What to offer?

[Pemba]

We really like a house and were planning on putting in an offer today. The house is asking for 'offers over £310,000'. However we think that's a bit ambitious of them. We were planning on offering £300,000.

Looking at statistics, the most any house on the street has ever sold for was £279,000 on autumn 2022. We don't want to overpay, but my question is do you think beginning negotiations at £295k instead would just piss them off? We would be going close to our max anyway and don't feel like it's worth the £310 k. It has been on the market for 2 months.

We have nothing to sell and don't need a mortgage, but would like to keep a little bit of savings as we are older.

So going to put forward an increased offer of £300k. Do you think l should word it to say it's our final offer? I don't want them to keep squeezing us.

I also wondered if I should point out that the offer is within 5% of the £310,000 asking price. What do you think, helpful MNetters?

I would just say £300k is your max and final offer.

My DS said (you need to mean it of.course and your situation will be different)

I would like to make a 300k best and final offer and would be grateful if you could pass this to the vendors and also let them know that:

• I'm a FTB in rented and able to meet their preferred date for completion
• I have a deposit and mortgage in principle and a broker ready to complete a mortgage application
• I have a solicitor lined up who has completed all the initial engagement paperwork
• I have a surveyor chosen who I will engage as soon as we have a complete chain

Then he was prepared to walk away as he didn't think it was worth more. He was actually very surprised and delighted when they accepted

I would not point out the 5 percent thing. They know 300 isn't 310.

On the 300 v 325 offer my son made he did point out to the agent that the house had been on 6 months he wasn't going higher. It wasn't worth it in his opinion. But he never asked the agent to tell the vendors that specifically, although the agent may well have done once it was clear he wasn't shifting from 300k.

It’s highly likely the agent doesn’t think they will get 310 either. I wouldn’t point out the percentage I’d just say it’s the final offer you are prepared to make. Perhaps put a timescale on the offer if you want to.

Ignore ‘offers over’.
Just offer what you think it’s worth. If that’s £295 then offer that. It’s not an ‘insulting’ offer. I’d offer £5k below my highest though to give yourself room to negotiate.
Market forces vary greatly. If the last house sold for £279k in 2022 how do you know? It’s hard to compare from sales so long ago.
I bought in 2022 (three bed terrace). Then you could find quite a number between £850-1m. Now you wouldn’t find any under £1m, and one across the street just made £1.75m (albeit it’s slightly larger than average). It’s all about location.

Offers over in a buyers market always gives me "awkward vendor" vibes! But that doesn't mean some won't wake up one day once they get few viewings, lower offers or no offers and the agent starts to encourage them to think realistically.

Think it's rude of you to expect the sellers to offer less because you want to offer less.What's the home report value on the property?

@Ginnnny 'rude', OK.... 😄I didn't express this thought to the vendor or agent anyway, it was just on here. And like I said before and most pps agree, their next purchase is not my responsibility. And 'home report' not sure what you mean, we are in England.

They seem nice people but obviously they have to look out for their own interests, as do we.

The answer anyway is that they are considering our offer to see if they can make it work. They would like us as the buyers, apparently.

Regardless of you only writing it here, it's a crappy attitude 😀but it's good they want you to be the buyers though!
Also googled, home reports are only a Scottish thing and I had no idea hahaha

I think that what @Feelingstrange2's son wrote is v sensible but perhaps you already submitted your slightly higher offer @Pemba. I think there's a good chance they will accept. You sound like the perfect buyers.

@Ginnnny it definitely isn't rude to offer under asking price in England, totally standard and sometimes offers a long way below asking price are accepted.

Hopefully they'll find a place and offer on it themselves and it will all come together!

Good luck but, in the meantime, keep looking. You never know what might pop up and while they are keeping you dangling use the opportunity to keep eyeballing new stuff to market.

Sorry @Ginnnny I don't think it's a 'crappy attitude', I find that silly tbh. It's just realism, financially the UK (well most of the world) are in uncertain times, people are struggling and everyone will have to take a hit. Imo.

@rainingsnoring perfectly reasonable to offer below asking in Scotland too! I was referencing the OPs comment The thing is their next purchase is not our problem, can't they offer lower themselves? Which of course some will think it's true, but OP doesn't know their circumstances...

I dont disagree with you re uncertain times and strugglng etc @Pemba but you saying the sellers can offer lower too isn't for you to say - you dont know where they are moving to/their circumstances/their cashflow. That's all I meant. Low ball offers are strategic and sensible for starting negotiations.

Our offer of £300,00 was accepted. 😃

Thanks for your help everyone.

Obviously I meant £300,000, missed a nought.

Congratulations!

Congratulations @Pemba !

Yes but I think that @Pemba made the comment in response to the seller's comment about how they needed a certain price which is a silly thing to say as it's not how the market works. Anyway, it looks as if the slightly higher offer has paid off. Congratulations @Pemba.