen through due to a change in the buyer’s circumstances.

It seems odd to put it back on the market for less than it had previously sold given it’s a much better market now (May rather than Jan) unless they’re in a rush to sell.

We made an offer of £745,000 yesterday which we thought was reasonable as a starting point for negotiations (3.5% below asking price). We agreed between us that we are willing to go up £765k but of course would like to pay less if we can!

This afternoon the agent came back and said the offer was far too low and so we went up to £755k. The agent came back again saying it was too low. I asked if the vendor had made a counter offer and she said no, they are willing to negotiate but won’t negotiate on £20k below asking price.

AIBU to now not want to go back with a higher offer? I think £755k on a £775k house is worthy of at least a counter offer to begin the negotiation process.

Any advice on what to do next?

I know you haven't made an offer in % but reading your posts you are mentioning % your offer is below the asking price (it was 2.6% and I rounded it up to 3%) and it comes across as though you have to achieve a certain % of the asking price in order to proceed, hence the negotiations.

Sometime when buying property, you have to make it clear to the vendor and the EA you are prepared to pay a certain amount. The constant upping of offers, actually makes you look a bit of an iffy buyer.

If this is the house you wish to make your home, then send an email with your maximum offer, with a little bit of info of your situation (FTB, cash buyer, own home sold etc) and explain this will be your last offer. You can state you will leave it on the table, or stipulate it is on the table for X amount of days. You will then have taken back control of the situation, rather than as it currently stands the EA believing you will keep coming back with increasing offers.

OP - forget your 2.6%, 3% - it’s irrelevant.

The seller has dropped price by £25k. And you’ve offered another £30k less. Of course they are not going to engage. The fact that it’s “only” x% is not relevant - it’s THIRTY THOUSAND POUNDS less than their new asking, and FIFTY FIVE THOUSAND less than they originally wanted.

Stop dicking about and put in a sensible offer - you need to understand that you saying “it’s only 3%” looks very different from their perspective of “£50k less than we wanted”.

If you are prepared to go up £765k - and walk away without at this point - then put that offer in. I’d suspect they are looking for minimum £770k.

Either put in a serious final offer or walk away.
They have already had a sale fall through so are probably in no mood for game playing.
By repeatedly coming back with offers like this you aren't coming across as seriously interested buyers, more just trying your luck for a bargain
They probably don't want buyers who they don't trust not to try and drop the price the day before signing contracts.

If they aren't in a rush to sell then they have no reason to accept a lower offer and might well be happy for their house to sit on the market for months. Or in their mind they've already lost 25k by reducing the asking price and possibly lost the house they wanted to buy because theirs fell through and aren't in the mood for 'cheeky' offers like yours op.

I just offered on a house, 18k below asking price. 2 of my previous offers were refused. I wasn’t playing games just wanted the best price. Mine sold at full asking price but was priced well as sold within 24 hrs. I agree with Op. It’s a buyers’ market. Maybe keep quiet until after the weekend then ask for an update. I think it really depends on how motivated vendors are to sell as to what the outcome will be. I’m rooting for you though!

The fact that similar properties in the area are listed for £725-775k and the fact they’ve listed it at £775k suggests it isn’t worth £800k.

I don’t know how long it was on the market for before - we just saw on right move that it was listed in January and we were told it had sold but had fallen through.

We’re not more attracted to this one, the EA with this one just had viewings available on Saturday and we weren’t able to get a viewing with the one across the road. We’d be happy living in either.

Update on what @deelishiS0 ? They already rejected Ops latest offer.

OP the more you post the more it's clear that this is not your dream house and you would not be that bothered if you didn't get it. You see it more as an investment that you want to get the best financial return from, rather than a home to make your own.

In that case, I would say just walk away now and keep an eye on it. If the price is further reduced over the coming months you might like to do your sums again. Or just find something else to buy that gives you that return you are looking for.

I haven’t said the market is strong - it’s a buyers market at the moment and houses aren’t selling quickly at asking price in the area we’re looking. I said the market is generally stronger in May than in January because it’s a more popular time to buy a house.

In your OP you "love" the house.

I’m not looking for a return, I just want to get it at the best price like any buyer (and like any seller wants to sell at the best price). I love the house but there are similar houses in the area for sale so I’m not desperate. I don’t want to pay more than it’s worth but would be willing to pay around £10k below asking price. I was just surprised that after saying they’re open to negotiation, the vendor didn’t come back with a counter offer to try and get me to negotiate upwards. But from what PP have said that isn’t common practice.

They don't owe you anything. You're playing games and they don't want to do that, good for them.

If you're willing to pay £765k, and you feel it's worth that, then offer that.

Sounds like the house is worth £800k but they're willing to sell at £775k for a quick sale. If I was them, I wouldn't accept less than £775k either.

I'd have been a bit put off by a buyer who made a low first offer, it's almost offensive. I'd be worried that type of buyer would mess around later on, reduce their offer for a spurious reason after the survey etc. It all sounds like game playing - unless you genuinely think it's over priced, just offer the asking price.

Yes we do love the house! We also love the near identical house over the road but haven’t had chance to view it yet.

They are entering a stronger period
For selling. Your offer is pretty insulting imo. They can wait to see what the summer brings. If you "love" the house, you'd be working harder to buy it. I "loved" my hose when I saw it. Didn't piss about with gaming - full asking price wasn't on the table with the EA before I'd driven away. They had three offers to consider all asking price but went with me because - who'd have guessed it - they judged that I really really wanted it, so would be the least likely of the three potential buyers to piss them about down the line.

I struggle to see how it would be worth £800k when comparing it to the price that similar properties are listed for and have sold for in the area. If we thought it was worth £800k and they’d listed it at a low price we would have offered asking price to snap it up.

It sounds like a very different situation with 3 offers on the table - of course you need to offer higher in that situation. The EA had told us they have no offers and no more viewings booked in so we offered a little below asking price. I find it bizarre that someone would be “insulted” by then - it isn’t personal!

They have you down as CFs so if you are serious about it, I’d put cards on the table re the highest you can go to and leave it with them.

We did this when buying our place (years ago now, for context). We put in a v low offer on this house which had already been reduced by £100k. It was declined politely and we didn’t raise it. Delighted to get a call some weeks later saying vendor would now accept.

I don’t want to pay more than it’s worth but would be willing to pay around £10k below asking price.

The house is worth what a purchaser is prepared to pay for it. Estate agents don't give exact figures because even they, who do this day in day out, don't know.

This is why you should offer what think it's worth, what you can afford and what you are happy to pay. If your offer isn't accepted you have the choice to increase it or walk away.

People who love a house usually offer the maximum they can afford because they want to be accepted as purchasers.

This is why I think this one is not for you. When you find a house you really love, you will go in with your best and final offer because you will actually want it. You will know it when you find it so keep looking. This one is clearly not for you.

They put the house back on the market last week, priced to sell, and within a few days had had an offer. They'd be daft to sell under asking price at this stage. Who knows what someone will offer them in the coming week? Maybe they're hoping for a bidding war.

At the end of the day, you're the one without the house you love. We're all telling you the same thing, that it's clearly worth more than you're offering. It's you who's insistent that it's not and it looks like your game playing is going to lose you the house.

You say there's a cheaper house opposite that you love, in which case, why are you offering on this one? Will you just back out next week when you see the other one?

People have asked if you're a FTB because you're coming across and indignant and naive in the process. If they had an £800k offer 6 months ago, it's obviously worth near there and not £745k.

I chuckled when I read your responses arguing the exact % decrease. It's not about a % decrease, it's about what the house is worth. Game playing won't get you anywhere, buyers market or not.

Also you said they've been on the market since Jan. How so? They had an offer before so won't have been having viewings and offers. Then they came off the market. In total, I highly doubt it's been on the market long at all, hence your eagerness as soon as it was relisted.

I don’t think it’s likely to get a bidding war in the current market. There are several similar properties on at the moment within a few minutes walk and most properties at this price in the area are taking several months to sell, usually after a couple of drops in asking price.

I’m selling my house, the first offer was 10% under asking price. My response was that I wouldn’t entertain anything less than asking price in week 2. Not interested.

I had three asking price offers by the end of week 3.

The fact that their sale fell through and it has now been reduced isn’t hugely relevant imo. It has been back on the market for a week.

I wouldn’t entertain an offer in their shoes but they’ve said they will. Depends on how much you want it. Everything is going for asking price where I am.

Think you’ve watched too many TV programmes. You made a cheeky offer. It was rebuffed.

They’ve already lowered the price, very recently. That’s an indication of where they feel the correct value is. ‘Value’ is a balance between what people are willing to pay and what people are willing to sell at. £5-10k below asking price might have opened ‘negotiations’ - they have no interest in negotiating with you. Move on.

This is a straw man argument based on misquoting me. I haven’t insisted it isn’t worth more than I’m offering - I said we’d be willing to go 20k higher than our offer but aren’t sure whether to go for our maximum offer or leave it for a few days or make an offer 10k higher to leave room for negotiation.

I haven’t said the house opposite is cheaper - I said it’s on for the same price. If we agreed a price on this one we wouldn’t need to view the other one because we’re happy with this.

The EA said they had an 800k offer - that doesn’t mean it’s true and doesn’t add up to us based on the current asking price and the price other properties are selling for in the area.

I totally agree it’s about what a house is worth - I mentioned the % decrease because of posters saying 20k less is an insultingly low offer. 20k off a 775k house is not the same as asking for 20k off a £150k house - it’s all relative.