Offering and negotiating advice - London, £1+m

[StillTryingtoBuy]

Hello, I’m looking for some help as I am unexpectedly in the position of being able to consider a move to a property way above what was previously my price range.

I’m buying in London and looking at properties priced £1.2m-£1.5m. The max I can actually afford to offer is £1.45m. A more comfortable price is closer to £1.35.

Does anyone know what the norms are for offers or negotiations at this level? For “offers in the region of £1.5m” for example will we have any chance of being considered if we offer £1.45m? Are there any useful ballparks, clues, any advice for negotiating at this level?

10% under

I would consider anything in the region of 90%+ of the asking price to be in the region of, so on £1.5m anything £1.35m upwards, and even that depends on house/market conditions etc

It’s a buyer’s market. Prices are falling but nobody knows quite what to yet. So a lot of listed prices are unrealistic and a lot of properties are being reduced if ambitiously priced to start with.

Offer anything you like especially on things that have been on the market a while. If the EA thinks it’s ridiculous they will say so.

Thank you! That’s really helpful and reassuring.

Estate agents selling in this range are usually pretty switched on. Having bought and sold in this bracket the biggest concern is do you have your ducks in a row with finances (eg are you in a chain). Vendors often accept lower offers for someone ready to go. Also depends on interest from other purchasers and how many houses are at this price point on the market right now - we offered the asking on the day it went to market and were accepted. Vendor threw in £50k worth of furniture because they were so pleased we didn’t haggle !

remember the new “wealth” / property tax coming in which IIRC will cost you an extra £5k a year - I’d offer £1.4, hope for 1.45 and keep it under the £1.5 tax band. Vendor will understand this.