Discount on asking price - house.
Discussion
An empty property has come onto the market, it sold a couple of years back following the death of the house owner at that time. It sold for around 30% less than the current asking price and I imagine that a speculator/developer purchased the house. The interior images of the property show some small cosmetic changes have been carried out. However, nothing substantial to the fabric or structure is mentioned as being attended to and therefore I assume that type of work was not required or its been glossed over. I will of course know that when I inspect the property. My guesstimate is that perhaps 4k may have been spent on a tiled floor in the kitchen/diner and new kitchen fitted (looks like a B&Q model). Assuming the place is all OK I am deliberating on where to pitch my offer in this difficult market. The property has an asking price of 315k and has been on market for about six weeks or so and is IMO overpriced by around 30k, would an offer of 275k be an insult or a blessing to the vendor. Last thing I want to do is pee off the vendor before we hardly start negotiations.
Jimboka said:
How would you react to similar offer when you are selling?. Expect the same from them.
But shirly that's not relevant as there are many factors and ultimately it's in the buyers interest to pay the least amount possible. Feelings and opinions are immaterial IMHO and it's impossible to tell how the vendor is going to react. They could be completely desperate and glad for any offer or be chancers after maximum profit (unreasonable or otherwise).I personally wouldn't be bothered if someone came in with a seriously low offer on my house. If I didn't want to sell I'd say no. Can't blame anyone for trying but I guess the vendor could be different.
However the thing that would be running through my mind is the fact they bought at the price they did under those circumstances.
CaptainSlow said:
If it's that over priced I'd sit it out until the vendor dropped the price, then make an offer on the new lower price.
That could take a long time. There seems to be quite a disparity between what owner/estate agents want for a property and what it's really worth. A friend of mine is trying to sell a 2-bed semi for £150,000 for well over a year now and it's not worth that much. It was reduced a few months ago by the princely sum of £2000.freenote said:
Fatman2 said:
However the thing that would be running through my mind is the fact they bought at the price they did under those circumstances.
Why out of interest?Fatman2 said:
Jimboka said:
How would you react to similar offer when you are selling?. Expect the same from them.
But shirly that's not relevant as there are many factors and ultimately it's in the buyers interest to pay the least amount possible. Feelings and opinions are immaterial IMHO and it's impossible to tell how the vendor is going to react. They could be completely desperate and glad for any offer or be chancers after maximum profit (unreasonable or otherwise).I personally wouldn't be bothered if someone came in with a seriously low offer on my house. If I didn't want to sell I'd say no. Can't blame anyone for trying but I guess the vendor could be different.
However the thing that would be running through my mind is the fact they bought at the price they did under those circumstances.
ringram said:
Fatman2 said:
Jimboka said:
How would you react to similar offer when you are selling?. Expect the same from them.
But shirly that's not relevant as there are many factors and ultimately it's in the buyers interest to pay the least amount possible. Feelings and opinions are immaterial IMHO and it's impossible to tell how the vendor is going to react. They could be completely desperate and glad for any offer or be chancers after maximum profit (unreasonable or otherwise).I personally wouldn't be bothered if someone came in with a seriously low offer on my house. If I didn't want to sell I'd say no. Can't blame anyone for trying but I guess the vendor could be different.
However the thing that would be running through my mind is the fact they bought at the price they did under those circumstances.
Perhaps it is worth having a chat with the estate agent to get an idea of likely response?
Monty Python said:
CaptainSlow said:
If it's that over priced I'd sit it out until the vendor dropped the price, then make an offer on the new lower price.
That could take a long time. There seems to be quite a disparity between what owner/estate agents want for a property and what it's really worth. A friend of mine is trying to sell a 2-bed semi for £150,000 for well over a year now and it's not worth that much. It was reduced a few months ago by the princely sum of £2000.Surely this developer is just hoping some muppet pays close to the asking price so he can make a quick buck. If he can afford to hang onto an empty property for a couple of years he's probably got a few quid and in no rush to sell. At the moment, therefore, he probably won't be willing to drop the price much. In a few months he may be more willing to negotiate though if it hasn't sold.
Edited by CaptainSensib1e on Thursday 5th January 17:48
Jimboka said:
OK, if I advertised my house for £315K & somebody offered £275K I would be upset & would not talk to them again!. That is what should be avoided. But then again I would price my house realistically in the first place. Also I have not purchased a house since 1995 & dread ever having to do so again in the future.
Perhaps it is worth having a chat with the estate agent to get an idea of likely response?
I think this could be a sensible approach i.e. talking to the agent first, but in a lot of cases an agent will say it's not a good idea as it'll affect his/her commission.Perhaps it is worth having a chat with the estate agent to get an idea of likely response?
At the end of the day we're all different and whilst you would clearly be offended, not everyone will react the same way. We can't always trust the judgement of an agent so we can only do what we think is best.
An extreme example but some friends put in an offer of £250 on a house that was up for £350 and it got accepted. I think it was a combination of it being on the market for well over 12 months, falling prices and hence it being overpriced (due to some reluctance by the vendor to drop). It was probably worth £300 by the time the offer was made but still, if you don't ask and all that.
I always look upon these things by relating how long I'd have to work to save £XX. If I can save £10k then I can effectively take a month off work and be in the same financial situation.
Thanks for all comments/advise. The property is individual being a country cottage which has survived in the middle of a small town, although some other very old houses are quite common in the town. I am talking here of a cottage with a thatched roof and oak frame, I think its the only detached cottage but a couple of semi detached cottages are also in the town. My own home is a thatched oak framed cottage so I know some of the drawbacks of such a place, as well as the upsides.
I think I will, as some suggested here, have a chat with the agent, perhaps have a look around the place and show zero enthusiasm but signal interest in a kinda mull it over and look at some other property.
A previous property I purchased went sour as I pitched to low, back in 1997. The builder / vendor took umberance and it was an unpleasant transaction which led to small claims court. We agreed a price eventually but he failed to honour part of the works contract. I don't want to be in that situation again, hence treading very carefully.
I think I will, as some suggested here, have a chat with the agent, perhaps have a look around the place and show zero enthusiasm but signal interest in a kinda mull it over and look at some other property.
A previous property I purchased went sour as I pitched to low, back in 1997. The builder / vendor took umberance and it was an unpleasant transaction which led to small claims court. We agreed a price eventually but he failed to honour part of the works contract. I don't want to be in that situation again, hence treading very carefully.
crankedup said:
An empty property has come onto the market, it sold a couple of years back following the death of the house owner at that time. It sold for around 30% less than the current asking price and I imagine that a speculator/developer purchased the house. The interior images of the property show some small cosmetic changes have been carried out. However, nothing substantial to the fabric or structure is mentioned as being attended to and therefore I assume that type of work was not required or its been glossed over. I will of course know that when I inspect the property. My guesstimate is that perhaps 4k may have been spent on a tiled floor in the kitchen/diner and new kitchen fitted (looks like a B&Q model). Assuming the place is all OK I am deliberating on where to pitch my offer in this difficult market. The property has an asking price of 315k and has been on market for about six weeks or so and is IMO overpriced by around 30k, would an offer of 275k be an insult or a blessing to the vendor. Last thing I want to do is pee off the vendor before we hardly start negotiations.
Surely you go and view the house, make a decision if it is suitable then get it surveyed and valued.This will point you in the right direction at what the actual value of the property is, you can then make a balanced decision on the price you offer.
jas xjr said:
An offer of £249,999 would be a good start
If I were the seller I would instruct the agent to refuse such an offer and tell them that they should refuse any further offers from the same person without needing to contact me, as I simply would not sell to that person.I'd have no faith that a person taking the piss like that would actually go through with the transaction without being an arse about the agreed price just before exchange.
onomatopoeia said:
jas xjr said:
An offer of £249,999 would be a good start
If I were the seller I would instruct the agent to refuse such an offer and tell them that they should refuse any further offers from the same person without needing to contact me, as I simply would not sell to that person.I'd have no faith that a person taking the piss like that would actually go through with the transaction without being an arse about the agreed price just before exchange.
Someone loves your house but wants it at a great price. Its up to you to refuse or not. Fair enough tell the agent to refuse immediately (I've done that in the past), but to not sell to that person when they up their offer to something you would be happy to accept is mental.
A low offer doesn't mean they will be a bugger to sell to, or cause any problems.
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