What is the average % off for a starting offer on a house
Discussion
They say "if your not embarrassed, then it's not low enough".
£270k on a £295k is fine, £250k would be pushing the cheeky side of things.
I'd go in at £270k, if they refuse a last offer of £275k valid until close of play that day (to show you're not messing around). If they say no and you REALLY want it, play with stamp duty being paid by them etc.
£270k on a £295k is fine, £250k would be pushing the cheeky side of things.
I'd go in at £270k, if they refuse a last offer of £275k valid until close of play that day (to show you're not messing around). If they say no and you REALLY want it, play with stamp duty being paid by them etc.
You will get a range of answers on this one!
Up until the market went really stupid a few years ago, even 20% off would be a reasonable starting point. In London now, you risk seriously p*ssing off the agent if you take anything off of the asking price at all.
I'd only ever offer asking price if I felt that it was really under priced to start with, or it was something I was determined to buy because nothing else similar would be likely to come along.
You are looking to pay 6% below asking price, so I'd start at 10% off unless you feel the house fills either of those two criteria.
Up until the market went really stupid a few years ago, even 20% off would be a reasonable starting point. In London now, you risk seriously p*ssing off the agent if you take anything off of the asking price at all.
I'd only ever offer asking price if I felt that it was really under priced to start with, or it was something I was determined to buy because nothing else similar would be likely to come along.
You are looking to pay 6% below asking price, so I'd start at 10% off unless you feel the house fills either of those two criteria.
Offer what you a) consider it to be worth to you and b) what you can afford.
In this case, those numbers are pretty close. The worst you'll receive is a no from the seller.
There's no hard and fast rule.
However, bear in mind that when buying holiday homes, it's likely the owners aren't desperate or even under pressure to sell. Consequently, some owners are happy to list and wait till that magic number is achieved.
For example, I know of a home that's been listed since 2008! It's way over priced and has some truly questionable interior choices etc. But the owners are happy to wait as the home is worth it to them. - nothing stranger than home owners
In this case, those numbers are pretty close. The worst you'll receive is a no from the seller.
There's no hard and fast rule.
However, bear in mind that when buying holiday homes, it's likely the owners aren't desperate or even under pressure to sell. Consequently, some owners are happy to list and wait till that magic number is achieved.
For example, I know of a home that's been listed since 2008! It's way over priced and has some truly questionable interior choices etc. But the owners are happy to wait as the home is worth it to them. - nothing stranger than home owners
Personally, I would be wary of taking a "family home" off the market in a holiday home area and turning it into a weekend/summer place. There is some (partly justifiable) resentment in such areas at grockles/incomers pushing up house prices and driving local families out. Not such an issue if you are buying an existing holiday home or something that would now be unsuitable for a family (ie tiny fishermans cottage/anything thatched and twee)but a 2-bed semi is the sort of thing most locals starting a family would aspire to.
Just my opinion. Take it or leave it.
Just my opinion. Take it or leave it.
Contrary to popular opinion, agents can be really quite useful when offering.
You can start low and go higher, you can't start high and get lower!
Make your low offer verbally to the specific agent that is dealing with the property, don't leave a message with the details. Listen VERY carefully to his/her immediate reaction as this can tell you a lot, if there is interest their end, conversation, questions wanting to find out more about you then you're probably in the ball park and the agent who knows the vendor smells a deal.
If they take the offer, are completely disinterested and know the offer wont't be accepted they'll probably let you know they're sure it won't be accepted. If it's MILES away from where the vendor will accept they will either guide you to that bottom figure or just not even bother. Remember they only get paid if they sell the house, so it is in their interest to do a deal.
NEVER EVER say words like "I'll open with an offer of", "my first offer is", "see if they'll take xxx first", "Offer xxx but if they don't take it i'll see what I can do".
Sometimes, it is a good idea to justify your offer with using comparable sales, or by using your situation - "I'm offering xxx as I have borrowing agreed to that level".
There is no rule on how low to start, I have seen houses sell at 20%+ less than the value because of divorce, death or debt. Make sure to use the agent to your advantage.
P.S - the above usually works better if you have an agent who is 1) not a complete idiot and 2) commission based.
P.S - PM me the address and i'll tell you exactly how long it has been on the market, whether it has come on/off or gone under offer in recent times.
You can start low and go higher, you can't start high and get lower!
Make your low offer verbally to the specific agent that is dealing with the property, don't leave a message with the details. Listen VERY carefully to his/her immediate reaction as this can tell you a lot, if there is interest their end, conversation, questions wanting to find out more about you then you're probably in the ball park and the agent who knows the vendor smells a deal.
If they take the offer, are completely disinterested and know the offer wont't be accepted they'll probably let you know they're sure it won't be accepted. If it's MILES away from where the vendor will accept they will either guide you to that bottom figure or just not even bother. Remember they only get paid if they sell the house, so it is in their interest to do a deal.
NEVER EVER say words like "I'll open with an offer of", "my first offer is", "see if they'll take xxx first", "Offer xxx but if they don't take it i'll see what I can do".
Sometimes, it is a good idea to justify your offer with using comparable sales, or by using your situation - "I'm offering xxx as I have borrowing agreed to that level".
There is no rule on how low to start, I have seen houses sell at 20%+ less than the value because of divorce, death or debt. Make sure to use the agent to your advantage.
P.S - the above usually works better if you have an agent who is 1) not a complete idiot and 2) commission based.
P.S - PM me the address and i'll tell you exactly how long it has been on the market, whether it has come on/off or gone under offer in recent times.
Edited by FrankAbagnale on Tuesday 27th January 17:03
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