what to offer?

[GloriaMumble]

Have found lovely house. Its been on the market for 4-5 months at the same price and I have a feeling the sellers are getting a bit desperate (its also on market to rent). They have so far had no offers. There are no other comparable houses around and I can't compare on what it sold for as its in a v small development and recently been completely renovated - it was completely uninhabitable when they bought it.

So, do I offer 20-25% below asking price? Even if that would mean £250,000+ below asking? It just seems unreasonable to offer such a huge amount below (afterall the difference is the whole price of our house 6 years ago!).

Do you think that working out how much to offer based on % off asking works for expensive houses - I have no feel for the property market at this level, we can only afford this place because of an inheritance so its not like we're selling a house at a similar level.

not sure if that suggestion was to me Hanaflower? If so, don't fancy renting at the mo - I suspect all we'd end up doing is renting until the economy took a turn for the better and then paying more to buy as well as having lost the rent we've paid!

anyway - update - offered 20% below asking, estate agent said sellers v unlikely to accept but I said the offer was there, we're a cash buyer, I'll wait and see what sellers say... estate agent due to get back to me today, what now? If (as seems likely) the sellers do say no, do I ask them to suggest what they'd accept and make an offer a bit lower than that or do I just up my offer a bit?

It's who blinks first.
They're desperate
estate agent WOULD say that

I'd leave it a couple of days and then go back with a small amount more

Agree with WWW. I'd say to the agent that I'm view of todays Nationwide figures showing a 1.4% fall, you really don't want to increase your offer, especially as when you add inflation in, prices are about 20% lower than a year ago,with no indication of when the monthly decrease is likely to slow down.. Then leave it for as many days as your nerves can stand and put a small increase forward, saying that this will be your final offer and remind them that if they do accept the whole thing could be wrapped up by Christmas.

However it is very easy to say all this when it is someone else doing the buying and you are not involved, but do try to hold your nerve as much as possible.

Ok, good advice, thanks. Good God though, i hadn't thought we could be in for christmas - thats only 8 weeks away! only house i've ever been involved in buying (current one) took 3 months.

I don't want to be moving on Christmas Eve The the current owner has small children so I'm guessing they wouldn't want to move on Christmas Eve either.

No word from estate agent yet...