I have now had an offer. It is almost 10% below the asking price. Given the current market situation, what are your comments?
MM
I have now had an offer. It is almost 10% below the asking price. Given the current market situation, what are your comments?
MM
Given the history of getting any offers at all, maybe see if you can negotiate it up a bit, but otherwise take it.
.andy
To email, substitute .nospam with .gl
Offer for what? Bananas?
the impact of a 10% reduction on your selling price rather depends on the price of the house. 10% of 250k is a lot different to 10% of
100k but if you are looking at it in percentages and can negotiate the price up by 5% /and/ get a genuine quick sale I'd go for it.RT
I know 2 people in the process of buying/selling at the moment and all 4 properties are said by the building society surveyors to be 10% overvalued. Sounds like official company policy.
Is it a justifiable 10%? What I'm trying to say is that if your house is perfect and the asking price is in line with the market then tell them to get stuffed.
If there's anything that arguably could need doing to the house then possibly.
sPoNiX
If you were a buyer I'd have said try an offer of 20% less.
Can you definitely say that your asking price is not 15% above its current market value. Only you can decide if the offer price is acceptable to you. If not hang on for another buyer, one may be a long next week, next month, next year and who knows prices may go up as the same speed as the flock of pigs just going over fall into land.
IANAL
If you think you'll still be able to afford a house where you want, I would accept it.
You could make the acceptance of (price-10%) subject to them exchanging contracts within eight weeks, and stipulate a higher figure for if things go past eight weeks.
Al
A mate of mine recently accepted about 10% less than asking price as the buyer was effectively a first time buyer and hence no chain. Ended up moving in less than 6 weeks because of this. He could have waited for more, but then he could have still been in his house now. Did get the solicitor(s) to verify his status of first time buyer before accepting though.
ISTR that MM has had problems (for whatever reason) selling this property. Seeing as he has seemed to keen to get it sold then telling them to get stuffed, whatever 'the market' may be rash. Assuming it is enough to get the next house, then from what I gather I would be tempted to go for the offer, maybe trying to get it upped a bit.
Asking price is £199,950. First offer yesterday was at £183,000. Final ("absolutely no wriggle room at all") offer is now increased this afternoon to £185,000. Advice I have received elsewhere says not to drop below £190K, which would represent a 4.98% reduction.
MM
tough one. seems obvious but if you've had plenty of offers, hang on for a better one but if offers are few and far between take it and be done with it.
what someone said previously about conditionally accepting the offer subject to completion within a given timeframe seems like a really good idea.
good luck
RT
Well thats only a 7.5% drop then, which seems a bit more reasonable.
In message , R Taylor writes
Seeing as acceptance of an offer isn't binding on either party anyway, I'm not sure what this would achieve. Assuming you did ask for such a condition, and then the buyers didn't achieve this for some reason then what - are you going o tell them where to go if you don't have another buyer?
Once people get into the process of buying a house, they start to commit to it both emotionally (e.g. planning where furniture will go etc.) and financially (e.g. paying for surveys, searches etc.). Once they get eight weeks in they are more likely to hurry their estate agent/solicitor up and get it all sorted rather than throw the towel in. This is even more likely if they have a buyer for their own property who also wants to get to exchange ASAP.
It won't work as well (a) if prices are stable or falling (b) if there are lots of similar properties available or (c) if the surveys/searches etc. are throwing up unexpected nasties. i.e. if it is a buyer's market or if the house isn't all it seems or exactly what the buyer wants.
There's nothing to stop you agreeing to let them have it at the original offer price even after the eight weeks. Let's just hope they don't have usenet - they'll be reading MM's mind otherwise! There's a thought - you could vet potential buyers or sellers by their usenet postings!
Al
It's a risk I'll have to take! And where else will I obtain such admirable and useful advice for peanuts? ;)
MM
By the way, I forgot to mention that earlier today I used a mortgage ready reckoner on the net (it just happened to be Britannia Bldg Soc) to see what effect another five or ten grand would have on repayments. Well, over 25 years it's hardly worth bothering about. Just a few more tins of Smartprice baked beans a month instead of caviare, sorted!
These were the figures:
Standard repayment mortgage over 25 years at 6.75% interest: Borrow £110,000 = £760/month
Borrow £100,000 = £690/month
Borrow £90,000 - £621/month
Obviously these are very much ballpark figures and take no account of changing market conditions. (Goodness! I'm beginning to sound like an Indipendant Fynahnschual Adwiser!)
MM
We have spiders in our house big enough to eat huge clusters of spiders. Unless the cats eat all the spiders. Or is it supposed to be old ladies?
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