You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
Hi all,
I'm currently looking at houses, one in particular is up for 170k, reduced to that ammount in July this year.
The agent suggested the seller might be flexible, but how to you go about making a lower offer without looking like you're taking the mick?
I thought I might put in a cash offer of 160k, is that lowballing too much? or should I begin my starting offer a bit lower with a view to increace it a bit?
Take the mick.
Go as low as you like - they can only say no. If they accept your first low offer then it wasn't low enough.
FWIW, I looked at a house - it had originally been on at £450k then reduced to £435k. When we went to see it it had just been reduced again to £425k and the agent told me that he knew an offer of £410k would secure it. I offered £390k, eventually agreeing on £392k.
How much do you think it's worth?
How much do you think they will accept?
If you offer 160k, they will probably counter offer at 165.
At a guess, I would try £145k and see what the counter offer is.
If it's reduced and still not sold since July, then it's still overpriced.
How do you think it stacks up against other local places though?
Either this is in an area where there is plenty on the market and lots of choice , or its got special features that nobody wants , or both.
Would you ever have to sell it ?
If it’s reduced and still not sold since July, then it’s still overpriced.
Was just typing the same thing. I'd go in low and negotiate up a bit. Compare to recent sold prices.
Wait you've found a house in 2021 that isn't being sold for £10k+ over asking after a bidding war, wow!
How long has it been on the market for? How long on average does it take for houses, especially similar ones, take to sell in the area?
If houses go quickly then that would suggest they're not going to accept a big discount. If it's been on the market for 6 months then go something like £20 - £40k below asking price depending upon condition and how cheeky you are feeling and go from there. Offers don't have to be accepted so you can always go back with another one...and another one...and another one etc.
My mums hose was on the market for £235 which seemed sensible for the area and type of house conditions etc....they got us down to £210k in the end. there was some roofing work that needed doing, but not essential or leaking or anything, but would need addressing at some point in the not too distant future, so we basically accepted a lower nominal offer to about £215, then they took off the cost of the roofing work to get us down to £210k. But homes in that area were taking about 5 months on average to sell and we wanted a quick-ish sale. If we were in no rush we would have called their bluff and held out for a higher price. But don't think we could have secured that much higher price. The house did need some other minor work before they could have moved in but mostly cosmetic.
As always, you're NEGOTIATING not bartering. What can you offer in return for a reduction in price? You're seeking a mutually acceptable outcome.
Sounds like you could be a cash buyer and able to complete fast on that basis, so I'd say offer 15% less.
"I'm a cash buyer, I can complete fast with no chain or delays. Here is proof of funds. As a cash buyer with the ability to move fast, I'm looking at several properties, and will make a formal offer of £144,500.00"
If your first offer doesn't embarass you you're offering too much!
Both of the houses I've bought (in Scotland) we've had second views with the sellers present. During those viewings I've had a conversation to come to an agreement around the ballpark price with solicitors making formal offers afterwards.
So far worked OK
Agreed with andyrm. If you're offering them £160k then that ain't bartering.
Offer them 3 camels and a goat on the other hand....
Thanks all, I think 160 would be worth it but the asking of 170 a bit much.
Think i'll have a viewing and if all is good go in at 155?
“I’m a cash buyer, I can complete fast with no chain or delays. Here is proof of funds. As a cash buyer with the ability to move fast, I’m looking at several properties, and will make a formal offer of £144,500.00”
Ballsy 😀 mind you it's ben on the market a while, so I need a viewing to try to understand why that might be.
It's kind of a neiche property, but fully refurbed with a new kitchen with inbuild appliances, and a new bathroom. probably not what the average buyer is looking for, but as a single nomad, it ticks a lot of boxes.
Reality is that if it's 170k then i'm guessing it's north of the M4, and if it's been on the market for more than 4 months then it's not an area where they're selling out faster than they're going on the market, or a property that's just not interesting to the market.
All of that points to offering under, and probably way under as others say to get the ball rolling, 150k is about the max i'd offer to start, and i wouldn't be in a huge hurry to offer a second bid if that's rejected without a counter, or even with a counter, it's not like they can hit you with the 'well we have a couple of interested parties' line.
it's probably worth also working out what your plan is though, a property that's struggling in the current market might be a nightmare to sell in a couple of years, especially if there's a downturn, are you looking for a house for the long term, or for the present with one eye on moving, just the nomad comment might point to upping sticks for jobs/life/etc in the not so distant future, so a house that's a struggle to sell in the good times might be a ball and chain for your lifestyle?
Thanks all, very interesting...
I'm not looking to move any time soon if I buy, so it will be more a long term thing rather than flipping it.
I've never been in the position to buy a place before so it's all a bit strange!
I'm only in the position to cash buy as my dad died and left me a decent wedge, i'm currentley renting.
Is it a developer selling? They will try to play hardball as they know people get emotional over houses when they make an offer, but as other have said it sounds like it's not shifting so call their bluff. You can always up a offer you can't drop back!
Don't let emotion get involved at this stage! Over an offer (you won't offend them with a low offer, it's just part of the negotiation) or over the property if the first offer is rejected. It's only a house at the moment, it won't become a home until you've bought it and moved in!
Make a solid offer and be prepared to walk away/stand your ground if they counter. If it's been on the market for a while the ball is more in your court than theirs.
Do some research into sales prices in area - preferably on same street.
Where do you think house prices are going - up, down, sideways?
Ask estate agent how many viewings.
As others above...go low (145k), emphasise cash buyer status, if you're first time buyer keep that to yourself, ask about warranty/guarantees on recent work.
Have good look at roof from the street; tell agent you want to look in loft.
Ask for evidence that wiring/gas have been checked/tested - gas inspection certificate is essential.
Do doors/windows open and close properly?
Inspect all cupboards and built-in items.
Research what you should look for; if you view, go with a checklist of what to look at and ask about.
Estate agent is only concerned about commission - they are not your friend.
Good luck!!
It’s kind of a neiche property, but fully refurbed with a new kitchen with inbuild appliances, and a new bathroom. probably not what the average buyer is looking for, but as a single nomad, it ticks a lot of boxes.
Is no one else intrigued? Give us some more clues so we can go Rightmove sleuthing!
It’s kind of a neiche property,
Go really low initially.
That [offer] which doesn't kill you, can only make you stronger [in subsequent negotiations.]
Maybe.
We offered asking price on our first place, on the understanding that it was subject to survey.
they were too far commited once the survey came back with some significant issues.
Long story short, we got them to pay to have the whole house repointed and some rising damp fixed, which was probablt a bit galling as they had put up with the damp for some years.
We were totally upfront about it from the start though, and ime not getting it done when it shoudlve been is neglectful.
Definitely offer low, much much lower than you'd have thought possible. £145k feels not a million miles away and a good level to go in at. Lots of good advice above. I especially like "if you are not embarrassed by it then its not low enough."
The aim is to get a counter offer, which gives you an idea of how desperate they are to sell. Until that point start low and edge up 1k or 2k. I've done it on a 15 minute train ride before and taken 6 offers, each one edging us up towards the point where we were both happy. In that sense, the online "direct" companies that cut out estate agents are quite helpful.
Go way low and bump the offer up £500 a time on the house of that value. Estate Agents will get bored and tell you how much they'll accept.
Go low, when they counter offer, go back lower than your original!
I’m not looking to move any time soon if I buy, so it will be more a long term thing rather than flipping it.
Plans change, though. In 2 years, you may decide to up sticks somewhere else. As others have said, if it's not selling in today's market, what's the catch? Might be seller has an over inflated idea of the value or there's an issue with the house/location that could bite you when you decide to move on.
Great piece of advice I was given was buy what you can afford in the best area.
Have you looked at sold prices in the area and of the actual house , how much did the seller pay and when,
I liked at a house at £250k they had paid £190k 14 months earlier I’d asked what they spent on kitchen and what improvements they’d made etc and they were looking for a £45k profit for a few licks of paint
Didn’t buy it
Here is proof of funds.
How are you going to show that? I'd be inclined to say you can prove you have the funds and get the price agreed first. If you show a bank statement with £160k in - you've just given away your top price; if you show a bank statement with £145k it dilutes the story if you want to offer £155k later...
Like others I'd be wondering if its not sold in months how easy it will be to shift when you do eventually want to sell it. Sometimes that's the agent, the clutter, the decor, the owner, but sometimes the house is in a shit place.
To avoid getting emotionally carried away - always have the next couple of viewings/opportunities lined up.
It’s kind of a neiche property
Is no one else intrigued?
I am. If it is that niche you need to think about how easy it will be to sell, and you will want/need to sell it at some point.
Too many unknowns to advise on a number to offer, you really need to understand the local market - sold prices, current supply/demand, etc. Do your research and you should get an idea of how high/low to go in.
As said above though, it's a negotiation - you need to reach a figure that is agreeable to both parties. The advice about removing emotion is good, see this as a transaction or business deal, but also recognise that the vendor is also a person with emotions of their own. If they have a strong emotional attachment to this place (or are just plain greedy, doesn't matter which) then their opinion of value may differ wildly from yours, in which case it's unlikely you'll change their mind so just walk away. This might explain why it has not sold for X months.
We've offered way under before, for a place that we knew had been on the market for a while. They immediately rejected the offer, but we agreed with our solicitor to hold for a week or so, rather than accept their counter-offer. About a week later we got a call, saying they'd accept a revised (marginally increased) offer from us.
So, I'd say go in really low, emphasising that you are a cash buyer (which is a massive bonus), and can move quickly, then hold your ground.
Having sold a house a little while ago, we advised the estate agent how much the lowest offer is that we would consider and told them to not bother phoning us for anything under that.
Go in really low and you wont offend anyone, remember you arent trying to make friends you are making one of the biggest financial decisions of your life, negotiate and negotiate hard.
Remain polite and friendly but dont get pushed around, remember the estate agent is working for the vendor not for you and they are also working to get the most commission they can.
Similar to the above, i go by the "If you're first offer doesn't get laughed at its not low enough" Same for buying used cars.
Good Luck
I wish this thread had been 12 months ago.
I bought a house at a not dissimilar asking price to the OP. I put in an offer at 5k under asking, they countered at 3k under asking and I took it.
Truth was though, I'd have paid full price, I was overjoyed that they'd knocked 3k off it. Basically a complete stranger just gave me three grand for no other reason than I asked them to.
Heart vs head maybe, there are always other houses, but we really really wanted this place. I didn't want to come in too low and get told no.
Take the lowball offer stuff with a pinch of salt, totally depends on the area, the pricing and how hot the local market is.
There are two identical houses on sale near me - one for £130k and one for £175k. The only difference seems to be a good kitchen and nicer decoration.
The latter one deserves a very low offer, but the former you'd probably have to comply with the "offers over" to get it.
"Offers over" is nonsense anyway. Sure, £130,000.01.
On the flip side if you're competing on 'offers over' and it's creeping up by a grand at a time you need to go in with an offer that is just enough to kill off the competitors as you don't want it to go to sealed bids/best and finals when you'd be tempted to throw everything at it and you may be ahead by 10 lengths.
It's useful for agents and sellers in the current market, for sure.
But offers under can still succeed, even if it says "offers over".