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Expecting To Be Offered 10% Off Asking Price


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My parents (who sold their right-to-buy flat and bought their house in 1991 and therefore know everything there is to know about the property market) constantly tell me that vendors generally expect to be offered 10% off the asking price and set their asking prices accordingly. Obviously there are no 'rules' for the relationship between the asking price and the selling price, but has anyone else heard of this 'expecting to be offered 10% off' idea?

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I expect to get at least 10% off asking price and offer accordingly. So far none of the vendors have shared this view and I remain homeless :(

Then again I wouldn't even bother looking at a property that was 10% over market price.

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My parents (who sold their right-to-buy flat and bought their house in 1991 and therefore know everything there is to know about the property market) constantly tell me that vendors generally expect to be offered 10% off the asking price and set their asking prices accordingly. Obviously there are no 'rules' for the relationship between the asking price and the selling price, but has anyone else heard of this 'expecting to be offered 10% off' idea?

Yes and no. If you have an asking price of (say) £300K you might expect an offer of £270K and expect to agree, after a bit of haggling, at somewhere between £280K & £285K. But it depends so much on the competition - I put my house on the market at £360K hoping for £350K but got two asking price offers within 10 days. But it's not a surburban semi - it's the only house on the postcode (so no easy comparitors) and has 2/3 of an acre garden. So not everyone's cup of tea, but very attractive to a few people. The same would not apply to 235 Acacia Road or wherever.

Abit of Googling (I can't remember the exact link) should bring up the most recent figures for average % of asking price achieved. From memory, it wanders around between 92% and 97%.

Edited by cartimandua51
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Actually it's not purely percentage off. You're more likely to get a £90k house for £80k (11% off) than a £240k house for £220 (8ish% off). Mostly because it's money at the margin, and in each case you are potentially looking at a shortfall or debt, and it's the absolute value of this debt that is key.

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The market is for the most part in a state of delusion and suspended animation. Vendors expect to be offered what their house was notionaly worth (to an over-leveraged idiot) right at the height of the bubble.

The extension of this delusion is that vendors will artifically inflate prices by, say, 10% so that there can be some perfunctory negotiation on the way to getting the actual desired price. Sometimes, you might find even an idiot buyer who will offer the actual asking price. Kerrchingg! Try Googling "house prices in London" for further details.

The reality is far simpler. The vast majority will only buy at what the house is actually worth, which is much, much lower. Hence the widespread lack of any offers, or else the occasional sensible, low-ball offer which the deluded seller rejects, only to sit on their over-valued pile for yonks.

Here's a wonderful example of the seller logic. http://www.rightmove.co.uk/property-for-sale/property-33842008.html Been on market for about 3 years, with prices as low as (a very optimistic) £750k. Still on, but now at £950k. The only change - a planning approval to build another house within the curtilage and a consequent reduction in the amount of land involved. Looks a bargain to me. I might even offer the asking price.

You couldn't make it up.

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  • 1 month later...

Don't bother with percentages. Either offer what you are prepared to pay for the property and explain that it is your one and only offer or offer less than you are willing to pay and leave room for negotiating.

The criteria for what you are willing to pay though could be so widespread, I could not give you advice.

Hopefully you have already contacted lendors (if you need to lend) and have a deposit. Have you a house to sell or are you a ready, willing and able buyer?

Once that is established you then need to draw up a list of what you need from a property rather than what you want unless you have tons of cash.

This should then give you something to work from and search for property. Find properties and then research them on-line to find out a bit more about what they are actually worth, view and offer accordingly.

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  • 2 months later...

I've seen a property that's come onto the market about 25% - 30% above what similar properties in the area have been selling for recently. So you need to be looking at the recent sale prices as 10% off a current properties asking price is meaningless if the property is way overpriced.

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  • 1 month later...

Yes and no. If you have an asking price of (say) £300K you might expect an offer of £270K and expect to agree, after a bit of haggling, at somewhere between £280K & £285K. But it depends so much on the competition - I put my house on the market at £360K hoping for £350K but got two asking price offers within 10 days. But it's not a surburban semi - it's the only house on the postcode (so no easy comparitors) and has 2/3 of an acre garden. So not everyone's cup of tea, but very attractive to a few people. The same would not apply to 235 Acacia Road or wherever.

Abit of Googling (I can't remember the exact link) should bring up the most recent figures for average % of asking price achieved. From memory, it wanders around between 92% and 97%.

We bought 2 years ago after STR 4 1/2 years ago.

House we bought was on at 300k. We were the first to view and offered 270k and it was accepted straight off. Wife was too embarrassed to offer 270k but I talked her into it. :)

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  • 2 years later...

Actually it's not purely percentage off. You're more likely to get a £90k house for £80k (11% off) than a £240k house for £220 (8ish% off). Mostly because it's money at the margin, and in each case you are potentially looking at a shortfall or debt, and it's the absolute value of this debt that is key.

Interesting, I hadn't thought of that. I guess the limiting factor in making up that shortfall for the next person in the chain is likely to be borrowing as a multiple of their income rather than the LTV of their mortgage, the latter probably already being as high as it can be.

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  • 2 weeks later...

I think I need to side with Swansea Estate Agent here.

There is no hard and fast rule about what to offer or what to accept. Do some research and figure what it means to you.

I looked at some property in Wales a while back, and it did not tick the boxes.

In the end I purchased a place I would never live in, but in an area that others might. A little like stocks and shares. I'm sure we all have savings in a little corner where we make money rather than plant it under a matress........

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currently looking at property in birmingham, its an 11 year old persimmon which has been a part ex with persimmon and they are asking 220 for it. I offered a generous 160 as it was a persimmon and the agent thought I was joking. she has decided she wants that house even though it probably needs a good 10-15 to tidy it up and sort out problems from when it was built in the first place.

we offered 188 refused and upped to 194 but the agent is refusing to pass it on, so we found the other agent and have put it to them. to me 187 is nearer the mark and generous going by what we have been looking at lately and chatting with the mortgage advisor.

one thing we were advised was to maybe get a survey done and the banks surveyor to say the bank will refuse to lend over a certain figure so the seller will have to climb down.

I'd be happy to wait it out as prices are dropping in birmingham as people realise they are way overpriced and they are asking modernised prices for houses which last had a remodel in the 80s, unfortunately she wants to be moved before may.

what would happen if I got several friends to offer 170ish to wind them up?

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