House price negotiation ...

Do you know the area(s) you might move to? Many places have changed a lot over the last 20 years. I recommend renting somewhere first for a while and getting a idea of the area.

The other thing to consider when buying a house in a new area, whethr you are moving in the UK (as we are doing at the moment) or coming from abroad, is whether the area you are moving too offers the right opportunity for you to build up a social circle.

We did a prospecting visit and viewed a house area, but apart from the house not being what we wanted, we had a good look round the small town it was in, read noticeboards, looked in shops and did a bit of googling, but in the end crossed the town off our list as well, because to take up activities that we enjoyed we would have to get in our car and drive to one or other of the several local towns nearby.

Nansnet when my daughter and son in law brought their latest home they paid £12,000 over asking price as they didn't want to lose it as another buyer was going to pay £5,000 over asking price. Once their off was accepted they insisted it was taken off the market.

Also beware of being in a long chain as that has more chance to break . As you are cash buyers you may be better looking at properties of deceased or people who have gone into a home as there won't be a chain but the place will need work.

Make a list of what you are prepared to do and what you don't want to do. Another list of what you want and don't want in your new home eg how many bedrooms,type of property.
List of areas you like and if you can visit the areas. Think of access and weather conditions during different seasons. I live in the north west now we rarely get snow but have very high winds as I live not far from the sea and lot of rain . West Midlands where I moved from the area I lived we always had heavy snow . My last winter there I was snowed in for a week with 9" of snow . Also where I lived was very hilly but here it's flat.

Will this be your forever home if so think about how you will manage as you get older . Also can you manage the property on your own if one of you dies . I know it's a horrible idea but you have to think about things like this especially as you get older .

Thank you all, for your advice. I must say, I'm not particularly looking forward to the whole process! It all sounds so stressful!

I did read somewhere that offers of 5-10% less than the asking price were suggested, although I did think that was rather pushing it a bit! I was thinking more in the region of 3-5% wasn't too insulting an offer to begin with? However, I do realise that in a nice location, it's unlikely the vendor will need to reduce the asking price at all.

My DH is someone who likes think he's getting a good deal, whereas I'm more the sort of person who, if I see the house I want, I'd be happy to offer the full asking price! I can see a few arguments brewing! Wish me luck!

Romola

"Offers in excess of" is how property is priced in Scotland. The whole process is quite different there, arguably more straightforward than in England and Wales. Solicitors act as estate agents there. If property does not attract the asking price, the solicitor/estate agent might ask for sealed bids from interested buyers. Once an offer has been accepted, that is binding and neither party can go back on it.

Most properties in Scotland are advertised by estate agents. Verbal acceptance is not binding. The process is:
House prices in Scotland can be advertised in various forms including "Offers Over", "Offers in the Region Of", or "Fixed Price".
If you are interested in purchasing a house your solicitor "Notes an Interest" to the seller's solicitor. You may, or may not, make an offer at this point, if the house is likely to go to a closing date it is better not to offer unless you can offer enough to prevent that happening. Whilst the estate agent and/or solicitor prefers any bids go through them you can negotiate with the seller directly.
A "Closing Date" is the Scottish equivalent of English “Sealed Bids”. If there is enough interest a seller may decide to set a "Closing Date" when the interested parties can submit their best offer.
The contract is not binding by verbal acceptance, the "Missives" (the terms of the contract) are drawn up by the solicitors and the contract is binding once these are exchanged (signed).
I gave sold/purchased a properties both in Scotland and England. Both systems have their positives and negatives but in all cases the support of the solicitor is key. I've completed purchases in Scotland within two weeks, they were exceptionally helpful solicitors and uncomplicated properties

"Offers in excess of" is how property is priced in Scotland. The whole process is quite different there, arguably more straightforward than in England and Wales. Solicitors act as estate agents there. If property does not attract the asking price, the solicitor/estate agent might ask for sealed bids from interested buyers. Once an offer has been accepted, that is binding and neither party can go back on it.

Some prices are quoted as 'offers in excess of' meaning the figure quoted is the minimum the seller will accept and they want more. We have just lost a potential purchase where the person now buying wa prepared to pay more than we thought the house was worth and well in excess of the minimum price.

Other times if several people are interested in a house, it will go to sealed bids and the highest bid wins. These can also go well over the asking price

Finishing.

The same thing happened to my friend - house on market and a very keen buyer offered the full asking price. (I thought it odd as I felt the house vastly overpriced with a lot of work needed). However, he seemed genuine and befriended her DH and they were meeting most afternoon at the local pub for a pint and a chat.
It all hit the buffers when an EA from a different branch recognized the prospective purchaser as a fantasist, although he’d previously come to light subletting out a house he was renting to half a dozen Uni students in Durham.
We were very lucky here, as the small private builder liked our previous house and bought it to let out.
As there wasn’t going to be any last minute dramas, he gave us the keys to this house long before we exchanged contracts, so we could get fitted wardrobes in some bedrooms and carpets, curtains and light fittings organised. He also build kennels to DH’s specifications in the garden.

Nansnet is in an enviable position and EAs should be very helpful - after all, it’s the buyer who really calls the shots re. offers.
A new build will probably be a fixed price, unless it’s a plot that isn’t selling or one of the last remaining sites on a development where the builder wants to tie it all up and move on. Most builders offer ‘finish touches’ at an extra cost, but these are often negotiable.

Not about buying more about selling
Be wary of the purchaser who offers the full asking price. That happened to us. Remember the saying if it looks to good to be true it probably is.
Almost as soon as the property went on the market to our surprise they offered the full asking price and said they were cash buyers. They were slow acting then they said they needed a mortgage for alterations They said they would think and sent a builder round Close to completion an even lower offer came in which we rejected
Talking to friend’s daughter who was an estate agent. When I described them said they had a reputation.

The north and Wales cheaper than Midlands and South

Not all of Wales as prices have shot up with many people commuting to England now.

well you can go down if you make the offer subject to survey

Are you cash buyers?
If so, that could be a deciding factor if you are not buying a new build.

A cash buyer made an offer of the full asking price on our old house; someone else offered more but they had not even put their own house on the market and would have needed a bigger mortgage too.

We accepted the cash buyer, partly because we needed to move quickly and partly because it involved less stress.

Start lower, you can always increase your offer but not go down.

it depends where you want to move to, too
some areas it is common to pay asking price or above, other asking price or below!

market has stabilised so properties seem higher again

The market will dictate the price, a property is only worth what a prospective purchaser/s are willing to pay for it and not necessarily what the owner thinks they can sell it for. Other factors are whether a property is being marketed in a buoyant or sluggish market, some areas can buck the trend, much depends on where you intend to buy. Look on Right Move to see how quickly the turnover is the area/s you favour, be sure to click on the "sold subject to contract" whilst doing that. Try and gage the level of interest in the property you are interested in from the agent involved, although you can't always take everything they say on face value it's in their interests to sell a property and a bit of poetic licence may come into play.

We sold our last house when the market peaked, our agents managed that within a week having arranged an open day, which produced three offers, two at the asking price and one just below. Previously we'd put it on the market a couple of years before that and got an offer some £60,000 below the asking price. Well that's the prerogative of a prospective buyer, to be bold, ridiculous even in chancing their arm, but also the prerogative of a vendor to turn down such an offer, which we did. At that time we went back to the drawing board, it wasn't imperative for us to move, with the thought maybe the time isn't right just now. So that's an example of the difference between the market being sluggish and literally going mad, needless all sorts of factors come into play with house buying and selling, certainly the pandemic made a lot of people reassess their lives, particularly as to where and how they wanted to live.

Good luck to you in your house search and hope you find something that suits you.

When I last moved it was to a desirable area and a doer upper house and I was in competition with a builder. It was because I met the vendor and talked to her (a quaker) that I got the house.. but for the full price. It is very dependant on how much competition there is and the location in my experience.

So much will depend on the local market - slow or very buoyant. And on whether the property has been priced realistically or optimistically. There are certainly vendors who insist that their house is ‘worth’ rather more than anyone is going to be prepared to pay.

Doing your own research via the likes of Rightmove and Zoopla will inform you as far as poss. I particularly like the ‘reduced’ feature on Zoopla - and seeing how long the place has been on the market is usually a good indicator.

If you are moving without a house to sell then you are in a strong position.

If a house has been on the market for some time you may be wise to offer low, if it’s new to the market and you love it then put in a more reasonable offer.

Show proof of funds to the agent before offering and have all you ducks in a row, all offers are subject to survey so you can always adjust the offer if there are problems.

Use a good solicitor, don’t be tempted to save money with a cheap conveyor!

Good luck.

Good luck in your move back to UK Assume you know the area and the type of property you are looking for (flat, bungalow, detached/semi detached house, etc. etc.
Then a regular search on such sites as Rightmove will give you a pretty good idea as to the sort of prices that type of property normally sells at. Do NOT assume that everyone will accept an offer lower than the asking price. That will depend on how long the property has been on the market, and how desperate the sellers are to sell -and the local area.

As has been said once your offer IS accepted allow a good three or four months for it to go through the legal procedures. Conveyancing solicitors are notoriously slow. Assume you will not be requiring a mortgage - if so as cash buyers that will be in your favour and could get the sellers to accept a slightly lower offer on their property.

Do as much homework first before going to local estate , as to exactly the sort of thing you are looking for and the price.agents

My DMiL house sold last year. It was Scotland where the typical method is offers over an upset asking price. It's rare to buy for under.
We accepted an early offer 10% above the asking price but the buyer pulled out due to a chain.
6 months later it was back on the market and there were 2 more offers round about the same so a closing date was set.
It was very stressful for my B and S in law. Their agent didn't seem very helpful.
It's a myth that Scotland is easier. It seems you can pull out of a sale right up until the missives are signed. Accepting an offer is no longer enough.

Good luck Nansnet

My DD and her DH ended up with a bidding race and a doer-upper house they and another couple wanted.
It went over the original price.
They got it in the end by just 1k over price.

Also be aware that the deed is not done in England, until the contracts are exchanged and although frowned upon, the vendor can ask for more money just before exchange is happening.
As far as offering 10% below the advertised price, be aware that on a £500,000 priced house that is £50,000. It could be seen as insulting.
My advice is that money spent on a good solicitor is worth it.

I think it also depends where you are looking. If it is a sought after area, then you will have little chance with a lower offer, especially a cheeky one. In our family we have done 3 purchases over the past 4 years, all different types of properties in the same area.
DH and I offered the full asking price and said we wanted it taken off the market the same day.
DD2 bought an individual newbuild and offered the full price, but asked the builder for the carpets to be ripped up and a new oak floor to be laid throughout.
Our DS1 lost out on several houses due to sealed bids going way over the price. In the end he paid the full asking price on a doer-upper.
Good luck!

Nansnet, Wise words from Whiff, however you haven’t a property to sell here so the process should be much easier, more so if it’s new build which I understand there is no negotiating on price, certainly not herein the Midlands.
Good luck.

Agree with karmalady. Within a few days of our fairly priced home going to market an offer from an ‘excellent buyer’ was so low (over 20% less) we were insulted. They came back with a more reasonable offer which we refused as we had no trust in them. An asking price offer followed from another couple and unlike the experiences of others all proceeded smoothly.

When looking for a new property we took many things into account before making an offer. Other sold prices in the area, how long the property had been on the market, it’s condition, location, a chat with the selling agent before offering and what value did the property have to us. Our former home had been a new build and I agree, there is often considerable wriggle room around interior fittings if the house is not yet built. In our case as it was finished and un sold a generous discount on asking price was secured. The ‘speed’ of the current market in your chosen area will also have an impact.

Good luck nansnet. If you can take your time when here to get a feel for your chosen area and get to know agents I’m sure all will be well, it may take time though.