Offers well below the asking price

[secretrugbyfan]

We have a friend that's selling their property and all three offers they've received have been on the basis of offering well below the asking price because the potential purchasers want to modify the property. The last offer was 80k below the asking price (the house is on for 520k and isn't overpriced according to them and what their agent says)). It was only built in the 80s, and has everything you would need...there is nothing missing etc etc. Is this a thing when offering on a house that as the seller you're expected to drop the price to fund the new buyer's potential changes? Seems a bit CF to me.....

It's a buyers market in many areas.

How do you know what similar properties are selling for?

You can't, they may have got well below asking and you won't know until it hits the public access info about 9 month to a year later (3 months or so for conveyance and 6 months or so to become public). By that point its just a guide not relevant to the current market.

Rightmove & Zoopla do NOT take into account 'state of repair' and Estate Agents usually build in at least 10% in overpricing (to allow for later price drops) and anticipate up to 10% for under offers.

As for condition, they recommend to retain house value that bathrooms should be referbed every 10 years (its been 13 years) and kitchens every 20 (it been so coming up in a few years) so both are somewhat 'old' and likely dated (we are halfway into the next decade with opposing current styles, 2010s was all about greys and brilliant whites and clean lines, 2020s is all about bold rich colours, period details and 'colour drenching').

Yes they can last decade long but as 'doer ups'. Just because they are not 80s doesn't make them new/modern they are at the end of their 'recommended' life.

Using the same time frame say if you bought a ford in 2012 for £15,995 you wouldn't expect that now and market it as a 'new' car when selling it, even if its still running fine its only worth £2,000-£3,750 (depending on condition etc...).

I’m finding this with my 1980s detached 4bed house. It’s neither “new” nor “period”, that’s the problem I think. The bathroom was done in 2014 and the kitchen in 2019, so not ancient but not shiny and new. Soffits will need work soon. Boiler 2013 which is ok but not a particular selling point. There are 7 of us on the market, all stuck.

The Victorian/Edwardian/interwar properties around here are popular, as are the postwar ex council houses on a nearby estate with their lovely big rooms and sizeable gardens. The new build houses a mile away are getting snapped up off-plan, I have an acquaintance who works part-time in the sales office and she told me. But 1980s? No, they’re sticking around.

Flats are another problem round here, FTBs prefer the 2-bed link houses, which sell like the proverbial hot cakes. But the folks who are selling those are not upsizing to mine!

Well she won't know what properties are selling for currently because it takes the LR 9-12 months to publish that information. Her interpretation of similar may not be accurate either because we all tend to like our own homes.

It's up to her if she wants to believe her agents or 'the market', which is telling her that her house is over priced.
She's got two choices:
Keep her home on the market at the current asking price and hope someone offers nearer to the asking price and actually proceeds with the purchase at this price. She may be disappointed as the market is clearly falling in a lot of areas but she could be lucky.
Accept that she and the agents were wrong and accept a lower offer or reduce her asking price and hope for some more offers.

This.

Generally places will not sell because either

a) they are overpriced.

b) there is something simple that can be rectified that people can't see through.

b) is normally quite rare because although there are some people who won't buy a house because one of the walls is pink, there are normally enough people around with imaginations and tins of paint not to care, especially in the UK market where property is sought after.

The only way you will get an unbiased opinion is to post it on here for people to rip to shreds. (Your friend should) hold onto that very hard hat though.

Often houses do not sell for their advertised price. It is quite normal for people to make an offer below the asking price, as a PP said often 10% . If I had a house on at £520k I'd be thinking I'd like to get say £475k. You say that 3 ppl have made low offers - I assume that the £440k one was the lowest . People offer low because they can't afford/don't believe it's worth the full amount but will often expect that to be rejected and have a buffer amount that they can go up to eg the person offering £440k might be prepared to pay £465k. If your friend rejected those offers point blank she won't know what they might have been prepared to pay if they negotiated.

Only if it is cash buyers, the lender"s valuation is what counts for mortgaged buyers.

Buyers are using various apps to track price changes, if the competition is priced lower or cutting their price your friend will have no chance of selling at asking price. People also pay attention to historical sold prices, if the present valuation is boosted by a sale when interest rates were very low that won"t work in a market where interest rates are now much higher.

They're offers, not a compulsory purchase. If the friend is convinced the price is fair, hold out. But 3 out of 3 makes me think it's overpriced. They may as well put in a cheeky offer, they have nothing to lose and everything to gain, particularly if they're not the first to put in a low offer.

80's is on the cusp of being crap, anything after the 60's generally could be a pile of dung - all sorts of daft ideas came in.

It could be overpriced, my neighbour over the way has his on for £525, identical and up together like mine, nice early 60's solid house, which I know is worth £400 and a rough example just sold for £350, so at £525 he's just too expensive.

Agents frequently overvalue properties and don’t want to reduce the price even when there’s little interest.

Does your friend think all 3 sets of buyers have formed a cartel to underprice her property? 🤣

The market has spoken - it’s up to her if she wants to hold out for more. The market may also be on the downturn and she may regret turning some of these down.

She sounds inexperienced in selling property (as do you). Is she attaching any value or thought to the position and proceedability of offerers. A mortgage free cash buyer for example is v valuable. FWIW - 1980s house are often poorly constructed / architecturally undesireable- and 13 year old refurbishments are viewed as dated by today’s instagram influenced buyers. Her home is probably in much poorer condition than you realise.

Take the emotion out of it. It’s not “cheeky” to offer x based on works you may need / want to do. It’s up to her to accept it. Or not. Based on her logic of these are BMV offers it will be snapped up by other full price offers …

Good points, if the market turns down not taking a "low" offer now could be a mistake.