Low offers due to people wanting to make big changes to the house

[CBradshaw]

We are selling my Dads house after he passed away. The offers received so far have been 10% or more below asking price. They've all said it's because they want to extend or make changes to the house (such as moving the location of the front door). We have declined all offers, as we know the house is worth close to the asking price, due to location (sought after road in the town), and the size/privacy of the front and rear garden.

Is it normal for buyers to pay a lot less for a house that they want to change, but doesn't actually need any alterations? I think they want a house on this road, but the actual house/layout doesn't meet their requirements.

Nobody needs a reason to make whatever offer they want to. You can decline any offers you want without justifying your decision either. There's no point trying to decide if you think their reasoning is acceptable or not.

I think this has happened quite a lot in the last 2-3 years.

Many people rent out the property whilst waiting to sell ifbit is suitable for renting. Your executors would have to do a tax return for the rental but at least the council tax is covered etc

@CBradshaw absolute chancers what they do with the house after they buy it is their business but it it both insensitive to mention that when it was your fathers house and also if they can’t afford it then they should fuck right off

How long has in been on for?

Just reiterating what everyone else is saying.

There isn't a 'fixed price' of what any house is worth.
You put it up for what you think it is worth. People wanting it will offer what they want to pay.
Often people will come in with a low offer to test the water but might negotiate.
Of course what they want to do to the house afterwards isn't really any of your concern but they will also see any empty house that will be costing the vendors money to keep empty (plus stress and work), so they will, quite naturally hope that you will want to get things wrapped up quickly and might be prepared to accept a lower offer.

You don't have to, but they are absolutely entitled to try and see what your response is.
The longer it is on the market (as in months and months) the cheekier the offers will get as people will start wondering what it wrong with it.

Anyone buying a property will want to get it for the lowest price they can (I'm sure you and your siblings wanted to, too?). Anyone selling wants to get the highest amount they can. One of the deciding factors on what compromise is reached is often how urgently someone needs to sell.

How long has the property been on the market?. You say that it has been well maintained, but is it very dated in decor, kitchen and bathroom fittings etc. and how old is it？Will it need electrical/heating upgrades soon or is it needing none of these things?

Not many people want a rental that could be sold in three months, special situations rental maybe but it would probably be a knock down price on the rent, basically house sitting? Not sure avoiding double council tax is worth the risk of a tenant not leaving/paying either?

I always think when I hear this excuse for lowering prices is why should I pay for your choices. The house was priced as seen.

Thanks for all the thoughts. It is slightly unusual layout, but nothing major.

I realise not everyone will like the house like my parents did. I was just curious to get some feedback as me and my siblings have never been in a position to buy (or sell) a house before. So this is all new territory. I would be willing to drop the price a bit, but my sister is adamant we get as close to the asking price as possible.

A friend said that we are not going too get as many viewings or offers as other houses in the area - as there not lots of other houses as big as this in this part of the town. A few 3 beds have recently sold for between 650 and 700, and they have a much smaller garden and driveway.

It has been on the market for 1 month, so not too long.

It’s only worth what someone is offering to pay. You can take an offer or hold out for a better offer but remember you are incurring costs for every extra month it’s on the market

People are coming over as more and more entitled and to tell you that because they want to move a door or whatever has no bearing on the price paid in reality. That's their choice and no, you shouldn't pay for it by accepting a lower offer. Saying that, 10% lower than asking price is good unless you're selling a very expensive property and I'd take Estate Agents words with a pinch of salt too - after all, it's their commission!

The trouble is the people whobhave looked so far do think it's major. Enough to consider buying a house and then undergoing the building works to rectify it. It matters to them.

Of course they can offer less if they want to for any reason. I meant that if a house is put on the market with no mention of the serious damp problem for example, and the problem is discovered during the survey, it is reasonable to ask for a reduction. But I admit I didn't say that!

The online portals are pricing it for 4% to 11% higher than it is on for. I know these are only a guide, so we went with the estate agents valuation.

One if the bathrooms could do with updating, but everything else is ok. It's not ultra modern, but it's also not dated.

Op I don’t envy you making this decision, especially with the budget looming. If you refuse the offer it’s possible the market will tank and you will get even less than the offer. If you sell it now, it’s likely you may always wonder.

I would keep it on for another month and see what happens. It’s likely the buyers offering may still be around, but it is a risk.

We live in an extremely expensive and desirable area and nothing is moving here. I think you are lucky to have any offer at all tbh. If you can afford to wait to the early spring, I would do that.

Eh? An estate agent will often ask a buyer why they don’t want to proceed/offer higher. If that is their reason, it makes sense to say so.

We offered low on a house as FTB because the kitchen was pretty dated and we wanted to have budget to change it. The sellers said no, as was their prerogative, and we bought somewhere where the kitchen was more modern.

Pretty much. I was thinking aloud. Bad idea on social media.

You will only get what someone is prepared to pay, but it does seem to be that many prospective buyers expect you to effectively pay for changes they want to make

10% isn’t much - I wouldn’t have declined the offer - I’d have kept ‘it open’ with them and waited to see if any more offers would come in before formally accepting.

It is a tough market at the moment and personally I’d cut the losses and sell it and then you don’t have to worry about any further maintenance or expenditure of the property. With it being in the winter months, you’ll still to ‘heat’ the property so no damp issues occur… you’ll also need house insurance irrespective of whether it’s empty or not. I know it can be emotionally tough selling the property of a deceased relative but at this stage I’d be wanting to get a disposal on the property and the 10% offer below asking seems more plausible than others…

I’ve known offers of about 25% - 30% below the asking price…. To be honest, as a property investor myself and a a landlord - a purchased a property back in about 2006 - was on the market for £130k, I offered £95k and managed to negotiate it to £97,500….

10% below is a good offer, I’d be taking it - obviously you have to liaise with any other beneficiaries of the will first…

Buying a house is a very personal thing. People have every right to offer what they want to pay for the house. If you don't want to accept the offer, that's fine too.

Sometimes these are the hardest to sell. "Good but slightly old fashioned/not to my taste" is harder than "everything needs replacing and it's priced accordingly"

You have to factor in people’s expectations. Newish kitchens and bathrooms are standard, carpets in excellent condition and not old, tasteful and neutral decor in near perfect condition. Good quality fittings and furnishings. Gardens that are well maintained. Just okay is usually not enough.

People are far more likely to offer near asking prices for beautiful interiors.

A month isn't long so it's definitely possible that you might get better offers.

Having said that, I wouldn't hang around too long at present and would try to negotiate if I had a buyer that had the funds and was keen. The economy is in a bad way and sentiment has fallen and there is no hope of things suddenly improving. It's possible that you may have a bit more interest after the budget, but that's an unknown at present, it could also make things worse.

There was another poster on here in recent months who was also trying to sell a probate property. She had a decent offer (can't remember the exact % off asking but better than 10%, from memory) and her brother insisted on declining it. She was urged to take it or negotiate by the majority of posters but lost those buyers. She had another thread recently, saying that they still hadn't sold despite two reductions and was now thinking of going to auction. You are in a better position as your house hasn't been on the market long so you have a good chance of better offers, but just don't be too stubborn wrt offer prices (your sister in this instance).

So, I love properties and am currently mid renovation but always keep an eye on Rightmove just in case. There are a few properties in our area that have been on for months/well over a year and they are all properties that need to be modernised/updated and are simply overpriced. A lot of people will look at a property priced at 750k that needs 100k spending on it and wonder if it’ll ever be worth more than £850k and if the answer is no, they won’t buy it. Most people will even want to make a profit (because otherwise why put yourself through all the stress of renovation?) and I think this is what some estate agents don’t take into account when giving valuations.