Offering under asking price

[Gonnagetgoingreturnsagain]

Asking for DB and SIL. How much is acceptable to offer under the asking price?

for the past few months they’ve been house hunting and have seen their second perfect house. First got away as they hadn’t sold their property yet. They’ve offered almost £15K under the asking price but could afford £5 or £10K more.

So what would you say is acceptable to offer at under asking price?

I feel they’ll kick themselves again as it’s perfect in every way if they don’t make another offer soon.

It would obviously depend on the value of the house. £15K under on a £100K house is taking the mick (unless there’s something wrong with the house). £15K off a million pound house is buttons.

I'd offer what it's worth to me and looking at comparables in the local area. I don't think there is a rule of thumb.
If they'd be gutted if they lost it then they should decide what their maximum is and offer that as a full and final of their current offer is rejected, or go up in increments towards that.
This is why people pay asking or over asking, to lock in what they want. But if they can't afford asking price then they have to accept they may get outbid or the seller may reject as they are ok waiting for a better offer.

If they want it don't mess about.

I did this and someone put a higher bid, l was gutted

I think they’d be right to offer eg £10K under asking but no more. It’s a nice enough house but slightly dated. But it’s the best out of some 25-30 houses they’ve viewed so far in person.

I think the market the way it is now they shouldn’t mess around. The other house they offered on is in a chain and this isn’t.

It depends how much they love the house and what it is worth to them, having carefully researched the local market. There is not specific figure but 10k/5k means nothing without knowing what percentage of the asking price this represents. So best to offer what they are prepared to pay as @OttersAreMySpiritAnimal suggests.

Is the market in your area moving rapidly? I'm just wondering because it is very slow, lots of reductions and a buyers' market in most areas.

It’s £575 at the moment. Asking price. It’s been so long since I bought my place that I’ve got no idea about what to offer.

On the plus side it has a spare bedroom they’ll rent out, fairly easy commute to work for SIL, school 5 mins away, nursery similar. Me and my DM have offered to help with school pick up and drop off as we both live nearby albeit in slightly different directions. But will save on their current breakfast and after school club costs, it’s in a cul de sac.m

From what I can see it’s the priced at slightly above market rate but not hugely. They do seem to love the house though. To me it’s just a normal 30s semi!

@Gonnagetgoingreturnsagain 10/15K is a very small percentage on a house being marketed at 575K.
I'm sure they have done so already but I think that researching the local market carefully and looking at the property lion add on which you can download on google chrome, otta.property and acadata.co.uk is essential.

Can they not afford the home without renting out a spare room? That doesn't sound like a great and isn't ideal anyway given that they have small children.

If they've offered 560k on a 575k property then I would say that is a very good offer in this current market and hopefully it will be accepted so they don't have to go any higher.

I would have offered 550k personally on a house I liked so think the owners will probably be pleasantly surprised to get such a good offer, assuming your brother and SIL have sold their own house now.

Thanks. It’s a bit tight right now because DB though he’s got work it’s regular but not often. He’s retraining though so that should make things easier. Plus the baby is 6 months and older is 6.

Actually I think it’s £550 they’ve offered. Should they make it £555? I said they should do £560 but this is knowing they love the house and location etc.

Yep their flat (overpriced) is underway being sold.

I’ve just offered 85k on a 100k asking price flat. It’s dated and needs modernisation.

its also upstairs which are harder to sell, after researching what sold in the area like for like, I feel it’s well overpriced at 100k.

im yet to hear back from the vendor

If they’ve offered 550k then they need to let the EA pass that offer on and the owners take a while to consider their response.

If it isn’t enough the EA will come back asking if a higher offer could possibly be made.

'Thanks. It’s a bit tight right now because DB though he’s got work it’s regular but not often. He’s retraining though so that should make things easier. Plus the baby is 6 months and older is 6.'

I don't want to be a killjoy but is it really sensible to stretch themselves so much that they need a lodger just to make the numbers add up with family helping with childcare? It seems rather risky with the economy heading downwards. Could they not choose something that they can comfortably afford?

It really depends. If the house is overpriced, then even if they get £15k off they could be paying too much.

If it is priced well, then they could get a bargain even if they pay asking price.

Also depends how much they want it. I was house hunting last year, and it was extremely difficult to find the right house in the right area I wanted. Then an absolutely perfect one came up for sale, with a keen asking price. I was the first viewer and I quickly offered asking price, which was accepted. They had a lot more viewings booked in, which they cancelled after accepting my offer. If I hadn’t acted so decisively then someone else may have got it, and I’d probably still be looking now.