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.

I'd thought that too, and I'd also be using that as a chunky deposit and taking a mortgage to get a higher value property, not for debt but for future value. there is a lot odd about this post!!

I think that we all agree that each of us, as The Little People, don't have much influence on the market, whether we are the seller or the buyer.
But my point still stands that the current owner of the house is the owner of the house. And things will stay that way unless/until either something drastic happens (e.g. three D) or someone gives them enough money reason to change their mind. No amount of foot-stamping by a frustrated buyer is going to force a sale.

Buyers can have extensive "wish-lists" but they may need or someone in their chain may need mortgage debt to act on those wishes, that is getting more expensive so houses have to get less expensive.

Houses don’t “need to get less expensive” buyers have to choose what they can afford, eg a slightly lower valued property.
I don’t go shopping and say to an assistant I want to buy that dress but at this price because I haven’t had the pay rise I deserve, I choose a dress I can afford!

the reality is perhaps fewer buyers, that’s a totally different argument.

This isn"t really logical because sellers are dropping price to sell all the time!

Some always have and will. Others are still achieving over their asking price, and this will always happen.

As for people dropping prices all over the place, a lot have out mortgaged themselves so NEED to sell quickly and so will lower the asking price to bail out or over extending themselves. That comes back to buying what you can afford.

Houses don’t “need to get less expensive” buyers have to choose what they can afford, eg a slightly lower valued property.
I don’t go shopping and say to an assistant I want to buy that dress but at this price because I haven’t had the pay rise I deserve, I choose a dress I can afford!

It's not really like that though- more like if you wanted to sell a dress on vinted and want 1k for it. People are only offering you £500 max. You can either take the £500 or not sell it.

Of course the current owner of the house is the owner. I don't think anyone can argue with that!
I don't think the 3Ds are at all drastic though. They happen every day and these are the sellers that actually make the market. The other kite flying sellers can get stamp their feet too but the market will fall if there are no buyers available at desired pricing and others need to sell.

It's a balance in reality. If no one is buying the expensive dresses, they get reduced in the sale and more buyers will be tempted at the lower price! The same thing happens to the houses that aren't selling, apart from some unrealistic sellers who don't actually need to sell.

You seemed to have confirmed Keep Pumping's point. If the over stretched sellers now need to sell, they will lower their prices!

Exactly. It's a balance. The unrealistic sellers just don't sell. Those sellers who will accept whatever the buyers will pay make the market.

Some sellers will move on price but probably not that quickly and some won't at all regardless of whether their house is over priced.

You've offered and they've rejected your offer. Can you afford to offer any more? If not walk away but tell the estate agent your offer still stands. If it doesn't sell at some point they might drop the price and you can reconsider.

If you can afford to offer a bit more and you really want it go back with a counter offer and see what they say, maybe 230k.

Thought that was right thing to do. Homebuyers survey to assess property condition, and RICS to get assessment of value. Again, new to this.

😂 Guess you don't like facts and logic...

Sadly inheritance..

Well you are a cash buyer so no you don’t need a survey, and you know better than everyone else anyway so you’d just be paying a surveyor so you have somebody to criticise. That’s not a good use of funds.

another valuation, your just wasting money now. Are you happy to pay, the asking price, yes or no?

I've increased my offer to £433k (£10k increase), still waiting for response.

Also appreciate that nothing probably "needs" doing, as it's functioning (eg. bathroom is 20 years old), but just needs modernisating.

Exactly, the idea that homeowners can bolt all the doors and keep their high house price in away from the nasty market outside is just fantasy thinking.

You definitely need to get a survey. Not going to give examples but not getting one can be an expensive mistake.

Yep, definite mistake not to get one.

Update: Negotiated and finally agreed on £435k a couple of days ago.

Thanks for helpful advice everyone.

That’s great, congratulations. Thanks for updating the thread with the outcome!

Great news, get a thorough survey done and then if there are any issues you can adjust your offer. If no issues - happy days. Well done for not just blindly paying asking.

Well done. A successful negotiation is not about beating the other side, it's about both sides coming away happy.
Enjoy your new house.