First time buyers - making an offer

[WayTooBigForYourBoots]

Hey , hoping for some advice…
as the title says my partner and I are first time buyers and we want to make an offer on a house.
To avoid a negotiation that we would likely lose, we plan to make a first and final offer, but we need to offer below the asking price.
I know it depends on many factors what a seller would accept, but assuming that FTB/no chain is a big positive for the seller, my question is what’s the most % below asking price that would usually be seriously considered, and what is the more typical % range from the listed price that would usually be acceptable?

It totally depends on the circumstances. I probably would only drop around 2 or 3% because otherwise things get a bit tight for us to move ourselves.

I’ve just accepted an offer from FTB - they offered 3% below asking and we settled on 1.5% below. It really is a ‘how long is a piece of string’ question - situations vary so much. Good luck.

can’t possibly answer without knowing a shed more detail

I wouldn't complicate things by saying "first and final ". Just make an offer. If you want the house, offer what you can afford, seeing as it looks like you can't afford the asking price.

We offered asking price and did it quick, think we were first to offer on our house when it went on the market. But we knew it was a great price for the house and location.

I’m always shocked when I see posters saying reduce by X% and it’s a really high %. I’ve never experienced that in our area. Any houses we have bought/sold usually go for asking price only, all except one which was iirc 1.5% Maybe they are just priced more realistically here? Although the ones I’ve seen on RM recently by a certain agent all seemed wildly overpriced, and I was right because, months later, after an initial SSTC they are all back on for a lower amount.

Firstly I agree totally with MsMcGonagall don't overcomplicate things by making a 'first and final' offer. It makes you look like you are complicated buyers who won't negotiate fairly. Why do you feel you will get into negotiations that you will likely lose? Can you not afford the asking price?
When I have been buying property I have always approached it by thinking of two figures. One that I would ideally like to get the property for (without being ridiculously offensive of course) and another figure which is the absolute maximum I can (and am willing) to pay for it. I then go in with an offer at the figure that I would ideally like to get it for and show a willing to negotiate up to my maximum if that offer is refused.

Some sellers would rather sell to someone who is willing to be fair and come to a mutual agreement on a price, than to someone who comes in with a 'first and final' offer. And yes, some people really can afford to be picky on who they sell their property to and how much for and many people will want to embark on a sale with people they feel they like and can trust.
Just last year my friend sold her house and accepted an offer from a couple because she liked and trusted them, declining another offer from another couple who had forcefully tried to offer higher and she felt that they were trying to bully their way in. She actually chose to stick with the first couple and take that slightly lower offer. She didn't feel comfortable selling to the second couple.

Very much depends on where you are, how long something has been on the market, whether it is realistically priced. Agree with PP that there isn't a simple answer applicable to everywhere. The 'market' isn't one homogenous thing, rather a series of them.

As a first time buyer you are unlikely to be buying your forever home and you likely have a few properties that are more or less equivalent to you. If that’s the case, put in an offer that you feel comfortable with. If the sellers reject, you have the option of putting in a higher offer or putting an offer on the next property on your list.

No can possible answer this. Some homes will sell for 20%+ below initial asking prices, others will sell a little over.

How long has the home been on the market? What is the sellers' position? What is your local market like; are homes selling or are lots being reduced? How often are potential properties coming on (over, say a 6-12 month period)? What is your current situation? If you are comfortable, there is no need to rush into buying, especially as the market is likely to fall further in general. What are your finances like? What about job security? Do you have/ want to have children?

You need to think through all the questions and more, carefully research your local market over a period of time so that you know whether the house is reasonably priced compared to others that are selling. Don't feel forced to only offer 2% below asking price because of someone else on here. Offer what you can comfortably afford, a figure which represents a good deal for a house that you can see yourself living in long term.

Being a FTB isn't necessarily a positive. If you read lots of these discussion boards at MN and elsewhere you'll discover that FTBs are often considered a pain in the you-know-what. Having no chain is a plus, but I'd always prefer a no-chain non-FTB to a no-chain FTB, all other things being equal.

I sold my house last year to a FTB family, we had no issues with them whatsoever, so I don't have any prejudice against FTBs as a rule. However, we had a lot of interest, and in the end my agents managed to get an extra £500 out of the bidding 'war' that occurred. It actually helped to have that little extra buffer, so I fully understand it when people refuse to reduce their sale price - sometimes that so-called measly 1% makes a difference.

'so I fully understand it when people refuse to reduce their sale price'

I guess it depends on whether they really want or need to sell and how much interest they have. The housing market is apparently 'dead' in a lot of places at present, according to another thread on here so they may not have much interest unless they have priced it keenly and kept it in good condition.

As a general rule the more the house theore wiggle room there is. If the house is 200k I'd be offering very close to the asking price, 197 etc but if the house is 700k I'd offer around 680.

All depends on the house though: how long it's been on, location, school catchment, interior etc etc.

Good luck!

You might find it helpful to listen to some Youtube videos from@movinghome with Charlie.

It varies greatly but as a very rough guide, an offer more than 10% under asking is not likely to be accepted unless the seller is desperate or the property has been on the market for a long time.

I would offer about 10% under on most properties in this market but expect to possibly then have to haggle up a bit depending on the property.

Many people won't haggle, though. They will consider your offer insulting and refuse to deal with you further. This is an emotional experience for many, not a cold business transaction.

Some people seem incapable of not taking everything as a personal insult, unfortunately. They are probably not the best people to deal with in what is, in reality, a business transaction. These people will probably be fine in a rising market where things are selling well but not so much in a falling/ stagnant market where many things are simply sitting on the market for many months or even years as they are now in most areas.

You should be guided by what you can afford and your knowledge of similar house prices in the area rather than the percentage discount you can obtain off the current asking price.
Their Estate Agent should be able to advise you on the seller’s situation, such as will they consider an offer, do they need a quick completion as they have to quickly complete on another house purchase or whether they are still searching for their next property.
You may make a lower offer than the asking price but they are not obliged to accept or negotiate. They may decide to leave your offer on the books & wait to see if better offers come in.
You need to weigh it up whether you risk losing a property you love by haggling for a discount.
You should also be aware that people may not think that as a FTB it automatically puts you in a better position as a buyer, as there can be all kinds of delays with house purchases such as over busy solicitors, waiting for surveys or delays with the mortgage being issued.

At least 10% below, house prices are falling by each passing month.

I honestly don't think many people would entertain 10% under asking price. Sorry. Not unless they're desperate.
For us (and others I know who are selling ATM) we just couldn't afford to move at that level so we'd have to say no. Even if that meant not moving at all.

See, I've seen lots of homes being reduced by 10%+, especially this year (the trend has definitely increased). When they finally hit the LR figures, you can see that many have accepted offers below asking price, some significantly below. The majority of homes are initially very overpriced at present, which is why they are sitting on the market for ages. I've also seen reductions on new builds in several areas which is unusual normally.

I do agree that some can't afford to move without a certain figure as the band above may not have reduced. I think a lot are deciding not to move for this reason.