House purchase price negotiations help

[FPC]

So we've found a house we like. It's not my dream place but it ticks most of the boxes. We're first time buyers.

House is up for £300k, recently reduced from £310k asking I believe.

I put in offer of £275k today. It was rejected and suggested that £290k would secure a sale.

I can afford some more but want to achieve the lowest possible sales price.

Any advice on my next steps or tactics?

[touching cloth]

Go up a bit but ensure the agent is portraying you as dream buyers, first time with no chain, mortgage agreed in principal, flexible on dates etc etc.

[BoRED S2upid]

Its a buyers market, I wouldn't increase your offer too much.

[Duke Thrust]

BoRED S2upid said:

Its a buyers market, I wouldn't increase your offer too much.

Not 100% sure about that - I know when were were looking there was very little choice. Depends on what you're after I suppose, but speaking to friends & relatives in the industry, it seems to be picking up nicely.

[TUS 373]

Time of year helps. Last week and this week will be busy, then market will go dead as there will not be enough time for people to complete before the end of November.

Best tip is to start bidding in odd numbers i.e. don't go £390K, go £387,750. It shows that you are serious, have coppered carefully, and at the end of your budget.

[FPC]

touching cloth said:

Go up a bit but ensure the agent is portraying you as dream buyers, first time with no chain, mortgage agreed in principal, flexible on dates etc etc.

Thanks, have already discussed with agent but no harm in pressing home the point.

Sellers haven't yet found a place to buy - they may rent, may buy somewhere according to agent. Slightly worrying.

If it was up to me I think I would say £275k take it or leave it as I'm not wholly sold on the place. However, Mrs FPC is besotted and would probably have offered asking if I had let her!

[JustinP1]

FPC said:

It was rejected and suggested that £290k would secure a sale.

Was that by the seller or their agent?

[hornetrider]

Remember the agent works for the seller, not you. IMO (and I have done this in the past) is that you need to state when making an offer that it is the final offer, and that it will remain on the table, as it is your limit.

Otherwise the agent will keep saying 'no' as you up your offers. Holding out for 290 on a 300 asking in this climate is risky if you ask me.

[FPC]

JustinP1 said:

FPC said:

It was rejected and suggested that £290k would secure a sale.

Was that by the seller or their agent?

The agent. We haven't spoken to the sellers.

[Funk]

When I was bidding on my place a few years back, I had the same 'spiel' from the agent. Property on market for £160k, I offered £145k..

Agent: "No, but if you went to £150k they'd definitely sell."

Me: "£147,750 then, final offer. Remind them I'm FTB with cash, and I want the deal done by the end of the week."

It was accepted.

[silver.fox.2008]

If they said 290k, simply say you'll meet them half way and do a deal at say around 283k.

Put a time limit on it. I'm sure they'll take it. Plus the agent has already given you some indication they might be in a rush.

What was it's last selling price?

Unless your offer puts them in negative equity i'm sure they'll see sense eventually

[renmure]

BoRED S2upid said:

Its a buyers market, I wouldn't increase your offer too much.

But only if the sellers will sell at the price offered.
Otherwise the OP will have to keep looking for somewhere to live that they like enough to want to buy it.

I appreciate the above is stating the obvious and that everyone wants a bargain and all that, but in percentage terms is the £15k difference really worth not getting the house you want for?

I am selling a couple of properties at the moment, one of which is in a similar price bracket. The notion that the seller will "see sense" and accept something mid-way between your £275k offer and their £290k asking price works both ways. I would be waiting for the buyer to "see sense" and offer the £290k so they can secure the house they obviously want. All individual circumstanses tho I guess. Good luck either way.

Edited by renmure on Monday 19th October 15:10

[f13ldy]

On the 2 properties I have i've paid pretty much bang on asking for both, mainly because they were perfect for us.

If it isn't perfect that should be reflected by your offer, if you feel you are going to be disappointed if someone else snaps it up, increase your offer accordingly.

Don't listen to the Mrs, every house you view will be her dream home if she is anything like mine.

There is very little choice out there at the moment though I found.

[eps]

It's a game of poker...

You have to gauge how much the vendors need to sell.. and how much you want the property..

Ask yourself this, if someone came along now and offered 290k would you be annoyed at not offering it?

I guess you've seen the property at least twice? If not, see it again, arrange a viewing, stating you want to refresh your mind about the location and the actual property itself, maybe even take a family member along to get their PoV..

I'd stress the positives, that you have in your favour, No chain? Cash/Mortgage arranged, etc.. Ready to move, blah blah..

Then state your position or ask the estate agent what they feel the lowest offer is that the vendors would accept.. Ask if there have been any other viewings or interest in the property, indicating that the Christmas/NY period is coming and people won't want to view houses around then.. Ask if any other offers have been made on it, if so when and how much. Ask how long it's been on the market for..

Feel happy to go up in few K increments or "meet them halfway" - wanting it taken off the market as you're moving substantially from your initial position, etc..

If they're happy to rent, it sounds like they're not in a hurry to move..

Of course the more you nail them down on the price the more they'll try to (within their rights) remove from the property, even if they can't use it (i.e. curtains and curtain poles, etc..) and they'll be more likely to be less careful when removing them..

[FPC]

f13ldy said:

If it isn't perfect that should be reflected by your offer, if you feel you are going to be disappointed if someone else snaps it up, increase your offer accordingly.

Don't listen to the Mrs, every house you view will be her dream home if she is anything like mine.

There is very little choice out there at the moment though I found.

I'm not going to be disappointed if we don't get this. And, yes, the Mrs does fall in love with seemingly every house we look at! I might be in the bad books if we don't get this one...

There does seem to be reasonable supply out my way (North Bucks).

[FPC]

renmure said:

I appreciate the above is stating the obvious and that everyone wants a bargain and all that, but in percentage terms is the £15k difference really worth not getting the house you want for?

£15k is still a chunk of money. I could get a pretty decent 'fun' car for that.

[eps]

Aylesbury (ish) area??

It might also depend on schooling.. Of course I'm sure you're aware Bucks still has Grammar schools.. Which are highly sought after.

I know of one couple who moved from Oxon to North Bucks when their children approached secondary schooling age...

[renmure]

FPC said:

renmure said:

I appreciate the above is stating the obvious and that everyone wants a bargain and all that, but in percentage terms is the £15k difference really worth not getting the house you want for?

£15k is still a chunk of money. I could get a pretty decent 'fun' car for that.

I do appreciate that and wasn't meaning to seem off hand with your cash or smug. (honest)

It's just that in the grand scheme of things the figure didn't seem that significant in terms of the circa £300k purchase price given that the purchase is somewhere you intend to live in, and presumably want to live in. Your £15k 'fun' car will be nice phase to pass through and enjoy and will probably make a nice £7.5k 'fun' car for someone else a couple of years down the line.

[FPC]

eps said:

Aylesbury (ish) area??

It might also depend on schooling.. Of course I'm sure you're aware Bucks still has Grammar schools.. Which are highly sought after.

I know of one couple who moved from Oxon to North Bucks when their children approached secondary schooling age...

Further North. I could hear some form of motorsport taking place at Silverstone while I was viewing this weekend!

Yep, live locally already so I know the area.

[andy43]

Post the house details on PH so people can phone up and offer 195?