Grab_Some_Popcorn

Putting in low offers

87 posts in this topic

Viewing a house today with the expectation of putting in a very low offer. Any tips? It's been on market for a week. Doer-upper. Big south facing garden. 

Best to wait until it's been on market for longer and they're getting desperate?

I'm currently fighting with landlord to get our off-peak immersion heater fixed... Has reminded me why I hate renting sometimes. Hence viewing a house to buy :)

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We moved back up to the Midlands and have put in offers for several houses. One was for 198k, for a house that had sat for about five months at 217k oiro. Rejected, but owner did say they would take 208. Didn't seem like an appropriate mark down given the list time, but then we had to eat our words when it went sstc to somebody else shortly after.

Also put in an offer for 200k for a house that had been on for the best part of a year at 230k. Agent told me they'd had no offers so thought why not. Rejected, and owner a bit put out apparently, but seriously? They bought it for less than half that about fifteen years ago.

Unfortunately the vendors hold all of the cards at this time, and are in no rush, so I wish you luck.

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On the contrary - it's the buyers who hold the cards. Buy to let has evaporated and even if the estate agent/vendors get offended that's their problem not yours. Time is on our side as the longer you leave it the more 'house prices falling' headlines there will be in the general media and the more it will filter into the public consciousness.

Take a while between viewing and making an offer, say you're looking at other houses first. Up to a fortnight even, Go very low - 50-30% under. if you're not embarrassed, it's too high. When it gets knocked back, take another break to 'think about it'. Come back with your first offer plus an odd figure (e.g. go from £170k to £173,850)

Be prepared to walk away at any time, especially the first sign of any ******** from the estate agent - they need to be trained not to ****** around as they've spent too long getting away with murder.

There's always a second offer from someone else, even for a house that's been sat on the market for months. Invariably it will be 10-15k higher than yours.

Be prepared to walk away.

Have a couple of trial runs on properties you don't really want to get an understanding into how the process works and what you're going to feel. Don't let your emotions get the better of you.

Have a shit ton of data to hand about what you're bidding on - the state of the market, the £/m2 of recent similar sales, the Land Registry Index for the borough. It's of no use in the negotiations but you need it to be able to remind yourself about the facts while the estate agent will be playing with emotions.

Be prepared to walk away.

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You lot aren't trying hard enough 

:lol:

i recently put in an offer for 185 on a property up for 240.  Some fool then went and bought it close for asking.  The owner was insulted by my offer apparently.  Not as insulted as I was by them wanting double what they'd paid 16 years ago...

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Your not going to get a big chunk off within a week in most cases.

I usually view and then when you get a call back (some agents just wont bother as shit at their jobs...its sales for god sake always be closing) state that you really liked the house but to be honest its a bit out of line with previously sold properties but keep you posted.  It may be a good time to show your money or ability to proceed your serious....but they are not.

If its mega overpriced say to them I am not making an offer until its fallen to x as i am not wasting anyones time and I need to buy.

Remember this people tend not to make offers on houses when they feel its more then 20% overpriced.  

You need to wait for them if you believe the property is overpriced/lack of interest once a seller starts to reduce its a better indicator of motivation.... ie the process has started of them accepting the market.  

Once you make a bid you put a floor in the vendors mind so make that first offer really low so you can close with the second or third round.

 

Edited by Fromage Frais

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14 minutes ago, Bunfight said:

You lot aren't trying hard enough 

:lol:

i recently put in an offer for 185 on a property up for 240.  Some fool then went and bought it close for asking.  The owner was insulted by my offer apparently.  Not as insulted as I was by them wanting double what they'd paid 16 years ago...

This happens to me all the time I soften them up and then some mug comes in after.  

Its always a good sign when an agent welcomes a bid (as they should) a bad sign is when they are more concerned about keeping the listing than closing a deal as they have so few properties for sale a low offer might be met with indignation. 

The number of people who change agents rather than reduce and also keep listing their house for years rather than reduce means you just have to walk when faced with one.

Edited by Fromage Frais

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I wanted to give myself more power and control in negotiation. When we were viewing our house I told the agent my wife and I were interested and I would call him in 2 days. I then called him the very next morning and asked if the buyer was contactable. I then told him my wife suffered a stress related condition and I wanted to protect her from the stress of waiting for an offer to be accepted and that we had to reach an agreement that day whilst she was oblivious to the conversation I was now having with the agent. I stated that failure to reach an agreement that day would mean I would go home and put my wife off the house.

All of a sudden I was in control. The vendor had an offer which he 'knew' was only on the table for the next few hours. We paid £120k for a house which had been on the market for offers over £155k. In fairness, I let him think he had won because I initially offered £115k, £120k was his counter.

I still wonder if I accepted too quickly. It was all done in about 2 hours.

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As stated above, it's very important to have a very detailed overview of the state of the market in your area. Price trends, reductions, average time to sell, median reductions for sold prices. Unfortunately I know that in my town 75% of properties that sell achieve at least 95% of initial asking price, so low-balling is not very realistic most of the time.

But do it anyway!

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we recently offered low on a property which is on the market from May 2016. Asking price £300K .  They had already declined a previous offer by some one at £260K. So our first offer was £265K which was declined. Then we revised our offer to £270K they declined that as well. We then revised our offer to £280K and that was declined and we made our final offer of £282K which was also decline. 

Finally we walked away from that house and it is still in the market. Our Solicitor informed us that even though the property is on the market for 1 year now the seller is in no hurry to sell and will only take offer closer to the asking price. 

 

 

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For me low balling is as much about your personal situation as the vendors. If you are in cash, are not fussy about the place you want and don't have a family in tow then you can afford to put lots of offers in on places, with the increased probability that eventually one will be accepted. I think most vendors are reluctant to accept much more than 10% off (although as people have said that is subject to local market and conditions). Putting in low offers can have a flip side, in the respect that all the time you have laid out money there is the potential to be gazumped and end up losing a couple of thousand in survey/solicitors fees, so for me with low ball offers you want to be moving quickly.

If you're married with kids, mortgaged and also have to sell your own gaff then continued lowballing at 30% under is probably just as likely to lead to a divorce as it is a cheap house.

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Low ball a 100 times, usually leads to 10 successes. Everyone's attempting to cash in and downsize...

That's what happens in economic uncertainty... like in 2004, 2009, 2013 & 2015... but I'm sensing something different from the normal BTL bargain hunters looking to scoop up.... a market void of buyers.

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1 hour ago, Gigantic Purple Slug said:

If you're married with kids, mortgaged and also have to sell your own gaff then continued lowballing at 30% under is probably just as likely to lead to a divorce as it is a cheap house.

Married with kids but renting. My wife is pro HPC and anti dangerous debt levels.

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Agree with most of whats been said. Putting in a low ball after a week is a waste of time. You will just insult vendor and piss off the agents.

I would wait 4 weeks at least. By that time they may of had some other low ball offers and not accepted them. Princncple says the vendor wont go back and accept an early low offer, but if you are the new offer they might entertain it.

Again it depends also on the area/schools/prime/slum/whether it BTL, if they are in a chain/its the end of tax year etc// lots of variables, but one overriding is wait. If the house it empty it will be incurring costs. 4 weeks is good time to stick in a low ball, good luck!

 

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Having viewed, I think an offer of 30% of asking would be about right.

Yes "of", not "off".  It was a stinking house that has not been decorated or updated in anyway in 50 or 60 years. Filthy. Needs stripping out, rewiring, new plumbing, new skirting/doors, re-plastering. Hideous.  

 

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9 minutes ago, Grab_Some_Popcorn said:

Yes "of", not "off".  It was a stinking house that has not been decorated or updated in anyway in 50 or 60 years. Filthy. Needs stripping out, rewiring, new plumbing, new skirting/doors, re-plastering. Hideous.  

 

Doesnt mean it wont be popular. If its already cheap people will want it (obviosuly dependant on location, always buy the worst house on best street etc)

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47 minutes ago, Grab_Some_Popcorn said:

Having viewed, I think an offer of 30% of asking would be about right.

Yes "of", not "off".  It was a stinking house that has not been decorated or updated in anyway in 50 or 60 years. Filthy. Needs stripping out, rewiring, new plumbing, new skirting/doors, re-plastering. Hideous.  

 

That's a good plan, do that then! Phone up and say "I'll offer 30% of the asking price". They'll mis-hear you (either deliberately or by accident) and assume you meant 30% "off". At which point you indignantly point out there's no way you would say "off", you said "of" because it's needs <your list>. :)

 

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26 minutes ago, Grab_Some_Popcorn said:

£300k for a 3 bed semi. Not cheap. And even the EA says over priced.

Nothings cheap unless youre up north. Be thankful you arent in harrow or watford( or even northanmpton from what ive heard) :)

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12 minutes ago, GreenDevil said:

Nothings cheap unless youre up north. Be thankful you arent in harrow or watford( or even northanmpton from what ive heard) :)

Cambridge and South of is pretty suck too.

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People on here have their heads stuck somewhere.

 

Putting in offers massively under the listing will just piss everyone off. 10% success rate is a nonsense as well. No way will 10 out of 100 low ball offers succeed. 

 

Just check your local sold prices and see how many went for 20,30 or 50% under listing price.

 

I'm in Scotland where house prices have been pretty static since 2007. I've been looking at rightmove near enough everyday for my area and also check sold prices when it is updated. In all that time I don't think I've seen more than a 5% difference.

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7 hours ago, anonlymouse said:

Take a while between viewing and making an offer, say you're looking at other houses first. Up to a fortnight even, Go very low - 50-30% under. if you're not embarrassed, it's too high. When it gets knocked back, take another break to 'think about it'. Come back with your first offer plus an odd figure (e.g. go from £170k to £173,850)

[...]

Be prepared to walk away.

Agree wholeheartedly with all of that and you beat me to it. "If you're not embarrassed by your first offer, it means it's too high" is a good adage which I read here.

 

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