Opening bid

[FrodisCapering]

There's a house we like very much.
It's not perfect but nothing massively wrong.
It's on for 900k (NW).
The highest comparable house nearby in terms of size sold in November for around 740.
There's a house within a mile away in for 850k and it's in good nice, with a massive garden and no renovations needed. It's an older house though. Almost 1000sqf bigger
Would an opening offer of 800k Ben cheeky in these circumstances?

How long been on the market?

Wait just clocked that it’s more than 1000 sq ft bigger than an £850k property within a mile

or is the £850k the property that’s bigger?

they is a VERY big difference

Not cheeky at all, no. Pretty standard to over-price houses by about 10% anyway to allow for any downwards negotiations.

The 850k property is bigger!

Also, ran I to a friend who lives a few doors down from it and she said she reckons theirs is values at 750k. This one is slightly bigger so I could get closer to 800k but I think they are trying it on!

Been on the market since the beginning of January

Go in with your cheeky offer.
It’s worth a punt and if they are offended I’m sure your EA will filter their swear words when she comes back to you.

From then on, make second slightly higher offer and after that if they refuse, your final offer.

Along the way try to establish what they might come down to and split the difference between your final offer and what they’ll be happy with.

I’ve just sold a place. My buyers were cheeky but in the end we negotiated and everyone happy.

I wouldn't describe offering 800k as cheeky exactly but they won't accept it so it is pointless in some ways.

In your shoes I think I would wait to see if it gets reduced after a few more weeks to 850k. If that happens it would be more worth it realistically to offer 800k.

Also you could ask the EA how they justify such a high valuation if you genuinely and honestly can't see how it's on at 900k.

These threads alway make me smile. Why don’t you buy the house on sale for £850k then? There must be something about this house that you prefer.

Far too any unknowns in this post! Be specific. Share details or at least be honest about the differences.
Why do you think the 900K house is worth 800k? or don't you.

Offer what you genuinely think it is worth and you are happy to pay for it. Be honest and explain why. If you are correct, that will resonate and you will get somewhere. If you are being cheeky with no basis for a low offer then don't embarrass yourself if you potentially want to buy through this agent, or indeed want to proceed with this property.

You can offer what you like. At the end of the day a house is only worth what someone is willing to pay for it. I think if you're going in 100k under the asking price though that you need to give some clear context as to why you think it's not worth 900k - because otherwise you run the risk of the seller just thinking you're not serious and a chancer, and they could instruct the EA not to take any further offers from you. It would also be wise to contact the EA in advance to ask them if they believe there would be any movement on the price as if they say: "Absolutely not, they have been very clear that they won't take a penny less" then you've no need to waste your time or theirs.

The bigger one is too big. The upkeep would be too much and it's a period property, which isn't for us.

It's because it's not comparable with any other sold house prices in the area for properties of similar size.

That’s irrelevant. On the basis you will have viewed a number of other properties in person you will have a feel for its value.

Depends if you are in a strong position. Under offer? Renting? Mortgage free? If you still need to sell they might hold out for more interest in spring

I probably wouldn't offer under these circumstances as it sounds as if they have over priced it and it is more likely worth around 750K based on comparables and your friend knowing the road well. If it has only been on the market a month, the sellers are highly unlikely to accept 750 at present.
You could have a conversation with the agent about is, say that you like the house but think it is over priced based on what you have said. They may well reduce it in a few months if they have no interest.

Sure, offer it, but only on for 5/6 weeks, they’ll reject it unless desperate.

the owner of a property of this value in the NW will have been advised by EAs that the sale unlikely to be quick because market is so small.

I think it’s too early for such a low offer. 100l is a significant amount of money.

Thanks, everyone, for taking the time to reply.
I think we will just have to wait. If it goes in the meantime, good luck to whoever buys it!

Sounds like they are kite flying. But that is their choice.

They may be prepared to wait for years until someone comes along with what they want. You simply don't know.

I would always offer what it is worth to me, no more, no less.

Oh we really do like it but I wouldn't pay so heavily over the odds for anything. Head over heart every time.

Period properties usually have a premium attached to them so maybe the one you like is overpriced? Unless - it has superb fitting, garden, kitchen and bathrooms. High quality has a premium too.

What is your genuine max budget? Is it £800k

It's a new build - well about 15 years old.

Genuine budget is around 900.

We have no mortgage on our house, plus substantial savings, plus family money.

@FrodisCapering So why is it more money than a period house? Is it a grand design or bog standard modern?