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Didsbury84

When To Withdraw An Offer

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I have offered 95% of asking price on a property. The offer was rejected. EA advises the seller is holding out for 1.3% more.

I had indicated to the EA to come back to me if the situation changed.

I don't want my offer to be a stalking horse for others. I also think 95% of asking price is generous (and higher than average) in the current market.

I now wonder whether to withdraw the offer entirely...

Any thoughts?

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I have offered 95% of asking price on a property. The offer was rejected. EA advises the seller is holding out for 1.3% more.

I had indicated to the EA to come back to me if the situation changed.

I don't want my offer to be a stalking horse for others. I also think 95% of asking price is generous (and higher than average) in the current market.

I now wonder whether to withdraw the offer entirely...

Any thoughts?

Withdrawing your offer is pointless. If you ring up and ask them to do that they will wonder what you are going on about.

The fact that someone has offered 95% has given them an indication of what people might be prepared to go to. If they could use it as a lever for others they still can, and quite legitimately now. I.e. they can truthfully tell others 95% has been rejected.

If I were you I'd just wait and see if they contact you. We have an agent who rings us about a house every couple of months asking if we want to increase an offer we made, we just say no but if they change their mind we are still here. I doubt they will, it's been on about a year and a half so far!

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I have offered 95% of asking price on a property. The offer was rejected. EA advises the seller is holding out for 1.3% more.

I had indicated to the EA to come back to me if the situation changed.

I don't want my offer to be a stalking horse for others. I also think 95% of asking price is generous (and higher than average) in the current market.

I now wonder whether to withdraw the offer entirely...

Any thoughts?

May I ask whereabouts in the UK you're based? I'm in London, and from my own experience, no-one is accepting anything less than 97% of the asking price in the last 2-3 months. I've had several offers rejected for higher ones, and half of the ones I've offered on have gone for asking price. My current purchase (fingers crossed!) took quite a bit of negotiation, and I only managed to talk them down to 97.5%.

At the moment it's definitely more of a seller's market than a buyer's...

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May I ask whereabouts in the UK you're based? I'm in London, and from my own experience, no-one is accepting anything less than 97% of the asking price in the last 2-3 months. I've had several offers rejected for higher ones, and half of the ones I've offered on have gone for asking price. My current purchase (fingers crossed!) took quite a bit of negotiation, and I only managed to talk them down to 97.5%.

At the moment it's definitely more of a seller's market than a buyer's...

Not just a London phenomena. Sadly, the gap between achieved and asking is narrowing:

"Rightmove research shows a narrowing of the average gap between last advertised asking price on Rightmove and sold price recorded with the Land Registry. In December the discount stood at 3.39%. It has since narrowed to 2.95%."

http://www.rightmove.co.uk/news/files/2013/04/april-2013.pdf

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I have offered 95% of asking price on a property. The offer was rejected. EA advises the seller is holding out for 1.3% more.

I had indicated to the EA to come back to me if the situation changed.

I don't want my offer to be a stalking horse for others. I also think 95% of asking price is generous (and higher than average) in the current market.

I now wonder whether to withdraw the offer entirely...

Any thoughts?

Do nothing.. If you still fancy the property have in mind the new lower price you are willing to pay if the agent calls you back.

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Not just a London phenomena. Sadly, the gap between achieved and asking is narrowing:

"Rightmove research shows a narrowing of the average gap between last advertised asking price on Rightmove and sold price recorded with the Land Registry. In December the discount stood at 3.39%. It has since narrowed to 2.95%."

http://www.rightmove.co.uk/news/files/2013/04/april-2013.pdf

Fascinating read, thanks for sharing! I now feel slightly better that it's not just my dire negotiating skills.

Crappy time to be buying right now...

As for the OP - I agree with Bosh, do nothing. Just keep remembering what you think is a "fair" price for the property, and don't go a penny over it.

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There are definitely deals to be done at reasonable prices. I've just agreed a purchase at 12.5% under the final asking price and 20% under the original asking price. This is in a very popular area of South Manchester. Admittedly the house needs work but I will be paying in the region of a 2003/2004 nominal price.

I think the key is to find a motivated seller and property bee is the tool to identify them. I made half a dozen 'cheeky offers' on other properties before securing this one so it is also a bit of a numbers game.

My advice to the OP - stick to your guns and only pay what you think is reasonable. No point withdrawing the offer. leave it on the table but make it clear that you will be viewing and potentailly offering on other properties. If this is not the property for you then there will be another one a few months down the line that is.

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The right move data is interesting, but I'd be interested to see a regional breakdown. Anyone know if there is one?

None of the properties I've been tracking in South Manchester have sold for anything near 97% of asking price, and this is in what is considered to be a desirable area. 95% is about the maximum I've come across around here, hence my original post.

Thanks for the advice. My hunch is to hold tight.

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I don't get this "97% of the asking price" business. Sod the asking price. Just offer what you think it's worth and be prepared to walk away. Base your offer on historical sales with maybe a bit extra if they've made some proper improvements to it. All this pandering to an asking price is making the assumption that the unqualified EA (house salesman) or greedy seller has valued it 'correctly' and fairly.

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I don't get this "97% of the asking price" business. Sod the asking price. Just offer what you think it's worth and be prepared to walk away. Base your offer on historical sales with maybe a bit extra if they've made some proper improvements to it. All this pandering to an asking price is making the assumption that the unqualified EA (house salesman) or greedy seller has valued it 'correctly' and fairly.

I couldn't agree more. Where I am trying to buy, properties are going for the asking price or in the region of 0.5% less than the asking price. Greedy EA's and vendors are taking advantage (to put it politely on this here public forum) of the market at the moment. The houses I've been involved in have all turned into a bidding circus which I'm afraid I won't get involved in just to line their pockets. The banks then come round and value properties at less than the selling price, which accoridng to one EA in my area "yes, that's been happening quite a lot lately". Should that not tell the EA's something? :huh:

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  • 243 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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