House price negotations

[MatteH Oxford]

Offer them £1.

If no else offers anything for it, then the house is 'worth' £1. They might not want to sell it at that price though!

 

[Morba]

If I offer for example £195k

Agent/owner may say, they will not take anything less than £210k
So now you have the price they want.


Diamond,
I wonder how much over the odds you may have paid, on all your houses you have purchased.

Over the odds, but under asking price and a price you are happy to pay.

 

[DM]

If I offer for example £195k

Agent/owner may say, they will not take anything less than £210k
So now you have the price they want.


Diamond,
I wonder how much over the odds you may have paid, on all your houses you have purchased.

Not a penny, because i put a reasonable offer in the first time and stick to it.

I must admit as i have got older i have lost patience with the 27 phone call to save 3 grand carry on.

 

[Morba]

To some people that 3k means a lot though, so can understand why it's worth haggling.
When £3k doesn't really matter (which to you it doesn't DM) then it's a different thing

 

[jack.mitchell]

Righto. I absolutely 100% guarantee iv bought more houses than you have had hot dinners and the number of times the low ball offer works, its not worth the 27 phone calls and ****ing about.

Yeah not worth 27 phone calls over a house you're going to have a month as it sounds in your situation, but for a property you're going to live in for the next 10 years or more, 27 phone calls may be the difference between fitting a brand new 10 grand kitchen or lumping it.

 

[Pestilence]

Not sure all the hassle is worth it for about 3k that you'll barely even notice on a mortgage, for for 10k+ it's definitely worth the effort. That's a new home cinema system and refurbed entertainment room right there!

 

[MatteH Oxford]

Not a penny,

In 'your' opinion of the price maybe, a house is only worth what some is willing (& able) to pay for it. You might have had a lower offer accepted because you were the only person looking to buy a particular property.

Depends on how motivated the seller is but if no one else offers (or offers higher than you), then they don't sell, regardless of the so called 'market value'.

 

[DM]

Sorry all, i shall stand down and be corrected by Morba

 

[Sagalout]

By the sounds of it unless you have a very large deposit you might struggle to get a valuation anywhere near £215k anyway.

Lots of houses are falling through at the moment because buyers and sellers may be happy with a price but the banks lending the money don't agree. If that house was £195k 18 months ago then unless there have been significant alterations / extensions etc its going to be worth about the same now.

 

[regulus]

I've bought 3 houses in my life. The closest I've come to asking price was 15k. With other words, they wanted 220 and I got it for 205. The other two occasions was 18k under and 22k under.

 

[eatcustard]

Not sure all the hassle is worth it for about 3k that you'll barely even notice on a mortgage, for for 10k+ it's definitely worth the effort. That's a new home cinema system and refurbed entertainment room right there!

3K is 3K

Ring agent, put in offer, hang up
Repeated until offer accepted
How is that hard?

 

[Duff-Man]

Go in first with £197k.

You'll probably be called back within 20 minutes with a refusal -- during which time the agent probably set the phone down, twiddled their thumbs, then called you back to say the vendor refused.

You then say that you need to think about it further, and will get back to them.

Around and hour or two later, call them back and offer £205k. It might take them a little while this time as they'll actually check with her.

If it's a refusal, tell them that you're not willing to go higher at this point in time, as there are other properties you're interested in that you wish to go begin negotiations on.

It's a given they'll then call you repeatedly over the next couple of days to see how you're feeling about it. Drag it on, telling them you haven't exactly given up, but things are looking good and not progressing so slowly on a different property at a similar price.

If they haven't relented, tell them (flippantly during the conversation) that the last you'll be willing to jump to on this one is £212k, if they can guarantee a quick turnover of the property.

Job done. Or, you walk away at this point because she's a stubborn bitch.

^^^

What he said

 

[helpimcrap]

^^^

What he said

but i'd go up in much smaller increments. if you go up £5k that says to me you've got more.... if you go up £3k then he might he's close to losing a sale...

i did that with mine - went up in £500 increments in end. Got it for £20k less than another person with a similar house in my close was asking. £20k is relative as i got a 2bed semi in a nice area for less than £100k.... so you might do £40k lol...

 

[Mercenary Keyboard Warrior]

Simple rule, a house is worth what someone is willing to pay. Thats the true value, not the guesstimation an estate agent makes. They mostly look at what similar properties sold for, and on a bit hoping that means they get the business.

Then after a few weeks/months they pressure you to reduce to the more sensible value.

But no matter what you can never get away from the fact someone somewhere has to be willing to buy it, then its just a matter of how much its worth to them.

People get hung up on "house valuations" thinking they mean something, they are typically a 10-15% either way guide price.

Offer something silly, you never know, but it this case sounds like she holding out for top dollar which she probably won't get. But if shes not seriously intending to move, ie has anotehr propery lined up she may well not accept anything other than top dollar.

 

[Sagalout]

But no matter what you can never get away from the fact someone somewhere has to be willing to buy it, then its just a matter of how much its worth to them

That's only really true for a cash buyer. If you're borrowing the money the valuation is pretty important

 

[Morba]

Sorry all, i shall stand down and be corrected by Morba

? I've not corrected anything that you have said.
You openly talk about assets and openly admit to throwing money after money at things, so £3k will not mean anywhere near as much to you as it will to a FTB who is trying to save money.
I was supporting what you were saying.

 

[NotAGolf]

By the sounds of it unless you have a very large deposit you might struggle to get a valuation anywhere near £215k anyway.

Lots of houses are falling through at the moment because buyers and sellers may be happy with a price but the banks lending the money don't agree. If that house was £195k 18 months ago then unless there have been significant alterations / extensions etc its going to be worth about the same now.

Maybe a bit of retarded question but what's a deposit got to do with it? We've got ~30%. Is it because they've got that money and that covers any 'false value' of the house?

 

[Morba]

Good question that. If the mortgage is agreed in principle then what difference does the deposit amount make?

 

[BennyC]

you just phone up, say you want to make an offer and give them the figure. They are obliged to pass the offer on to the vendor, and give you a response.
It is as simple as that, if it's rejected then you can say you want to put another offer of x in.
Strictly speaking the estate agents can't give you details of other offers, but they might drop hints, at the same time those hints could be just to push you into a higher price etc = higher commission.

I had an estate agents let me know that a property I wished to view was already under offer for a few thousand under asking price. She didn't disclose the exact amount but from that it was too much for me.

Why would he lie, he would be stupid not to look at other properties.

Exactly. I told an estate agent that I'd looked at 7 other properties and just listed off local areas when in reality I've seen two so far. Last thing you want to do is let them know you're desperate or keen for a property. Nothing wrong with putting an offer in soon if neither the vendor or EA knows how much you want it. Let them know and you're basically presenting yourself for a buggering providing you are prepared to pay up to asking price for it.

Best of luck with the purchase I'm almost in a similar position to yourself right now

 

[BennyC]

Maybe a bit of retarded question but what's a deposit got to do with it? We've got ~30%. Is it because they've got that money and that covers any 'false value' of the house?

In essence they don't want to have invested more capital into the property than it's worth to them or what they feel they'll get for it. Otherwise they'd risk ending up not making back the amount loaned initially.