Buying a house - offer etiquette?

[nammynake]

We are hoping to make an offer on a property being sold below Market rate (based on previous sales in the street). The property is being sold via an estate agent as part of a part exchange, hence looking for a quick sale. What would be the typical first offer? Advertised at 150k, and Market value is probably 160k. Thinking of offering 145, but should we start lower and try our luck?

[MATTP77]

Im in the same boat entirely.

I havent had advice at all but im looking at properties around 140k, and i would most definately go in with a ludicrous bid initially. At the end of the day.... I really dont see what harm it would do?

If i was the chap selling and i had an offer 20k below the asking price i would simply reject (if i saw fit).

As i say, for a house on the market at 140 i would start 120 i think.. i certainly would try EVERYTHING to pay less than the list price, even if it was just retaining solicitors fees and what-have you.

[fergywales]

Personally, I would offer them £135k and see what the reaction is. Do not get sucked into any fear of alienating the vendor, you have the upper hand as the purchaser.

How long has the property been on the market?

I have had estate agents laugh when I have given a first offer upto 20% below asking price in the last couple of years, had it rejected, offer a couple of grand more and said the ball is in their court. Both came back accepting offer. Both had been on the market 9+ months.

[anonymous-user]

If you think it's already cheap, offer the asking price or somebody else will.

The market isn't that stagnant

[SteveScooby]

Our house as up for £116k, initially offered £95k and agreed on £104 a few days later.

I'd always offer low first, you can always increase your offer if it's rejected.

[cannedheat]

Isn't the rule that, if you don't feel embarrassed then you've not offered low enough... :-)

[cqueen]

cannedheat said:

Isn't the rule that, if you don't feel embarrassed then you've not offered low enough... :-)

Yes. I absolutly felt embarresed, but it got me a great base point to start negotiating

[anonymous-user]

Bookmarked to see how this turns out! a good yardstick for the market as we've had a cracking couple of months on sales

[anonymous-user]

80 - 85% depending on how long its been for sale etc.

[nammynake]

It's only been on the Market for a week or two. We definitely want it but I guess are worried of other offers coming in. We would hate to miss out. I realise it's a buyers Market now and would hate to be beaten to it, hence thinking of a higher offer.

[anonymous-user]

anonymous said:

[redacted]

Bot really as they are intrinsically linked. Hence why i suggested he pays the asking price if he thinks it's cheap.

However, that is the key question as you mentioned.

[marky1]

I bought a place in London once 35% below asking, never be afraid to go in low, can always go up, very hard to go down.

[bigandclever]

While I would ordinarily agree with the 'low offer, see if it sticks' reasoning, the OP has said they definitely want it, they definitely don't want anyone else to have it, it's (apparently) on for less than market value (which I would question), it's only been on market for a couple of weeks - surely an offer of asking, or very near, with all the usual caveats of get it off the market NOW, get the agent to tell any currently interested parties it's gone, get it off all electronic resources, and so on, is the obvious choice?

Or am I gullible fool

[fido]

133k - dunno why - but it sounds like a well thought out number.

[marky1]

bigandclever said:

While I would ordinarily agree with the 'low offer, see if it sticks' reasoning, the OP has said they definitely want it, they definitely don't want anyone else to have it, it's (apparently) on for less than market value (which I would question), it's only been on market for a couple of weeks - surely an offer of asking, or very near, with all the usual caveats of get it off the market NOW, get the agent to tell any currently interested parties it's gone, get it off all electronic resources, and so on, is the obvious choice?

Or am I gullible fool

Yes but when we all buy a house we all want it. You have to remain emotionally unattached to get a good price. That would be my advice.

[Seeker UK]

I'd go £120K and take it from there.

If the estate agent is any good, he will be advising both sides to come to a reasonable deal.

[illmonkey]

We went in at 80% and settled on 90% with them paying half the stamp duty. It had been on the market for a bit and lowered too. Wasn't in the best state either, I'd hope to achieve their market value now due to what we've done.

[nammynake]

Update:

We had a meeting with my OH's bank today, and we now have a 'mortgage promise', which we are happy with in terms of amount and interest rate.

I spoke with the estate agent and she informed me that because they are selling the property on behalf of a property developer (David Wilson I think), any offer we make will not be accepted with an 'immediate removal from market' condition. We were informed that the company selling the property will take the highest bid, similar to when a repossessed property is sold.

So if there is plenty of interest, it's going to be a bidding war I fear. I suppose all I can do is make an offer, and then subsequent offers when/if out-bid, obviously setting myself a maximum that I'd be prepared to go to.

[MATTP77]

so is this like a "sealed bid" scenario?

/puts envelope on desk

:*(

[scotal]

nammynake said:

We had a meeting with my OH's bank today, and we now have a 'mortgage promise', which we are happy with in terms of amount and interest rate.

I appreciate your oh works for a bank so the terms and conditions are more certain than most applicants can get, but in general terms they aren't worth the paper they are printed on.