Making an offer on a house

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  • malloc 28 Oct 2012 08:48:40 2,330 posts
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    How much is reasonable? Is there a point where I'm taking the mickey to offer so low that I'd get laughed at?

    Scenario:
    House put on the market for 260k. After not selling for a while the market price is reduced to 250k. Looking at the history of house prices on that street the most comparable house went for 225k a year ago. In that time house prices have gone down. Appreciate there's more to the house price than what other houses have gone for. If I made an offer for 220k, would that look ridiculous? I'd be knocking over 10% off the price.

    I'm a total n00b at all of this, anyone got any experience with all of this?
  • Tonka 28 Oct 2012 09:06:35 20,233 posts
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    Worst scenario is the guy says no. Then you raise it. Simple as that.

    We are selling a flat and one guy knocked 25% off the price. So we said no. Another knocked 15% off so we said no. When you get in reasonable range they'll make a counter offer.

    Don't take it personal.

    If you really want the place and you can afford it then make a fair offer.
    Otherwise: be an asshole.

    If you can read this you really need to fiddle with your forum settings.

  • Rusty_M 28 Oct 2012 10:18:00 4,652 posts
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    What Tonka said.

    Try to take what you can get. If they don't take that, go higher. My flat was on the market for 125000. I initially offered 115k. That was swiftly rejected. Eventually I got it for 121.5k. I think the homebuyer's report valued it at 122k.

    And now I want to get a house instead for some extra space, but I've been here 4 years.

    Edited by Rusty_M at 10:18:15 28-10-2012

    The world is going mad. Me? I'm doing fine.

  • elstoof 28 Oct 2012 10:23:27 7,026 posts
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    220k sounds reasonable enough, maybe even try 218k. I made an offer for my place 80k under which was turned down, raised it by 10k, still no. Estate agent said the vendor would probably take an offer 50k less so I offered that, next day he said add an extra 5k and its yours. Done deal. It's all about the haggle, if you offer too high you leave no room to negotiate and the vendor needs a bit of negotiation to feel like he's getting a good deal.
  • graysonavich 28 Oct 2012 10:28:44 7,320 posts
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    Ah, the north.
  • Trowel 28 Oct 2012 10:57:29 17,665 posts
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    Don't make it a round number - 220k will be seen as a figure you've plucked out of the air; something like 218k makes it seem like you've done your sums. And whatever you do, don't lose sight of how much you're actually haggling with - 1k on paper is 1000 out of your pocket.
  • BravoGolf Moderator 28 Oct 2012 11:03:56 12,740 posts
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    Your expected to negotiate. Do what Trowel said and make it sound like a calculated cost. I'd go even lower though, why not? Depends on the house of course, selling rate in the neighbour hood and so on.
  • Load_2.0 28 Oct 2012 11:04:41 19,155 posts
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    Get the whole lot in cash and knock on their window at 4am waving wads of dosh at them. Wear a top hat but no pants. You look like an eccentric billionare and they will know you have the upper hand in any negotiation.

    Serious house buyers always pay in cash.
  • boo 28 Oct 2012 11:50:45 11,756 posts
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    The best thing you can do is offer the asking price.
    In fact offering a couple of thousand more is a polite gesture, and pretty much guarantee's that the vendor won't spread cress in the carpets just before they leave.

    /is currently trying to sell a house

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  • mrpon 28 Oct 2012 11:53:55 28,774 posts
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    Trowel wrote:
    And whatever you do, don't lose sight of how much you're actually haggling with - 1k on paper is 1000 out of your pocket.
    Spread over the term it's peanuts.

    Give yourself 5 or gig, you're worth it.

  • malloc 31 Oct 2012 15:29:14 2,330 posts
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    @boo Finally! Some good advice :-)
  • Ginger 31 Oct 2012 15:43:46 6,830 posts
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    mrpon wrote:
    Trowel wrote:
    And whatever you do, don't lose sight of how much you're actually haggling with - 1k on paper is 1000 out of your pocket.
    Spread over the term it's peanuts.
    Also, you have to think about the fact that you're willing to walk away from a deal on a house you like for less than 0.5% of the price you're paying.

    That's like walking away from a 100 deal over 50p

    London open taekwondo champion

  • elstoof 31 Oct 2012 15:48:06 7,026 posts
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    On a typical 25 year mortgage 1000 smackeroos works out to 40 a year. Even with the interest it's about a fiver a month. Not worth missing out on your dream home for.
  • Dougs 31 Oct 2012 15:56:04 67,243 posts
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    That's pretty much the conclusion we came to - I know we probably could have got it for a couple of grand less if I'd played hardball but we hadn't seen a property so perfect for us as this. Or since really. It's small, but because it is perfect in terms of location and lay out, we're hoping to extend it to add the other bedroom we need.
  • THFourteen 31 Oct 2012 16:59:55 33,226 posts
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    Ginger wrote:
    mrpon wrote:
    Trowel wrote:
    And whatever you do, don't lose sight of how much you're actually haggling with - 1k on paper is 1000 out of your pocket.
    Spread over the term it's peanuts.
    Also, you have to think about the fact that you're willing to walk away from a deal on a house you like for less than 0.5% of the price you're paying.

    That's like walking away from a 100 deal over 50p
    He is Arsene Wenger AICMFP
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