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.

Nice garden space, thinking they knew better about the value was a mistake though?

https://www.telegraph.co.uk/money/property/house-prices/britain-housing-market-drowning-in-discounts/

That's the one @KeepPumping.
Even after 2.5 years of their house not selling, they still don't want to reduce more to get it sold and think their price is 'fair'. Meanwhile, they are stuck with two sets of bills at age 87. 🤔

Yes, they should just be enjoying the garden probably, not trying to gouge more wealth from a house. The offers could go a lot lower after the budget depending on what gets announced?

Thanks for all the comments (and the condolences) – I haven’t been able to keep up! 😉 Lots of useful things for us to consider.

Probate has been granted, so there is no wait for that.

The kitchen and bathrooms were pretty new when my parents moved in. So although not ultra-modern, they are in good condition. The whole house has been redecorated in the last few years, including most of the carpets being replaced. After clearing the house of belongings (only key pieces of furniture left), we have thoroughly cleaned it, and we are keeping the garden tidy.

Do people factor in the size of the land too?? It has a large (very private) rear garden, and the front garden is similar with parking for 5-6 cars.

We’ve had an offer today for 685 – 8.5% below asking. We’ve asked the estate agent to see if they can go any higher. Someone else is also interested and may put in an offer once their house has had some interest (they have only just put it on the market) – they indicated that they are thinking of around 700 – 6.5% below.

My siblings have agreed we can accept an offer between 4 or 5% below asking price. So, there may be room to negotiate.

If the offers are still a lot lower than we would like, we may take it off the market until the spring.

Glad the thread has been useful to you.

there's a lot of good advice on here.

Very pleased to hear that you've agreed with your siblings on a level of offer that you can accept. I think that Rachel Reeves' upcoming statement is likely to affect the housing market, as will the budget, so you can only hope that you get a good offer from a very committed buyer. If so it needs pushing through to exchange quickly! It's probably worth filling out the forms from the solicitor about utilities, fixtures and fittings in advance, to try to save time if you do get a decent offer.

I’d take the offer…this budget is only going to repress the market further. You’d be mad to wait for spring when the middle class has even less money. You’d could easily end up 15-20% below.

Thing is 'good condition' and 'usable' doesn't mean anything now a days.

People are usually either looking for a bargain project to make money on or do up to their own taste or a perfect turn key property they need/want to do nothing to, anything in the middle languishes.

Good kitchens can be solid and practically last 3-4 decades easily if looked after but they are also 'out of date' and 'old fashioned' in under 10 years.

This is the problem many fall into, they think 'well nothing NEEDS doing, it was done 13 years ago so its not a doer-up' but it factually is a dated house. Even one fully renovated in say 2018 in full grey carpets and brilliant white walls and sleek lines and glossy kitchen units as was the style of the 2010s etc... is already 'dated' now as trends have swung the opposite way).

Dated no longer means not updated since the 80s, we live in a fast fad/fashion world. So 'not modern' is a problem for many even if still completely functional.

Houses in good condition, updated since 2000 but not newly refurbished to the current style are sort of the death zone - not old, not new, not anything.

Most buyers will wait for the budget then adjust their offer, can"t see anyone allowing themselves to be rushed now.

Easily, or even more depending on what madness gets announced.

Is it fair to assume that you and your siblings have not sold property before? If so I strongly second the advice to talk to older friends or family who have been through this routine a few times.

Speak to your estate agent and ask why they are sending viewers whose top price is nearly 100K below your asking price.

Check out all the likely bills per year to estimate the monthly/annual run cost whilst empty, including things like boiler servicing. Some LAs allow 18 months before reapplying council tax, others only 6 months. Some implement double tax on empty properties after 12 months paying on an empty property, others do not do this. Also check your buildings insurance situation - have you confirmed that buildings insurance is unaffected so long as the property is visited regularly or have you confirmed this with them so that they know the situation? You may find contents insurance is restricted. When you know the run cost you can consider how long you want to sit with it on the market.

People making low ball offers to pay for their extensions is just silly when the house is basically in good order. Negotiating due to adverse survey on roof or damp is reasonable.

The market is incredibly patchy. Good houses with large gardens in a “good” area still go fast around my way, flats not so much. Other areas flats will be the hot cake properties. Is the house in the catchment of a popular school, on good commuting routes etc? What are the sales points for your particular house and is the agent maximising them?

Oh and remember - the best sale for an agent is the fast sale, not necessarily the best price sale.

A 10% reduction is about right. When we sold my DGMs house it was lovely but dated and the layout was wrong for a modern family.

So we have accepted an offer today from a cash buyer: 720, which is a 4% reduction. Glad we waited, and didn't accept the 10% below offers.
Now to start with all the paperwork!

Thanks again, for all help and information

Great news.

Fingers crossed it goes through for you.

Great news. 10% was ridiculous

Good news! Hope it goes smoothly for you.

Delighted for you. You were very sensible. You knew the house was worth more and were patient.

So pleased to hear about this, so much for the nay sayers who said 10% was normal - £50,000 is a lot of money, despite what people were saying.
It's obviously a very nice house or your parents wouldn't have bought it when they retired. Hope that it all goes through smoothly for you.

I've been following this thread with interest and I am very pleased for you.