What is a reasonable offer?

[DownaDarkDarkStaircase]

Hello, I would welcome opinions please. (I have only ever bought one house - a new build - so no real experience of negotiation and chains. Fairly naïve about this kind of thing).
I have seen a house I would love to buy. It is valued at £640k. Four years ago it was bought by the current owners for £485k. They have added a beautiful new kitchen and bathroom. Still, that is quite an increase in value (maybe normal however, relatively speaking). What is a reasonable offer? I think 600 may be offensive but then again, that’s only 6% under the asking price.
I fully appreciate someone could just offer the 640 and that’s that but I’d like to try and get it for a little less if possible. It’s been up for sale for two months which doesn’t seem long at all.
what do you think?

Yes I agree. It is worth checking - interesting that the price is so different from the zoopla estimate.

Zoopla will not take account of many factors such as the beautiful new kitchen and bathroom you mention.

It provides a very rough guide only ... you would be better looking at alternatives for sale or recently sold in your area to decide whether or not the asking price is realistic compared to what else you could buy for about 600k.

Zoopla also can't distinguish between different kinds of housing stock in the same street, e.g. lovely Georgian house and unlovely former council houses (not saying all former council houses are unlovely, btw!). And it works off old 'sold' data, which only goes back to 1995, so if a place hasn't been sold since then it hasn't a clue. If it's only sold once or twice that doesn't help either, because those buyers may have over- or under-paid. Your best bet is to analyse comparators (similar-sized properties with same number of rooms etc) on Rightmove within a mile of the postcode of the property you're interested in. At what price point are they selling, and at which price point are they sticking on the market?

I see worthy properties going under offer relatively quickly, at least here in London. For property 2 months on the market I would definitely go in with 10% lower to start with. I see lots of delusional pricing in this climate. No chance property had grown by 150k in 4 years, unless the area went through massive gentrification.

I think the reason why it isn’t sold yet, is because they probably not accepting lower offers and still hoping to win the lottery, because the stock is quite grim at the moment.

Just out of interest - to those PP saying they wouldn’t except it because it’s a low offer - why is it a low offer? I don’t think 6% is a low offer? Or 40k off a house that price.

I know it depends on local markets I just think there is a widespread mindset now that people just won’t except offers below of more than 30-40k, regardless of what percentage that is. I just find it fascinating as house buying and selling is just as much psychology as anything else!

Should add I think that’s post covid