How should negotiate on property purchase?

[foursquares]

Hi. First time buyer, appreciate some advice.

Saw a property we like, listed for £450k. It's been on the market just under 3 months. It's had one offer in first week, which was rejected by seller - I don't know amount.

We've recently offered £423k (6% under asking), which was rejected. According to agenct, seller looking for close to asking price.

Given that it's been on for a while, we're in a buyers market, and heading into post-summer period...couple of queries :

1. The asking price is overpriced right?
2. How should I approach negotiations?

Thanks in advance.

In the first few weeks you often get the buyers that have been hanging around for a while who are pretty picky and are finding it difficult to find anything they like. In reverse as a new buyer you get given all the dogs that the EA can't sell.

Tbh this is largely irrelevant. What you want to do, is very different to what NEEDS to be done. Their property will have been valued in accordance with it's current state.

Are you a serious buyer?

let me clarify: If you can’t find what you want in your time frame you’ll stop looking for a bit then start looking at photos again next year.

You never know when the right property for you will go for sale.
The more you view the more you will identify what’s important to you and also how to assess what you are happy to spend on what.
Photos and floor plans help, the reality is normally quite different to an actual viewing.

if you think you will look at photos every 6months for a few weeks at a time and buy a house that way, good luck.

Don't get so frustrated, bad for your blood pressure. It's simply a financial transaction with nuances. If a seller has a genuine floor price, they could have put 'offers over'. The fact that they didnt means it's open to interpretation.

If you refer back to the original post, I posed the question "is this overpriced? ".

I think still think it is based on data, not emotion..price is determined by the demand at a price point. 3 months in with no offers suggests very little interest at that price point.

One could reasonably argue that 3 months, especially including summer period, doesn't allow you to gauge demand accurately. But at a certain point in time (5, 6, 7 months, etc), it's overpriced. Remember everything sells as right price.

Thanks everyone. Appreciate you taking time to share your experiences and advice. I'll update on what happens 😀

Yeah, you really really don't get it, but as another poster pointed out, you are arrogant enough to think you have it figured out. I have sold many many properties and in all cases the buyer not being a twat was far more important to me than the final headline figure. Transactions fall through all the time and they are generally the ones where the buyer is trying to pay as little as possible and the seller is trying to get as much as possible. Succesful transactions are often a lot more nuanced.

I'm always impressed at being told how things work by someone who has never done it before, I admire their chutzpah.

I think there’s some sense in what the op says but if a buyer is not going to negotiate, they aren’t. Another thread recently highlighted a DH steadfastly attached to a valuation so a buyer walked away. This seller might be similar and not aware of trends or just demanding the price they want. Negotiation is normal but if one party won’t, then it doesn’t happen.

@foursquares The key info is sold prices elsewhere. This determines if the price is in the right ball park. It might be too high as it has no offers but you don’t know what’s putting others off and it might not be price. Could be all sorts of things. So don’t get hung up on 3 months. Go to your max and no more. If they don’t take it, look for somewhere else. You have tried. Often buyers make excuses when they pull out but often it’s a bad survey or money not available. People are not always genuine with excuses either. So offer what’s reasonable and walk away if they won’t budge.

The seller might not be that motivated to sell. The price may already be competitive.

Love it. With one response, you prove everything @Tortephant was saying 😂🙈

That's very noble of you. Thanks for the heads up. 🙄

Yes Harriet. Perhaps take 15 seconds to read the response. Being called "arrogant" for having a different (perhaps incorrect) viewpoint is uncalled for..

And again!! You’re a doozy 🤣

@harriethoyle offers over is a normal selling position. The op is correct. It’s often for homes with an uncertain value but the seller usually has a floor price. When a general price is quoted, most buyers expect some negotiation. Personally I just want the money! As long as the buyer has it , fine. I’m not expecting them to be wonderful and meeting my expectations in every way. The op should try a higher offer if the market suggests she should. If it’s definitely highly priced, consider what should be offered to make it viable.

..and you were clearly in the toilet when God was giving out the brains. On that note, let's part ways. 😉

Amazing. The OP who keeps on giving 🤣 Personal insults are never a good look 👌🏻

@foursquares the point is that you asked for advice and then have proceeded to tell everyone that’s offering it that you know better and there is a very black and white way to buy a house. TBH you lost me when you said if you couldn’t move in by November you’d stop looking until the spring. I assume this is a goady post rather than genuine.

Can’t wait until a sellers market returns, because it will! It always does.

You do realise the vendor has probably had 3 estate agents around to value before plumping for one ? In my experience most valuations are similar so just a question of picking an EA to engage.
Why do you think you know more than the EA?
Your wants aren’t the same as needs. Either pay the price or move on. If I was the seller of this house, I would refuse to sell to you on principle. . You sound unhinged.

We are nowhere near a buyers market so are you prepared to lose money if interest rates go up? Are you paying cash, otherwise a mortgage lender will tell you how much it is worth.

An EA valuation is as meaningless as an asking price, the only valuation that counts is how much the buyer wants to pay or how much their mortgage lender wants to lend.

Great advice lovely cactus...

Yes, am paying cash, but was planning to get homebuyers survey and separate RICS valuation.

Wasn't intended as a goady post, but didn't anticipate "frustrated", "angry" or "angry" comments from those who feels their properties has been slighted from potential buyers in past..