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.

Oh yes, she's super supportive of getting young people into debt in an attempt to prop up the massive time bomb that is the global financial system. I can see a lot of bank failures, although the small ones in the US, etc would be more at risk.

Yes I comp agree. It could prop up the housing market for a few years though, belying the disastrous economic position the UK is in. After all, from the perspective of the Govt, the next election is mid 2029, latest, so if they can show a better market by then, that will help in all those marginal seats.

Sorry to digress, OP.
I think everyone is agreeing that you need to inform yourself, not rely on agents to tell you pricing levels, ask informed questions, have the guts to dump agents who aren't performing, and the guts to deal firmly with lowball offers or anyone trying to get a bargain.

Worth mentioning in passing to the agent that you will be taking it off if you don't get better offers coming in, just to make it clear that probate sale does not equal panicked sale/bargain basement, in this instance.

The average drop across the country from asking to sold price is usually 2% however currently it stands at 4.5% This % has been reducing since April this year 10% is a big drop ! Ignore any EA or buyer that tells you otherwise

But this doesn't take into account reduced asking prices. If your final drop is 2% of asking but you've dropped asking by 8% because you had no interest at first then the statistics don't reflect the actual gap between asking and sold!

This - every time!!

As an average the %s given do reflect initial decreases by the seller because they are averaged
ie
Also taking account of those achieving the asking and also those that sell for more than the asking.
( Yes, some properties do in fact sell for more than the asking )

The figure as an average reflects all variables

We moved last year! We sold ours for 850 when it was on at 925. The agents told us that on houses in our range, buyers either want a project or want a pristine, newly done, show home with navy wood or grey wood 30k kitchen etc.

Our house was well maintained-we had a 5yr old oak Magnet kitchen with black granite worktop and a bathroom put in in 2004. None fitted the brief so he told us we’d need to be very open to offers. Our carpets were less than 5yrs old but a pale brown and the EA said only a pale grey/silver would do for buyers. So when you say it’s all fine, do you mean it’s 10yrs old but well kept by your parents? Because, that’s not what buyers want. They know they’ll want to knock through, put in an ultra trendy kitchen, high quality vinyl on the floor, funky bathrooms with black taps and shower cabinets etc.

Basically, your parents house being presentable is no more valuable to them than everything being 40yrs old or worse as it’s all got to come out as soon as they complete. This is why they are offering low because there is zero value in it being presentable.

Good luck but 10% off isn’t that unusual. That would be my first offer even in a perfect house that needed no work. 🤷‍♀️

I couldn’t agree with you more- people either want a total bargain well below asking price ( and I mean 10 to 20% off) that they know they are going to change a lot and add value to , OR will pay top whack for something they decide they need to do nothing to - that means no loft conversions, extensions, boilers /plumbing, walls out , roofs, decor, new kitchens /bathrooms and carpets/flooring - anything involving building work costs ludicrous sums these days .

the fact that somewhere is well maintained and in good order but just not someone’s taste these days or even slightly dated means you might struggle to get asking price regardless of what you think it’s worth- the fact multiple people have offered in the same ballpark for OP means to me it’s going to be above - it’s not anyone’s taste ‘in that price bracket ‘ so far - so really depends if OP wants to hang on - to be honest the fact the budget may change certain things at that price level won’t be helping either , so if they can hang on till maybe late Feb without dropping then it may be worth the punt if they don’t need the money immediately and can weather the costs

Actually,@TheBlueHotel is right here. I think you have got the 4.5% off asking price figure from Zoopla. I've actually asked the chap who collates the figures this question and they measure the % off from the final asking price, when the property actually goes under off. So if it has been reduced by 10 or 15% from the original asking price, that is not included when collating the average. The average from initial asking price will be a lot higher on average at present. A bit like Rightmove's 'asking price index' only includes the initial asking price and ignores the reductions.

@newnamehereonceagain impossible to know exactly what will happen and when but I can't see things going well for the economy and am therefore negative on housing market health, despite all the attempts that will be made to prop things up.

Such a thoughtful, and helpful post @MeandT .
So nice of you to take the time to write all that out.

As I said.
The figures based on tracking tens of thousands of properties are averages and take account of those that sell for the asking and those that sell for more also.
Just requesting data on those that sell for less than the asking will give a greater % decrease.

The figure stands at 4.5% ( earlier this year )

OP has stated her property is priced in line with others currently
If this is the case then 10% is an excessive decrease and having sold a property on average every three years I wouldn’t entertain a 10% reduction on a property that does not have any problems.

a low offer because someone wants to do work or put in extensions ( as is OPs case) is their choice.
It’s not something a seller should subsidise
Its not something that devalues the extg property value
Its not something a seller will ever have ‘enjoyment’ of themselves

I don't think you have understood the point that @TheBlueHotel and I have made several times. An average reduction can either be calculated using the initial asking price or it can use the % reduction from the final asking price, when it actually goes under offer. Clearly, if you use the former figure, rather than the latter, the percentage reduction is much higher than the 4.5%!

In @CBradshaw's case, it may well be that her property is priced realistically relative to those that are selling. If it sells soon for asking price and completes, it would demonstrate this. An average is just that, an average, not a specific % reduction that is relevant to every property. The buyer can given any reason they like to offer lower, or give no reason at all. In the end, the buyer dictates the market price, not the seller.

Last comment from me - the dark days of November are not, in most years, an auspicious time to sell, especially not for a family house (parents are frantically busy, children have a huge amount on at the end of term etc).

However, whenever it does sell, I think we're all agreed, OP, that we wish you the very best and have everything crossed that you end up with a good result.

I understand the process of calculating the price
I understand earlier asking prices are not accounted for
I know what averages mean
This is part of my work as an Architect for nearly 30years
So, yes, thanks. I understand

We viewed a (modern) house that had a kitchen and dining room next to each other but no eating space in the kitchen. We didn’t buy it because it was top end of our budget but we’d have wanted to knock through, the estate agent said they’d had a lot of similar feedback and we got a call a month or so later to say the owners had done the work themselves.
I think it was more financially sensible for them to do it and keep the price as they wanted it and not take a drop in price for the status quo, it sold for asking in the end I believe (we didn’t proceed for other reasons).

I work in property and 10% below is fairly average for probate property at the moment. If it's anything short of newly done up - buyers aren't going for it.
If it gets to six months and it's not sold then accept the offer. Your costs will start to mount up and it won't be worth it.

Buyers are more likely to make much lower offers on probate properties.
On the assumed basis thise inheriting just want to get rid of the property quickly This of course has nothing to do the the actual value of a property.

As someone who’s bought numerous probate properties I don’t find that holds true. It’s actually because probate properties are generally in poorer condition.

While offspring don’t necessarily have an attachment to the property they generally want to get those most they can and can be unrealistic about what it’s likely to achieve, equally it’s the executor’s job to get the best price for the estate.

I wouldn't accept more than 5 percent discount. Just say no and hold out.

I am sorry for your loss. We are in a pretty similar position with house in the Home Counties and have accepted an offer of just over 92% of the original asking price, although I think we could have got slightly more. House well presented, aids removed, but house not staged; if we had more time / energy would have had the mahogany garden furniture and parasol out etc. The buyers say they are willing to wait for probate. If they try to drop the price or mess us about we will remove it from the market and relaunch in the Spring with probate agreed.

I am sorry for your loss.
My advice as a seasoned buyer and seller over the years is to take the house off the market for now.
Buyer confidence is low but you have a desirable house in a good area.
I would put it back on the market in the spring when Xmas is out of the way and people turn their thoughts again to a new house.
I wish you much luck. Selling (and buying) houses is a stressful business.
We had to do it recently and, nearly a year later, after it taking some 7 months, I'm just getting over the experience!

You’re mad to just refuse. If you’re within 10% of each other and the buyer is proceedable then counter!

'Nothing wrong' doesn't really describe the vibe of the house.

If buyers are all going under the asking price, are they looking at dated carpets, wallpaper, sad kitchen, creaky bathroom, and an overgrown garden, or a house where they could move in on a Friday and have friends into for a housewarming on Sunday?

I think in this climate a 10% offer under is normal.

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

Agree

I haven't read the whole thread, so apologies if this has already been said. Has probate been granted yet? If not, I wouldn't even make an offer on the property, as I was once stuck in the chain from hell for more than a year. At the top of the chain was a house for which there was delay after delay in granting probate. The probate office were disorganised and no one could persuade them to hurry up. I wouldn't take the risk again - probate can granted fairly quickly or it can take many months.

Pleased to hear it! So does everyone else and they also understand about 'lies, damn lies and statistics'. It all depends on what figures you choose to use, what adjustments you make, etc.

On topic, there is an article entitled 'Britain's Housing Market is Drowning in Discounts' in today's Telegraph. Even The Telegraph have caught up with the fact that Rightmove is drowning in discounts in the last couple of years.

Anyway, good luck @CBradshaw!