Offer rejected. What now?

[LondanWay]

We're SSTC due to complete in 3 weeks hopefully. Short chain pulling together well. We made an offer earlier in week on a place we've had our eye on for months. EA said there'd been no offers & it does have a number of issues yet we could work round them.

Offered £390k when asking price was £420k. Vendor rejected it saying he'd paid £350k 7 years ago so expected to walk away with more profit than our offer would give.

Could afford to come nearer his asking price but maybe that still wont give him enough profit. Want the property but not impressed with his reasoning & not wanting to play games or pay over the odds Don't think its for us to maximise his profit and believe he should be biting our hand off! We took a hit on our house cause that's how the market is round here. Was excited when we made the offer. Feeling a bit flat now. Not sure where im going with this so guide me wise ones

>Offered £390k when asking price was £420k. Vendor rejected it saying he'd paid £350k 7 years ago so expected to walk away with more profit than our offer would give.

Is it a secondhand new build by any chance? If so, the vendor needs a lesson from the Estate Agent about how much value they LOSE within the first 10 years - especially in a falling or stagnant market.

Has it always been on for €420k?

The house is worth the amount you are willing to pay (assuming, if you are relying upon a mortgage, the survey agrees with you). You have to accept with offers that if you go below what is being asked the potential seller might reject it and sometimes takes offence at what they see as an insult, won’t accept an increased offer. If you want the property, up the offer. If you don’t, look around elsewhere.

There's not much you can do if the seller won't budge on price. You either pay more or walk away and look at other properties.

I understand the frustration though. I'm currently buying a house and the vendor rejected my first 2 offers, wasn't willing to negotiate or accept the fact that the market had changed. She said the price was right (even though the house had been on the market for 7 months with no offers and other properties in the same area had sold whilst hers had just sat there empty for months)

I offered the asking price as I really wanted the house and wasn't prepared to walk away. I probably overpaid by around 6-7k so not a huge amount though. I try to think of it as I love the house/area and plan to stay there long term rather than me helping the vendor maximise her profit.

You up your offer, or buy somewhere else quick, or lose your buyer.

I would try to forget about his apparent reasons for not accepting your offer. From your perspective it’s not relevant whether he won’t take it because got (potentially) misguided ideas about profit or because he needs the money for care for his sick child, you just have to decide how much you want the house and what you’re prepared to pay for it.

Presumably you’re not planning to move straight from your current house into a new house if your sale is completing in 3 weeks? Does that mean you can take your time with looking? If this place has been on the market for months and yours is the first offer maybe leaving it for a few weeks will give the seller time to realise he’s not going to sell it for £420k, if you really think that’s overpriced.

You either find somewhere else or make a better offer.

It's haggling.

elizzza you're right, his reasons are irrelevant. We're moving in with family so can take our time within reason - this just ticked a lot of boxes but don't want yo overpay.

If it’s somewhere you plan to live for quite some time, it ticks all your boxes and you haven't seen much else around to go for then then an extra £5 or £10k is neither here nor there. If you only plan a couple of years there or there are lots of compromises then move on.

In his head 400 is much more likely to feel good

What the owner wants and what he is likely to get are clearly two different things. What matters is how much you are prepared to pay for the house. However, I would be a bit concerned about what he has said as he seems unrealistic and perhaps rather intransigent in general.
As you have the luxury of being able to move in with your family temporarily, I wouldn't rush. Tell the agent that your offer will stay on the table and meanwhile sell your house and continue to view anything suitable on the market.

If you want it you increase your offer. Simples.

The owner may or may not be deluded but either way, you can't make them sell it for the price you want to pay.

Personally, if I really liked the house I would increase my offer to 400k. It's only another 10k which isn't much in the grand scheme of things and may be psychologically easier for them to accept. But if you do decide to increase your offer, you should make it clear to the EA that it is your best and final offer and you won't be increasing it.

Tell him that's your final offer and keep looking for something else.

He may not be any rush and be happy to wait for the person who falls in love with it and will pay the price. His reasoning is completely up to him. I think the options are to either offer more or find a different house where the price expectations are closer. We can't judge if it was a cheeky offer or he should be biting your hand off.

KievLoverTwo
No not a secondhand new build. 1940ish detached

I think you need to put aside your feelings about vendor’s reply to your offer. Is this the only house you have had your eye on? If you are just 3 weeks from completion then it seems to me you have had time to see what else is on the market. If you feel strongly that you think the house is worth not a penny more than your offer then move on and look/wait for something else to come along that ticks as many boxes. They may come back to you still and accept your offer. Do you know the vendors plans?