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.

I agree totally - that’s what my FIL bought - but yes at 10% off initial asking price and the one he sold was exactly the same and he got 10% less. Nothing wrong with either, both in good order, just slightly dated .

I honestly think the days of making profit on "flipping" houses is over.

If it’s only a month I would certainly give it a bit longer, but if you’ve got several of you running this sale, none of whom have ever sold before, that’s a nightmare for the buyers. Maybe try and have a meeting of you all and discuss possible scenarios. Look at the real costs of keeping it empty, including the house deteriorating. I’m wondering if you’ve all started eyeing up the houses you want - can’t blame you for that. Have you had to pay inheritance tax on that valuation?

The trouble now is that even quite straightforward jobs cost huge amounts and are hard to get done, so people will ask for big discounts in a buyers market. The good news is that you’ve had two reasonably serious offers in a month - I would certainly give it another bit of time.

Yep - I bought a nineties palace last year. We are renovating now and then in 20 years when I sell it will be dated again and I’ll have to take the hit but I don’t see the point of renovating ( cosmetically) to sell. May as well take the discount and let the buyer do what they want and in the meantime enjoy my own renovations for the max time. DH and I enjoy arguing about what will be the avocado bathroom of the 2040’s.

“oh my god- look. Bifolds!!!!!”

or

”well we’ll have to get rid of the rainfall shower. How very 20’s”

🤣

How old is the kitchen/carpets etc? What we consider "good condition" for ourselves to live in can be more "needs completely gutting" for fresh eyes. Unless your father was really into home decor it's probably quite dated.

(Sorry for your loss btw xx)

I offer what I want to pay for a house, and that factors in how prime the location is and how much work I need to do to make it a house that works for me.

For example, I offered less on my current house as it needed an extension to be liveable for me. I was willing to pay £500k for a house that worked for me, so I offered £400k knowing the difference would pay for an extension. The seller was happy to sell at that price and so we bought it and built the extension. I wouldn’t have paid asking price for it as then I would’ve been stuck with a house that I didn’t like and couldn’t afford for make right for me, that would be a nonsense. The seller would also have been within their rights to say no though - it’s a business decision and you agree you don’t.

The valuation of a house is just what one person might pay for it. It’s not worth that to everyone. I wouldn’t buy a flat in London for £500k, even if it was a bargain, because I don’t want or need a flat in London…

@AllJoyAndNoFun , I'd be put off by both the bifold doors and rainfall shower.

"The valuation of a house is just what one person might pay for it. "

A mortgage valuation is what most banks will lend on it, that covers a lot of borrowers, cash buyers tend to undercut market valuations because they are less hassle for many sellers.

And that’s just the banks guess at what one person might pay for it? Plenty of houses are sold all of the time for more than the bank’s valuation.

Your under no obligation to accept any of these offers. Just wait till you get one you like.

Trades and building work are expensive, people are clearly factoring that in, I think you’re underestimating what needs doing.

Sure, but my point isn't about personal taste, which will obviously be a factor in every sale and purchase, but about dating because much as we all love to think we are independent thinkers, most of what we like is somewhat informed by fashion and what we see around us for sale or in terms of "inspo". I think EA's generally don't price in "well maintained but dated" very well, and that's possibly because it is hard to figure out what discount to apply when a house is completely serviceable but the decor is just unfashionable and therefore not aspirational (btw I don't know if that is the case with the OP's house but just a general comment).

I'll get bifolds because I like them and because I'm going to live here for 2 decades and will enjoy having them and I'm now at an age where the latest fashions in home decor are likely to become less and less relevant to me personally. However, in 2045, it is highly possible that bifolds will be akin to a huge corner bath with jets, pine kitchens, frilly pelmets or mirrored wardrobes in terms of people just going "ooh no. dated". So then even though I probably wont understand their loathing, I'll just have to accept that they'll be pricing in a partial bricking up and replacing with some tasteful timber French doors.

I agree with you on rainfall showers btw - I have a wall mounted one in the bathroom I use which I far prefer but it wouldn't be a deal breaker as relatively easy to fix. DH however loves them.

We had a lot of chancers when selling my late Aunt's house, with people offering 75K below asking, and even one at £100K below. In the end it sold for the asking price, so hang on in there.

A house in my parents street was put on the market when the owner died. Her daughter refused to accept offers lower than the price it was listed for. 3 years and 3 estate agents later she finally sold for 100k under the original asking price. In those 3 years there was unoccupied home insurance to pay, heating had to be left on so gas and electricity to pay for, unoccupied house council tax, garden maintenance etc. So much money was spent keeping a house empty because she had a fixed idea what the house was worth. Madness.

When I was at university there was a research student who did a test on freshers.

A large group of freshers who volunteered where split into 2 groups.

The university shop sold branded mug with the uni logo on for £12.99, the students where asked if the wanted to buy the mug with their own money (virtually none did).

The first group was give a free university brand mug from the gift shop, the 2nd group was not.

About 3 months later they asked group 1 if they would consider selling their mug and most would (most weren't even using it). They then asked how much for and on average they wanted about £10 for it as it sells for £12.99 and its virtually new.

They then asked group 2 if they wanted to buy group 1s mugs off them.

None of them wanted to pay £10 for a secondhand mug the first group got for free and that neither group had really want in the first place. A couple of group 2 said they 'might' have bought the mug for novelty value if it was more like £1.

It was a study into how people perception of value is altered by ownership. Was quite interesting really.

So are you refusing the "low" offers or going back with counter offers (of 3 to 4% price reduction you suggest may be acceptable?)

One upped their offer from 660 to 670 and wouldn't go higher. One offered 670 and said that is all he can afford

A house is only worth what someone is prepared to pay for it, is the bottom line. If that is 10% below what the estate agent suggested then it is what it is. You can hold out of course but if this has happened multiple times already I’d be starting to think actually you’re best taking AN offer before they start to tail off & reduce.

It is the bank"s statement of what they will lend for the property, it won"t vary much on similar house types in similar areas. People don"t overpay as much as they used to because they know a loss is probable and they don"t have so much money anymore.

Yes, that sounds terrible, really not worth it.

We are buying a probate property, well one with lpa due to incapacity. It was listed in July at 425,000 our offer of 365,000 was accepted three weeks ago. It was a cheeky bid but it was accepted. We will need to spend around £100,000 to fix it up. But it will be over 10 years. We wouldn't have spent more, we didn't have it.

I viewed a probate house that had been left empty. It was freezing cold and damp, the toilet had frozen and cracked and leaked down the side of the house, and pidgeons were living in the bathroom.

The estate agent didnt seem pleased and was barely holding it together.

If you think its worth more, pay to maintain it until it sells. Or pick the current highest offer and move on with your life. But empty houses depreciate fast if not maintained.

A house is only worth what buyers are prepared to pay for it.

For buyers, it’s a business deal, however emotional it is for you.

This is the problem, people looking at houses that are way out of their budget. Houses are priced based on how they are at time of valuation. People will always look at what needs doing or updating but if I didn’t need to desperately sell I’d just refuse any offers I weren’t happy with.

We have been and will maintain it - heating is on low all the time. And my sister stays once or twice a month whilst we clear the belongings (the house is almost clear now except for key pieces of furniture), as she doesn't live local. We have also kept the gardener.