Jump to content
House Price Crash Forum
Fully Detached

Are You Making Offers? If So, At What % Off Asking Price?

Recommended Posts

As per the title really. I had an offer rejected yesterday that I think was quite reasonable all in all, so I'm wondering what other people are finding.

So:

  1. Asking price - delusional, reasonable, or cheap?
  2. Your offer - cash, or requiring mortgage?
  3. Your position - proceedable?
  4. Your offer % off asking price
  5. Accepted or rejected?
  6. Any other feedback

For me:

  1. Not overpriced by comparison, still ridiculously expensive IMO
  2. Cash
  3. Nothing to sell, completely chain free
  4. 16% below asking
  5. Rejected
  6. Agent reckons he can get 8% off asking price at least. I call ********.

Any other experiences would be welcome - I appreciate this is going to vary from region to region but it would be good to get a feel for what you guys are doing and what responses you're getting.

Share this post


Link to post
Share on other sites

The only recent offer I made was on a repo.

On for c300k, and market rate for it in great condition would have been about right. Factor in the 40k spend needed to gut it and the impending surrender of the house, my offer of 230 was dismissed straight away.

Probably would have taken 260, but then I might as well buy a 300k house that doesn't need anything doing to it.

Incidently, around 80% of the houses we've been to view have been put up on the market because of a family breakup, that wasn't the case 3 years ago when we last went looking.

Share this post


Link to post
Share on other sites

As per the title really. I had an offer rejected yesterday that I think was quite reasonable all in all, so I'm wondering what other people are finding.

So:

  1. Asking price - delusional, reasonable, or cheap?

  2. Your offer - cash, or requiring mortgage?

  3. Your position - proceedable?

  4. Your offer % off asking price

  5. Accepted or rejected?

  6. Any other feedback

For me:

  1. Not overpriced by comparison, still ridiculously expensive IMO

  2. Cash

  3. Nothing to sell, completely chain free

  4. 16% below asking

  5. Rejected

  6. Agent reckons he can get 8% off asking price at least. I call ********.

Any other experiences would be welcome - I appreciate this is going to vary from region to region but it would be good to get a feel for what you guys are doing and what responses you're getting.

Offers at % off asking price doesn't work for me, itrt everything has to be looked at individually depending on its initial price and compared to similar.

My experience FWIW is that if something has been on the market for a short time your chance of getting a heavy discount is remote. The market has to have time to beat sense into the seller. Of course it may also work the other way round.

In my neck of the woods (SE) stuff does not appear to be selling at a huge discount to asking prices. Probably 5-10% on average.

Saw a gaff the other day but probably won't bid because a) it's not been on the market long and B) similar properties on the LR are showing prices higher than I am prepared to pay. It's one thing if the seller has unrealistic expectations and has priced far above the market value, another issue completely if very similar properties have been selling above prices I am prepared to pay.

Back into the bolt hole until winter methinks.

Share this post


Link to post
Share on other sites

Back into the bolt hole until winter methinks.

This is the first offer I've made in 15 years so I'll try going low on a few more before I retreat until a later day, but I can see it's likely I'll be doing the same after a few resounding rejections.

The biggest problem I have is finding that when you've worked hard and saved up the cash, everything looks insanely overpriced. We could just about get within the 8% below asking price that the agent is talking about, but I just can't see the value in it. I'm competing with people spending money they haven't earned and don't understand the value of.

And yes, I know I sound like an old git :)

Share this post


Link to post
Share on other sites

Had one accepted on Berks-Surrey border at £65k/14% off. Was accepted pretty much right away.

Chain is dragging and we've been scanning again, but sticking with this property at the moment as, at anywhere near our asking it's looking like good value in this area - 4 bed 3 public large kitchen double garage, HUGE 210ft garden with it's own forest at the end, not overlooked by anyone at the back, 10min walk to railway station, 45mins to Paddington via Reading.

There's a huge amount of rubbish on at fantasy/arm chancing prices not selling but a motivated seller will accept a sensible price when it's coming from someone making a serious offer. It's calibrating that correctly that's the fine art, not a blunt 'I'm offering x% off' strategy, there are quite a few houses out there I wouldn't even look at at 30% off.

Share this post


Link to post
Share on other sites

Had one accepted on Berks-Surrey border at £65k/14% off. Was accepted pretty much right away.

Chain is dragging and we've been scanning again, but sticking with this property at the moment as, at anywhere near our asking it's looking like good value in this area - 4 bed 3 public large kitchen double garage, HUGE 210ft garden with it's own forest at the end, not overlooked by anyone at the back, 10min walk to railway station, 45mins to Paddington via Reading.

There's a huge amount of rubbish on at fantasy/arm chancing prices not selling but a motivated seller will accept a sensible price when it's coming from someone making a serious offer. It's calibrating that correctly that's the fine art, not a blunt 'I'm offering x% off' strategy, there are quite a few houses out there I wouldn't even look at at 30% off.

I guess the real problem with the big discount is that you want to close it off quickly to prevent any chance of gazumping. The chain must be a pita.

Is that 15% off asking or 15% what you think is market value ?

Good luck anyway ...

Share this post


Link to post
Share on other sites

People seem to be factoring in offer margins to the asking price. Everything listed looks 30% over value around here, nevertheless asking prices are coming down in the sub 500K band.

Share this post


Link to post
Share on other sites

4 bed 3 public large kitchen double garage, HUGE 210ft garden with it's own forest at the end, not overlooked by anyone at the back, 10min walk to railway station, 45mins to Paddington via Reading.

That sounds absolutely fantastic. Good luck, hope it all gets moving soon.

People seem to be factoring in offer margins to the asking price. Everything listed looks 30% over value around here, nevertheless asking prices are coming down in the sub 500K band.

That was definitely the case around here when I was looking seriously a couple of years ago, I'm not so sure about now. The problem is it only takes a few to do that for the vast majority of people to determine that asking price = market value, and it all goes downhill from there.

I'm in the painful position of watching a distant acquaintance putting his 2 year old, 2 bedroom flat flat on the market for £140,000, with the expectation of achieving full asking price for no other reason than that it's "only just above" what he paid for it as a new build. He's out offering on bigger places right now, seeming to expect to sell his flat at asking price, and move up another 100k into the type of place that we are looking at, without any opposing opinion from would-be buyers or his mortgage bank. Up against people like that, I refuse to compete. So I guess I'll lose out and end up paying his mortgage through my taxes in future. Still, at least I'll be debt free :)

Share this post


Link to post
Share on other sites

As per the title really. I had an offer rejected yesterday that I think was quite reasonable all in all, so I'm wondering what other people are finding.

So:

  1. Asking price - delusional, reasonable, or cheap?

  2. Your offer - cash, or requiring mortgage?

  3. Your position - proceedable?

  4. Your offer % off asking price

  5. Accepted or rejected?

  6. Any other feedback

£320k originally, I believe overpriced. Currently at £280k, needing £20k work, next door (looks fairly similar) went for 267k 2 years ago

Cash & mortgage, 1st time buyer

Offered £230k - waiting to hear!

Share this post


Link to post
Share on other sites

It'll vary from area to area I think - and especially from seller to seller. You need to do your research into how long it's been on the market, does it look like the seller wants/needs to sell, might they have plenty of equity (not guaranteed with MEW, of course), is a problem house - but you are happy to live with the problems.

I was offering 20-25% off depending on the house last year. Eventually, I got a taker and we settled at 17% off their last asking price (1/3 off their initial asking price). Not many estate agents will help you with this - but I got lucky as they obviously knew the seller was desperate and I was their best chance of a quick sale (I was in cash).

Some parts of SE/London though - you'll be lucky to get any discount. Things are still stupid/ridiculous down there.

Share this post


Link to post
Share on other sites

I bought in December last year. Hand forced so to speak by a missus fed up of waiting, a baby (born two weeks ago), and the right house coming up, otherwise I think I would still have waited.

[*]Asking Price - Had been on the market for a year and a half, initially for £205,000, falling to £195,000

[*]Your offer - Needed Mortgage

[*]Your position - Was renting on a running contract so only a month notice required

[*]Your offer - Initially £140,000, then £145,000. We then left it for six months and went back with £152,500

[*]Accepted eventually as they needed to move, did move assuming the house would sell then found themselves stuck with it.

[*]Any other feedback - Yes, we went to see the owners and did all of our dealings face to face even though they insisted we did the sale through the EA. Much easier and cut out the ********.

Hope this helps!

Share this post


Link to post
Share on other sites

Excellent thread and am working through the same issues now. Lack of a garden for our little one is becoming an issue, although we are in a very reasonaly priced rental (relatively speaking) and I've locked in an interest rate on our savings until next year that is certainly better than anything else currently available.

We have enough cash to meet 80% of the typical asking price of the place we are looking for. As part of researching properties, we look at when it was last sold, how much for, how long it has been on the market, whether there have been any asking price reductions so far etc etc. It's not an exact science, but it does offer a useful guide as to whether a low offer will be accepted IMO. One place ticked quite a few boxes, but on Zoopla we found a comment from the vendor saying they 'had enjoyed a very pleasant six years in the property'... So they bought it at the peak of the market. We went for a viewing anyway and the vendor told us in no uncertain terms that he had cut the asking price as much as he possibly could. So, a no go-er, as I expected. Had a couple of issues with it anyway that the viewing brought to light.

Saw a good post on HPC a few months back that talked about pictures of bedrooms that were clearly for small children. The poster explained how these were most likely trapped second-steppers - bought a place on two salaries a few years ago, stretching themselves at the market's peak. Now a couple of sprogs later and a cut in salary due to the childcare factor, they are looking to recoup at least what they have paid, and 20% more to buy a bigger place. Advice was to avoid these. Good advice IMO.

Share this post


Link to post
Share on other sites

Agree with previous posters that a percentage off probably has been accounted for in the asking price. Its worth what its worth to you, if the vendor won't sell at that price there's nothing that can be done. I'd only start to see value at 40% off current asking so Im not going to make any offers, they would just be rejected so its a waste of time.

I will not buy when there is no value, sales volumes are still on the floor and forbearance cant last forever. Maybe we'll have to wait for the boomers to die. ok then.

Share this post


Link to post
Share on other sites

Agree with previous posters that a percentage off probably has been accounted for in the asking price. Its worth what its worth to you, if the vendor won't sell at that price there's nothing that can be done. I'd only start to see value at 40% off current asking so Im not going to make any offers, they would just be rejected so its a waste of time.

I will not buy when there is no value, sales volumes are still on the floor and forbearance cant last forever. Maybe we'll have to wait for the boomers to die. ok then.

Apart from the last sentence, that could have been written by me.

Share this post


Link to post
Share on other sites

Saw a good post on HPC a few months back that talked about pictures of bedrooms that were clearly for small children. The poster explained how these were most likely trapped second-steppers - bought a place on two salaries a few years ago, stretching themselves at the market's peak. Now a couple of sprogs later and a cut in salary due to the childcare factor, they are looking to recoup at least what they have paid, and 20% more to buy a bigger place. Advice was to avoid these. Good advice IMO.

That's excellent - there will be a new dimension to my Rightmove searching from today onwards - thanks!

I will not buy when there is no value, sales volumes are still on the floor and forbearance cant last forever. Maybe we'll have to wait for the boomers to die. ok then.

I feel very much the same. The problem I have is that having watched Cyprus set the scene for depositor haircuts in the future, I've started to equate anything like sensible reductions in house prices with the sort of economic events that could trigger the same over here. I am in no doubt that some time in the next few years we will see 30% reductions, but that's not as comforting as it might be when you wonder if your cash is going to take an equal hit.

For anyone buying with a mortgage, I'd say it's a no brainer to wait for the unavoidable outcome, and enjoy it when it comes.

Share this post


Link to post
Share on other sites

That's excellent - there will be a new dimension to my Rightmove searching from today onwards - thanks!

I feel very much the same. The problem I have is that having watched Cyprus set the scene for depositor haircuts in the future, I've started to equate anything like sensible reductions in house prices with the sort of economic events that could trigger the same over here. I am in no doubt that some time in the next few years we will see 30% reductions, but that's not as comforting as it might be when you wonder if your cash is going to take an equal hit.

For anyone buying with a mortgage, I'd say it's a no brainer to wait for the unavoidable outcome, and enjoy it when it comes.

After all these schemes to prop up prices and QE I don't think we will see anywhere near 40% off. They have shown that at least for now they won't let prices drop, or at least try everything they can. Even without this I think 40% is ambitious.

As I posted a few weeks ago everything around here is going mental, even in the last few days 1 million plus houses going straight on rightmove as under offer.

We decided to go for a property in the best area possible and one big enough to live in forever, although it is pricey. But when you can get rates at around 2.5% and the worry of all the cash in the bank then it's starting to look like we should just give in. So fingers crossed it goes through.......it will probably crash when we have bought though!!

Our strategy is to overpay loads in the 1st five years, I don't see rates moving much in this timeframe. It's a risk yes but so is life. Faced with several years renting, seeing the local market going mental, and the opportunity to live in a cracking house in the best area with no scum agents in involved (letting agents really starting to bog us off) we have come to the conclusion that we should give in!

As for offers, we have made a few serious ones, but either someone else has ended up getting it for about the same amount, as we went in too early etc, or the vendors have taken it off the market. A repo we tried to get is looking to resell for a significant profit and we are kicking ourselves! We thought the agent was lying about a higher offer!

I have been keeping a spreadsheet of sold data, and although haven't got it to hand here, discounts are something like a range of -35% to plus a few percent. Not many are real discounts though, just initial delusions.

We are getting about 10% of the property we have in the pipeline from initial asking, but only a few % off final asking.

What's more important is to understand price for area/street against price per square meter.

In our area this is about £3000 average, £3500 for good village locations and £4000 for the very best locations/houses. Ok a few gave been over this but not typical.

Like anything this all depends on the area and personal circumstances, but after several years renting we are definitely fed up, worried about our significant deposit, and seeing the local market going mental!

Share this post


Link to post
Share on other sites

After all these schemes to prop up prices and QE I don't think we will see anywhere near 40% off. They have shown that at least for now they won't let prices drop, or at least try everything they can. Even without this I think 40% is ambitious.

As I posted a few weeks ago everything around here is going mental, even in the last few days 1 million plus houses going straight on rightmove as under offer.

You have to have a VI, your whole post screams VI, whether trying to convince yourself that buying is right or because you sell houses or have a house to sell, either any of those reasons or the post is trolling.

We decided to go for a property in the best area possible and one big enough to live in forever, although it is pricey. But when you can get rates at around 2.5% and the worry of all the cash in the bank then it's starting to look like we should just give in. So fingers crossed it goes through.......it will probably crash when we have bought though!!

Personally, I can't think of anything worse than knowing where I'll be for the next 25 years and some, and from where I'll be carried out in a crate. There is a whole world out there.

While I grew up with the 'buy a house ethos programmed into the psyche', having been priced out of the market for so long I realise that renting suits me very well as it is so cost effective. I reckon I am paying ~ 50% of what an IO mortgage would be on the property I rent. If houses were realistically priced I might buy a small low maintenance one as a base.

Like anything this all depends on the area and personal circumstances, but after several years renting we are definitely fed up, worried about our significant deposit, and seeing the local market going mental!

Sums up all my comments quite well.

Edited by LiveinHope

Share this post


Link to post
Share on other sites

A timely thread for me.

I've been tracking properties in my area, and trying to calculate fair market value based on LR values. Interestingly, there seems to be a rough "price per square foot" in the small area I'm looking at, and then some wiggle factors (garden, proximity to good school, good/bad nick etc) that move it up or down. It's actually quite predictable.

Then you look at the prices being asked and some are clearly fantasy. And these places don't sell (generally). Then they drop, and just as they look realistic, they go under offer.

I'm biding my time, but in the meantime the stock market is going up and our landlord is good. Cunch time comes for me when we have to move as the kids are only getting bigger and that bunk bed will only last so long, and 50K cash savings at 4% is coming back and I've nowhere to put it, and the wife is going back to work, so wherever I put it I'll have to pay interest, and added to all that if I do buy then I can get benefits if it all goes to sh1t... it's almost too much trouble not to buy a place to be honest.

Share this post


Link to post
Share on other sites

I'm biding my time, but in the meantime the stock market is going up and our landlord is good. Cunch time comes for me when we have to move as the kids are only getting bigger and that bunk bed will only last so long, and 50K cash savings at 4% is coming back and I've nowhere to put it, and the wife is going back to work, so wherever I put it I'll have to pay interest, and added to all that if I do buy then I can get benefits if it all goes to sh1t... it's almost too much trouble not to buy a place to be honest.

What I have highlighted in bold is, for me, the biggest unfairness in the benefits system.

However, I would far sooner have cash and mobility if I was unemployed than take any JSA or income support, which would be the very last resort.

Share this post


Link to post
Share on other sites

What I have highlighted in bold is, for me, the biggest unfairness in the benefits system.

However, I would far sooner have cash and mobility if I was unemployed than take any JSA or income support, which would be the very last resort.

I find it staggering that people consider the benefit system as a backstop for failed investment strategy.

As you say, it would be the very last resort. If I ever had to claim benefits I would feel a complete failure and would never be able to hold my head high again.

Share this post


Link to post
Share on other sites

I think if you want 'value' you have to be prepared to make it yourself in the current market. There are plenty of sellers out there who are not prepared to go for 'silly offers'. They are either in no hurry to move or they need to achieve a certain price for one of a number of reasons.

To achieve this you need to be patient, know the local market very well, establish a good relationship with the local agents and be in a position to move swiftly ( which the OP is).

Every now and then there will be properties that come to the market that are relatively well priced, or they have come down in asking price and then the chain has broken and they return to the market. Try to find out the reason for the sale from either the agents or sellers, get an idea of what was paid and when, see what similar properties have achieved, then be prepared to try offers. 5% below asking on a well priced property may well be a better deal than 15% off an other that has been floated higher to allow for offers.

Share this post


Link to post
Share on other sites

.. I would feel a complete failure and would never be able to hold my head high again.

I'd feel the same sitting in an overpriced property drowning in debt. That's why I've never owned. It's made me a lot leaner and a cash purchase some day is not out of the question. Perhaps not in the area I'd prefer but that's life...

Share this post


Link to post
Share on other sites

If I ever had to claim benefits I would feel a complete failure and would never be able to hold my head high again.

An example of the effectiveness of propaganda.

Would you feel the same if you wrote off your car and had to claim on your insurance policy?

Or is it just because you've been conditioned into believing that social security = benefits that are only claimed by shirkers and the underserving?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 242 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.