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Offer Rejected - What Tactic To Deploy Next

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So, we submitted an official offer a couple of weeks ago at 30% less than the circa £200K asking price and were soundly rejected.

We went in low to see if it got any bite and got nothing in return. Vendor and EA probably feel insulted and have not come back with any idea of whether they will negotiate.

We really like the house, my wife especially is very keen on it. It is immaculate inside and out and is just what we are looking for. But having only recently started looking around for another home I am being cautious and prefer to wait and asee what comes up in and around the area.

Against my cautiousness there is the wee problem of there not being that not many properties come up for sale in the area we are looking at, and at the price point we can afford.

I'm not sure what negotiating tactic to use next. We really don't want to go above the 20% of asking price.

Go up in incrrements of £5K or £10K and see if it stirs anything?

Or offer 20% of the asking price with a suggestion to the EA that if it is rejected to give us some idea of where they can move to. In this way we can then decide to put it out of our mind if they are not prepared to drop to a price that we can agree to.

Or do we just bide out time and see what comes up and not push it. It is a delicate balance between showing an interest and not being too keen otherwise it might stop the vendor from dropping their asking price.

Any advice would be welcome.

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So, we submitted an official offer a couple of weeks ago at 30% less than the circa £200K asking price and were soundly rejected.

We went in low to see if it got any bite and got nothing in return. Vendor and EA probably feel insulted and have not come back with any idea of whether they will negotiate.

We really like the house, my wife especially is very keen on it. It is immaculate inside and out and is just what we are looking for. But having only recently started looking around for another home I am being cautious and prefer to wait and asee what comes up in and around the area.

Against my cautiousness there is the wee problem of there not being that not many properties come up for sale in the area we are looking at, and at the price point we can afford.

I'm not sure what negotiating tactic to use next. We really don't want to go above the 20% of asking price.

Go up in incrrements of £5K or £10K and see if it stirs anything?

Or offer 20% of the asking price with a suggestion to the EA that if it is rejected to give us some idea of where they can move to. In this way we can then decide to put it out of our mind if they are not prepared to drop to a price that we can agree to.

Or do we just bide out time and see what comes up and not push it. It is a delicate balance between showing an interest and not being too keen otherwise it might stop the vendor from dropping their asking price.

Any advice would be welcome.

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I would say set a price at what you think it's really worth and offer 10-15% below that.

As you have already made an offer then increase it by 5k and say you are close to your limit. Don't tell the sales person, sorry EA what your limit is though.

It's no harm asking what price the sellers are hoping to fetch but from experience this will be totally inflated.

It is important to remember that house prices are only going to go down so factor that into your decision and good luck.

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So, we submitted an official offer a couple of weeks ago at 30% less than the circa £200K asking price and were soundly rejected.

We went in low to see if it got any bite and got nothing in return. Vendor and EA probably feel insulted and have not come back with any idea of whether they will negotiate.

We really like the house, my wife especially is very keen on it. It is immaculate inside and out and is just what we are looking for. But having only recently started looking around for another home I am being cautious and prefer to wait and asee what comes up in and around the area.

Against my cautiousness there is the wee problem of there not being that not many properties come up for sale in the area we are looking at, and at the price point we can afford.

I'm not sure what negotiating tactic to use next. We really don't want to go above the 20% of asking price.

Go up in incrrements of £5K or £10K and see if it stirs anything?

Or offer 20% of the asking price with a suggestion to the EA that if it is rejected to give us some idea of where they can move to. In this way we can then decide to put it out of our mind if they are not prepared to drop to a price that we can agree to.

Or do we just bide out time and see what comes up and not push it. It is a delicate balance between showing an interest and not being too keen otherwise it might stop the vendor from dropping their asking price.

Any advice would be welcome.

I STR'd in 2005 and started making cash offers of 20-30% below asking price in 2008. No acceptances in over two years, and only a very few counter offers. Unless you come across a rare example of a truly desperate seller the most you can hope for is about 10% off the asking price. I've positioned myself with local Estate Agents as a cash buyer able to move quickly for the right price on the right property, but ultra low interest rates seem to be preventing the steep falls that you and I are holding out for.

Best to sit back and let a declining market do your negotiating for you. The big property selling period is late spring and early summer, if keen sellers haven't made any progress by September we should see some downward movement in prices towards the end of this year, and by spring next year there may have properties falling into your maximum price range and their minimum negotiation range, but that negotiating range is 10-15% not 20-30%.

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Is it worth, ahem, asking a friend or enquiring if someone from this site is nearby and can go and make an offer 5K below yours to them? Two derisory offers in a short period might get them thinking...

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Nobody is going to accept an offer of 30% down.

You may have wished for this, but you have to be realistic. Do you honestly think the vendor is going to sit down and say to himself "crikey didn't think I would get that little for my house, but I guess I better sell it"

Get real.

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Nobody is going to accept an offer of 30% down.

You may have wished for this, but you have to be realistic. Do you honestly think the vendor is going to sit down and say to himself "crikey didn't think I would get that little for my house, but I guess I better sell it"

Get real.

We never expected that the offer would be accepted.

The tactic, rightly or wrongly, was to go in low taking into account the current state of the market showing a general downward trend and giving the vendor and EA some idea that we think the house is overpriced. The hope was that at some stage the EA might come back to us, or we would go back to them, and start an exchange in which both parties could come to an agreement on price.

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I would say set a price at what you think it's really worth and offer 10-15% below that.

That sounds like a good bench mark.

It is important to remember that house prices are only going to go down so factor that into your decision and good luck.

We did mention that in our offer to the EA so they know how we are thinking. It is on our minds and we know we have to judge the loca market carefully.

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I STR'd in 2005 and started making cash offers of 20-30% below asking price in 2008. No acceptances in over two years, and only a very few counter offers. Unless you come across a rare example of a truly desperate seller the most you can hope for is about 10% off the asking price. I've positioned myself with local Estate Agents as a cash buyer able to move quickly for the right price on the right property, but ultra low interest rates seem to be preventing the steep falls that you and I are holding out for.

Best to sit back and let a declining market do your negotiating for you. The big property selling period is late spring and early summer, if keen sellers haven't made any progress by September we should see some downward movement in prices towards the end of this year, and by spring next year there may have properties falling into your maximum price range and their minimum negotiation range, but that negotiating range is 10-15% not 20-30%.

Many thanks for your valuable insight, particularly the comments I have highlighted in BOLD.

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Nobody is going to accept an offer of 30% down.

I agree. Unless the AP is a truly speculative figure on a unique house (and 200K asking suggests not) no (sensible) seller is going to say yes to an offer at 30% off without first listing for some months at 10% lower.

tim

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what does property bee say? 200K@30% is 60K - if it is just on at 200K they are not going to take an offer of 140K very seriously. You just have to play the long game at the moment, wait for it to drop to 190K to start with. The are probably hoping for 190K at the moment, and have been practically guarenteed an offer for that amount will just be around the corner by the EA in question. The EA knows they will be very lucky to get a 170K peakish type price point, but wants the instruction, so thats the last thing they will be telling the seller. If it does not get a nibble it will probably drop another 10K - but that could be 6-12 months away. You sound like you want to pay 155K or something for it - so you need to see it listed about 170K for that to be tangible for a un-motivated seller. The last 10K drop might happen - but it will probably do the rounds with other agents before that happens, but equally it might never come, and the property may just get pulled. Its a gloomy market, but nowhere near as gloomy as the peak years, when you couldn't save enough to keep up with the increases.

Edited by hirop

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So, we submitted an official offer a couple of weeks ago at 30% less than the circa £200K asking price and were soundly rejected.

We went in low to see if it got any bite and got nothing in return. Vendor and EA probably feel insulted and have not come back with any idea of whether they will negotiate.

We really like the house, my wife especially is very keen on it. It is immaculate inside and out and is just what we are looking for. But having only recently started looking around for another home I am being cautious and prefer to wait and asee what comes up in and around the area.

Against my cautiousness there is the wee problem of there not being that not many properties come up for sale in the area we are looking at, and at the price point we can afford.

I'm not sure what negotiating tactic to use next. We really don't want to go above the 20% of asking price.

Go up in incrrements of £5K or £10K and see if it stirs anything?

Or offer 20% of the asking price with a suggestion to the EA that if it is rejected to give us some idea of where they can move to. In this way we can then decide to put it out of our mind if they are not prepared to drop to a price that we can agree to.

Or do we just bide out time and see what comes up and not push it. It is a delicate balance between showing an interest and not being too keen otherwise it might stop the vendor from dropping their asking price.

Any advice would be welcome.

Your strategy of hoping the EA might come back with a counter figure was fine. Unfortunately it failed - in that this has not yet happened.

As you say its a delicate balance. Having done what you've done your options are limited. The vendor may genuinely be ignoring the whole thing, or they may be playing chicken and waiting for you to ask to negotiate first. Going back in any way is likely to be interpreted as a 'need' for the property and a willingness to offer more. Combine this with your admision that similar property in the area is hard to find and it seems perfectly reasonable for the EA to advise the vendor to hold out for his price.

Your choices are to walk away completely, wait and hope they will contact you, or capitulate and offer the vendor (closer to) what they want. I'd suggest going into the EA asking for details of alternative properties to view (at the lower price). This hopefully indicates you are seriously intending to buy and you're not desperate for this property at the price.

I'd not advise significantly increasing your offer, however it all depends on how much you desire the house, and whether your upper limit of 20% off is all you'd like to pay or all you can pay.

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Thanks to everyone for your constructive advice - it is very much appreciated.

To Jadoube I like your idea of:

I'd suggest going into the EA asking for details of alternative properties to view (at the lower price). This hopefully indicates you are seriously intending to buy and you're not desperate for this property at the price.

I think we'll definitely follow this one through.

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Saw a house recently, liked it, made an offer of 83% of the asking price and was roundly ignored to the point where I had to chase the EA to get a response (!)

The house then went off the market a few weeks later... I believe that in a great many cases people are staying put rather than accepting realistic figures.

I called the EA and they reckon they managed to secure an offer of 97% asking price but the guy decided to stay any way. I called BS on that until an identical house around the corner on at £330k sold the following week... now we have a 2-3 month wait to find out how much it went for.

We're posting on a house price crash forum, we want our money to reflect what we perceive as "value", but house-buying is a funny old game - you walk into a place and you realise that this is the house for you. At that point, it's really hard to consider "value" in the same way.

We are cash buyers and we don't need to move until next year. Time is on our side and prices can only go down. But I still wish I'd come back straight away with the 90% offer...

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I am going to make an 82% offer on a house today that came on this week. I know it will be rejected especially as there is a lady viewing it tomorrow who went nuts about it in the EA office when she saw it.

But she has to sell her house for full or near-full asking price.

Will the sellers go with my cash offer or a no doubt much higher offer from someone needing to sell their own home?

I have a feeling I will be disappointed.

Edit:

Viewed it, needs complete modernisation, asking price 280K. Walked away.

Edited by The Masked Tulip

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I am going to make an 82% offer on a house today that came on this week. I know it will be rejected especially as there is a lady viewing it tomorrow who went nuts about it in the EA office when she saw it.

But she has to sell her house for full or near-full asking price.

Will the sellers go with my cash offer or a no doubt much higher offer from someone needing to sell their own home?

I have a feeling I will be disappointed.

Edit:

Viewed it, needs complete modernisation, asking price 280K. Walked away.

Any clues on which property it is MT?

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  • 309 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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