Vendors offended by offer

[Uhohuho]

I’m in a good position as a cash buyer as I’ve sold and renting at the moment. The property has been on the market for a few months.

I offered 7.5% under their asking price. This means that the vendors will still make almost 200k on their investment 11 years ago (they bought it to rent out).

They’ve said no which is fine but they and the estate agent both seem super offended. I’ve had multiple phone calls from the agent asking me to increase the offer and hinting that the vendor is offended. So glad I’m walking away as they seem to be a nightmare but is 7.5% under really low? It really isn’t worth what they are asking I don’t think.

You only know the actual value after a completed sale, spending money on improvements does not automatically increase the vale, people are mainly looking at size, location and price.

They are not offended. The agent is making that up to try and make you offer more. It's a known negotiating tactic although a very poor one. Some people fall for it, some don't.

Wait until after the budget, things are too unclear at the moment regarding the hit to property.

So the EA seems offended and has hinted that the vendor is offended. But this hasn’t actually been said to you, it’s just a feeling you’re getting. So I suggest no one is offended and you are reading too much into it.

EAs have way thicker skin than this. They will not be bothered by low offers and 7.5% isn’t that low. What are talking here? £30k off a £400k house. It’s perfectly normal. He may be a bit annoyed you’ve come in with a bid and are not prepared to up it, that is a bit unusual but it’s totally up to you.

H

Do you know that the vendor is offended? Have you directly asked the agent if they passed the offer on?

Now is the time to book some viewings for other properties with the same agent.

No. Walk away. If they come back an accept go lower. You are in a really strong position and it’s a buyers market. I believe in things happening for a reason, just maybe a more suitable property is about to make itself known to you.

I agree. Can you contact the vendors directly, and see what they say?

I always offer 10-20% less

I doubt anyone is offended. The EA does not have enough buyers right now so trying to fleece you.

I’d go back with a lower offer now and hold firm until after the budget announcement.

And. Always ask the EA to confirm in writing that your offer has been put forward.

EAs often use faux offence to suggest to buyers that their offer is too low. It’s just a technique.

If you don’t think it’s worth more than that then stick to your guns. It’s possible the sellers will accept your offer at some point if they don’t get a better offer.

Ignore the pretend offence op. Stick to your offer or walk away.

The comment you make that they’ve made 200k in 11 years is a bit ignorant. Hope you’ve not said that to them or EA. If you did I can quite see why they are insulted.

The ONLY time absolute value of houses matters is when you buy for first time, or sell your last house/downsize. All houses you buy and sell in between is about relative value. Whilst their house has gone up in value in 11 years, so is any house they are looking to buy. Their purchasing power is what matters. Just becuase people made £100k on property they bought pre 1990s doesn’t mean they’re stinking rich in available assets , it’s all paper money until they come to sell for the last time or to downsize when actual real equity can be released.

ifnyou want to negotiate the price, then you must use data to support your offer. Yep, not being in chain is a massive advantage to some sellers so go in with lower offer in light of that. Then look at sites with what similar houses in area sold for recently. Use that data to give them example of why you’re offering what you are. Or you could , at later point negotiate down as result of survey findings.

7.5% below asking price doesn’t seem outrageous, most property round here is selling between 5-10% below asking price, and lots have to reduce price. People have got used to massive price increases since 2021 Covid stamp duty freezes, when market was mad and prices rose at silly rates. As you say the market is much more stagnant.

but, point is they could be insulted by how you justified your offer. What exaclty were arguments you put forward. If you did say something about how much money they’d made, frankly I’d have refused to sell it to you point blank for being so bloody rude . If you didn’t say that, thank goodness! But do think about how you said it ..apologies if necessary and then start to negotiate with data and stop making personal judgements about people in terms of what they deserve in future.

I do agree with @Limehawkmoth that the 200k in 11years is irrelevant really to your offer @Uhohuho & I hope you didn’t mention it. The house may have increased in value a lot over the 11years but so will other properties in the area.

Hi

No of course I didn’t mention how much they’d made in the last eleven years! That would be rude and irrelevant. I’m not sure why I put it in the op, I think it’s because I wondered if it was a bit of a faux pas offering 7.5% under as I am very working class and they appear very wealthy. It felt as if I wasn’t good enough to buy their house and wanted to check here anonymously before I made any future offers.

When I made the offer, I explained my reasoning and made it clear that I loved the house and how they had decorated it and why I wanted to buy it.

When the agent turned it down I asked them to pass my best wishes onto the vendor and that I hoped they would soon get a sale.

if I’m honest I felt a bit intimidated but the differing perspectives here have been really helpful so thank you.

No faux pas & no need to feel intimidated. I would be quite pleased to get an offer of 7.5% under in this market tbh.

They have made nothing until they actually sell it, the "200k profit" claim will no doubt turn out to be over-ambitious.

Approach I took with agent spiel of ‘sellers would ideally like £y’. Well I’m offering £x so please let me know when you have taken formal instructions on that offer. Stand firm. They’ll try it on all they can to push you up.

Did you take into account any renovations or improvements?

You made an offer. They said no. Offended doesn’t come into it.

You made an offer, the vendor refused. I think 7.5 percent is low and personally I would not offer less than 4-5 percent below as a first offer and if that was refused might offer 3 percent below if I really wanted it. How much they paid 11 years ago is really nothing to do with it because they might have spent a lot of money renovating it.

They have been trying to sell for "a few months", money spent on a property isn`t really that important compared to size, location and price for that size and location, refurbishments might be to the sellers personal taste but might put off potential buyers, spending money on a property is always risky, you are not guaranteed to get the money back.