How low an offer to accept in current climate?

[pruhen]

Our house has just gone on the market for just under £500,000. We had a viewing today and they told the estate agent that they like the house but wouldn't pay more than £450,000.

Should we go for this, do you think? - am a bit spooked by current predictions of market crashing again. House is in a fairly gritty bit of London's outskirts.

No they are bidding you in the bollocks.

If its just gone on the market can't you wait to see if there are some more offers? I wouldn't jump the gun and accept the first thing that came along.

The EA must have given you a valuation when you put the guide price together - what did they say it was worth (rather than the price you market it at?)

You're probably both right - in calmer times I'd just wait and see, rather than panic, but if prices plummet again we may regret it...

Cheggers - they said be prepared to accept £480,000, which sounds sensible.

Do you have to sell? Because your reasons for wanting to move play into this. If you have to sell the house in the next say 2 months then you may want to consider low offers (although this looks too low and probably only a starting offer) but if you are in rush, I'd hold out for the 480,000 the estate agents reckon it is worth.

We need to move by August, so we can't hang about too long...

they are probably expecting you to go back with a counter offer though surely? can't you tell EAs to tell them you won't accept less than 475, see what happens?

I'd hold out for a bit longer and for something closer to 480. Prices are not going to crash overnight. Where we are, houses that are well presented are really holding their value and selling quickly still.

also, depends how much equity you have in the house and what you've got your eye on to buy I guess.
Congrats for getting an offer so soon, I hope it works out for you.

Really helps to hear such wise words; we'll hold out for a bit and see what comes, I think.

Back again for a bit more advice! That first mention of an offer never turned into an actual offer. We've had a handful of viewings since but no offers.

We're now two weeks into a four week contract - thinking about getting another agent in once the contract is up. Will also drop the price if the agents think that will help. Does anyone have experience of going with two agencies? I know commission would go up, but tbh it might be worth it if it gets things moving...thoughts?

Congratulations on your offer. Depending on the urgency of your situation, and the affordibility of your move, counter with 480K They want a bargain and if they go for this, be prepared for them to drop again at the 11th hour. So, you need to have in mind your bottom price to make your plans possible. Don't panic, "but a bird in the hand is worth two in the bush" as the saying goes, avoid chasing the market down and lingering on the market. All depends on what you want/going to. Good luck.

We have always gone with sole agency, they are supposed to work harder for you. It's only been two weeks, try to relax. Go with your instincts.

Thanks Chatelaine. Sadly that first suggestion of an offer hasn't materialised, but you're right, we shoud give the estate agent a bit longer. Am very keen indeed to avoid lingering on the market! What is "chasing the market down"?

Chasing the market down is when you are forced into (repeatedly) lowering your price by the market. If you can afford to achieve what you want to do, decide on your bottom line and move on once you get a firm offer. You are clearly not at this stage yet. We did this when others lingered on the market, stubbonly fixated on what they percieved to be the property's value and have stuck.