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How Much To Offer Below Asking Price

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Lets assume a house is on the market for £110,00 ( rateable value £100,00 ), how would you begin negotiations with the vendor.

Is it a given that in general sellers factor in a haggling price of at least 10% and most houses in the present climate will sell for at least 10% below asking price.

Is it also good practise that buyers should start off by offering at least 10% below what price they think is fair and which they will be prepared to go to.

Would anyone suggest simply telling a vendor what you will pay for the house. I mean giving a price which is non negotiable or is it always best to go in low and then be prepared to go up so as to appear to compromise.

In the above situation what would be a reasonable opening offer and what would be considered plain offensive?

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Lets assume a house is on the market for £110,00 ( rateable value £100,00 ), how would you begin negotiations with the vendor.

Is it a given that in general sellers factor in a haggling price of at least 10% and most houses in the present climate will sell for at least 10% below asking price.

Is it also good practise that buyers should start off by offering at least 10% below what price they think is fair and which they will be prepared to go to.

Would anyone suggest simply telling a vendor what you will pay for the house. I mean giving a price which is non negotiable or is it always best to go in low and then be prepared to go up so as to appear to compromise.

In the above situation what would be a reasonable opening offer and what would be considered plain offensive?

Ask a friend to view the house and make an offer that you are concerned is slightly offensive, and see what the vendor does. Might accept, might reveal their true bottom, might barter. Whichever, they get demotivated and are more likely to accept your offer a few days later, which you have already adjusted based on the response to your friend.

You can use the graphs here to work out the difference between asking price and selling price at your postcode of interest http://www.home.co.uk/guides/house_prices_menu.htm?location=sl1

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Although we don't get the full benefits of this guide since we have no transparent land registry it still shows up the length of time houses are sticking on the market and the asking prices. In my bookmarked area I can see a direct co-relation between asking price of detached and length of time on market. The upper end of the market will not move until realism comes into pricing. Until the upper end moves the rest of the chain cannot move forward.

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I think you need to understand the Northern Ireland property market before you can make a realistic go at valueing any properties - one of the biggest mistakes the English estate agent chains made was to assume the property market here works the same way as across the water, this is why most throw in the towel after a few years.

Edited by melchior

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I think you need to understand the Northern Ireland property market before you can make a realistic go at valueing any properties - one of the biggest mistakes the English estate agent chains made was to assume the property market here works the same way as across the water, this is why most throw in the towel after a few years.

The mistake the 'English' estate agents made was trying to move over here during the boom to cash in on the huge bubble that was taking NI house prices up by bigger percentages than anywhere else in the UK.

The problem is that when the bubble burst they seen the market wasn't big enough for them to make a profit, as was the case with all the other wannabe EA's who attempted to set up business who all quickly disappeared back into the holes they came from.

... such as the well qualified self employed Remax EA's :rolleyes: ...

Are you suggesting that there is a fine art to valuing property in NI other than an EA licking his finger and sticking it in the air?? :blink:

If so we would love to hear this magical approach to the NI market because from where I am sitting it is vendors who are dictating the prices in NI at the minute.

Edited by tinbin

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As far as I can remember the Halifax started taking over EA in the early 90's well before any 'housing boom' started and gave up 2 years before the height of the Boom.

In my opinion house sale figures/prices have been so distorted by speculators of various sorts in the last 10 years in N Ireland that to try and value property on an acroos the board principle is totally pointless - some houses now on the market will never sell, will probably end up demolised - other houses will never come down in price due to there location, the ones in the middle will set the market value - if that happens to be private developers who have got land cheap and can sell houses at good value to the few buyers out there then that sets the price.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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