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House and home

House price negotiation ...

(57 Posts)
Nansnet Sat 13-Apr-24 06:13:51

We are planning to relocate back to the UK for our retirement, and will soon be viewing properties. However, as we've not lived in the UK for a number of years, we are completely out of touch with the buying/negotiating process.

Does anyone have recent experience of buying a house, and any tips on making offers, such as how much can we realistically expect to reduce the asking price by when making an offer? I'm sure that most sellers set an asking price for more than what they actually expect to achieve, knowing that most buyers will try to negotiate a lower price.

Any advice on the current buying process would be much appreciated. Thanks!

Gwyllt Fri 10-May-24 07:57:41

Oh dear a good estate agent and advice for sealed bid offers
We went that way with our present house. Bought of the receivers and in need of TLC
Estate agent kept on telling us a really low bid should clench it. When our bid was accepted was told she didn’t expect we would be successful. Our local solicitor tried to get us to back out when slight hitch occurred. Wife of local developer in same walking group was really sarcastic about purchase After we moved in got comments from a number of local that they were glad a family moved in

LucyAnna Fri 10-May-24 06:11:15

Good luck!

Nansnet Fri 10-May-24 05:29:57

Well, we did it! We found a property we loved, and whilst we knew we'd never find one that fitted our list of criteria 100%, it's pretty close. As soon as we viewed it we had the feeling ... we knew it was 'The One'.

We made an initial offer of 4% less than the asking price, which we didn't expect to be accepted, as first offers rarely are. Vendor asked if it was possible for us to increase a bit more, and we offered a further £5k, which was accepted, so we finally agreed a price which was £10k under the original asking price.

The house had only recently gone on the market with no chain, and as we are cash buyers there's no chain our end either.

Solicitors have been instructed by both sides, and we're now in the process of arranging a survey. Hoping that the whole buying process will all go smoothly, but I know that sometimes things don't always go to plan when it comes to buying property, so we're keeping everything crossed! Wish us luck!shamrock

Magrithea Thu 18-Apr-24 10:45:08

Nansnet

We are planning to relocate back to the UK for our retirement, and will soon be viewing properties. However, as we've not lived in the UK for a number of years, we are completely out of touch with the buying/negotiating process.

Does anyone have recent experience of buying a house, and any tips on making offers, such as how much can we realistically expect to reduce the asking price by when making an offer? I'm sure that most sellers set an asking price for more than what they actually expect to achieve, knowing that most buyers will try to negotiate a lower price.

Any advice on the current buying process would be much appreciated. Thanks!

We are almost at the end of our house buying journey - it's been a long one! My advice would be
~ speak to several estate agents and be guided by them.
~ Offers under the asking price are the first step in negotiation and be prepared to increase your offer if you are keen on a property - the good ones go quickly!
~ Make sure you have your finance sorted before making offers, not doing so could lose you your dream property and is very annoying for the vendors!

Good luck!

ForeverAutumn Wed 17-Apr-24 10:27:43

We moved 5 years ago. Our previous home (where we lived for 40 years) was an 18th Century listed building so we wanted to downsize and we found a new build bungalow which is much more economical to run. There were other people showing an interest in the property and the Agent asked if we would like to make an offer, and as the asking price was very reasonable we said we would pay the full price. The seller then said in the circumstances he would provide us with the flooring of our choice throughout (3 bed property) which was an unexpected bonus.

4allweknow Wed 17-Apr-24 09:36:24

The only one occasion in 55 years and buying 6 properties (2 doer uppers) have I managed to buy a property under the advertised price. The one occasion was in 2008 when recession was rife and it was a new build. Discovered yesterday a property near me has sold for 18% over the advertised price. Really, success will depend on demand in area and how desperate the seller is to sell. Try searching on the web for recent sales in the area your interested in, good way to see actual sale prices compared to price advertised.

Nannarose Wed 17-Apr-24 09:29:52

Of course if you are looking to buy, thn the state agent has already been chosen by the seller (or of course, occasionally thy are selling direct).
A good estate agent will guide you as to the likelihood of offers being accepted, the kind of interest already shown etc. I would, where appropriate, use their expertise.

M0nica Wed 17-Apr-24 09:24:27

Floradora9 We have never put a round number on a house sale that is going to sealed bids and with one exception, we, or our AC, have succeeded in getting the house.

The time we lost, someone put in a bid 10% above ours, as we have recently discovered. We were second, and there were quite a few bids below ours. At the time it was well in excess of anything we could afford, and probably more than the house was really worth, but nearly 30 years later the successful biddes are still living in the house and house prices have gone up so much that the original over bid, is neither here nor there.

SuperTinny Tue 16-Apr-24 21:37:35

My husband who was 65 years old at the time negotiated the sale of his parents house and purchase of a retirement flat (for over 60's) for them. They were in their mid nineties at the time.

The house was all boxed up awaiting the removals. PIL were already staying at ours in anticipation of the move. We dropped the keys into the solicitors on the way home (200 miles away) only to be met with a request for their birth certificates to 'prove' they were over 60.

Back to the house we went and luckily found the required documents without too much hassle.

One look at my husband and you would know it was biologically impossible for his parents to be under 60................ grin

Floradora9 Tue 16-Apr-24 21:19:44

One strange bit of advice from me but it did work for us. Do not offer in round numbers add an extra sum like £124 to your offer . We learned that when we bought our last house . It went to a closing date and our solicitor told us we outbid the other party ,who really wanted this house , by only a small amount.

M0nica Tue 16-Apr-24 17:53:47

Zoopla is not a good guide to house prices unless you live on an estate of identical houses. Its prices are simply an average of all houses selling in a specific post code.

If like us you live in a village with the mix of houses it can be particularly misleading. My post code of about 30 houses contains two bedroomed semi bunglaows selling for £350k and large listed period properties that sell for around £1.5 million and everything in between. The average price for this postcode applies to about 2 properties.

Robin202 Tue 16-Apr-24 16:30:23

We bought in mid 2022 at the peak of property prices. Unfortunately then, everyone was wanting to move and many were after the same property with it going to the highest bidder, often well above the initial asking price. We were up against 3 people wanting the house we’re now in so there was no negotiation. The seller said first one who comes up with the money can have it.
Since then, prices have dropped slightly as mortgages have risen due to several interest rate rises and houses aren’t moving so quickly, so you may have more luck with making an offer. If you’re a cash buyer it’ll be easier and of course depends how many are in your chain.
It takes on average 3 months from start to finish. Its a long winded, stressful experience. Good luck!

Oopsadaisy1 Tue 16-Apr-24 16:00:20

MzOops will complete on her house at the end of April, the house she wants to buy is going very slowly, the sellers won’t let her have a second visit with builders ( cracked chimney and loose tiles) until she has exchanged.
Her solicitor has just found a page full of covenants attached to the property which will have to be adhered to or ignored, the Estate Agent said that the sellers hadnt told him about any covenants ( one is that no pets are allowed) we are sure that they have all been ignored up until now.
The process is going very slowly and it looks as though she will come to Oxfordshire to live with us until the sale goes through or has to be abandoned.
Sellers don’t always try to help sell their own house! So be prepared for a slow process. BTW she is a cash buyer but it hasn’t helped so far.

LOUISA1523 Tue 16-Apr-24 15:42:31

I live in the NW...lots of properties here going for well above asking price ...going to final sealed bids.....my nephew just offered 10k over for a house up for 289k and he didn't get it

Jess20 Tue 16-Apr-24 15:17:36

There are several property sales websites which give additional info on things like demographics of an area, local crime rate, schools, doctors, supermarkets and things - Zoopla, Prime Location, On the Market, Rightmove etc. You can look at sales in the street/ area and check out sold prices and how many have been sold recently. Some offer a rough guide to prices but this often won't map onto actual asking prices, they're often too optimistic. Looking at flood risk is also useful and there's plenty online where you can see if you've got a risk of flooding.

ayse Tue 16-Apr-24 14:40:43

My daughter has just sold her house after confirming that the buyer had all the paperwork in place. She went to sealed bids and was offered 10% over the asking price. Both she and the estate agent were very surprised. This was in the NE where property is usually far cheaper than elsewhere. All the paperwork takes time so I hope it doesn’t drag on.

All the best for your relocation

Milliedog Tue 16-Apr-24 13:34:54

Go and see your prospective house at different times of day. You'll then discover if traffic or road noise is an issue or if the neighbours are noisy when they get home from work etc.

JdotJ Tue 16-Apr-24 12:52:59

Just over a week ago we put our house on the market and I'm already stressed beyond belief. We've had one viewing so far, which was a No.
We've lived in this house (London Borough) for 25 yrs and when we bought the property, in 1999, we moved in within 8 weeks of viewing it
Now, I'm told by our estate agent, that it takes twice as long as that to even get the searches back !
Good Luck

cc Tue 16-Apr-24 12:14:31

The best of luck to you Nansnet!
I would say that you need to have written proof of the availability of funds for your deposit or the total purchase price if you are a cash buyer. You can show this to your solicitor who can confirm to the estate agent that the funds are available. You do not actually need to show this to the estate agent, in my experience if they see you have cash they want to push the price up.
It is important to have a solicitor in whom you have faith, don't under any circumstances use one recommended by the Estate Agent or use a firm of "conveyancers". If you do you may find that you are speaking to a different person every time you call and that nobody knows what is going on.
Ideally, if you have friends in the area you are moving to, use a solicitor recomended by somebody for whom they have acted previously when buying a house.
You can check the sold prices of similar houses in the area on Zoopla or Rightmove though they are just a guide as houses can vary so much.
Not all Estate agents value properties over the price they expect to achieve and if you are moving to a popular area or want to buy a particularly attractive house you may need to offer the asking price to get the property. We did that for our current home as we knew that properties sell very quickly here, usually for the asking price, even when the general property market appears to favour buyers.

crazyH Tue 16-Apr-24 11:45:08

JackquiOh - I love it - a new take on the fine art of ‘haggling’

JacquiOh Tue 16-Apr-24 11:39:51

Beware Sheffield where the custom is to haggle and the price goes up, not down

SporeRB Sun 14-Apr-24 11:07:55

My daughter and her partner had recently bought a house in a lovely village. They and their buyers made the mistake of using the solicitors recommend by the estate agent.

Their solicitors were so incompetent. There was hardly any chain, their buyers were first time buyers and the seller was moving to a park home but the process still took six months.

The estate agent wanted to see the financial evidence - their bank statement showing the deposit for the new house and the mortgage approval in principle before the property they were buying was marked sold online.

If you are transferring money from abroad, you need to transfer below the money laundering threshold, I think it is about £20k per transaction. Check with your bank.

Due to climate change, avoid buying a property near a river even if there was no history of previous flooding.

If you are a cash buyer, you are in a strong position, can put a cheeky offer if the house you are buying is dated in need of modernising with no chain. Usually, buyer offers 10% below asking price.

Joseann Sun 14-Apr-24 08:56:30

Just a thought. If you're relocating from abroad, you need to be on the ball transferring your monies to this country in advance of the purchase date. The funds can get held up while they do checks on money laundering too. We exchanged amounts in chunks bit by bit.

Gwyllt Sun 14-Apr-24 08:50:19

It goes without saying house purchases are stressful A friend of mine and her husband put their house on the market. It was a 70s house that they had totally renovated some four years ago Close to a bus stop it’s lovely views over the sea
Mother And daughter put in an offer almost immediately. No chain, Cash purchaser and wanted a quick exchange
Sounds good, doesn’t it? But they heard nothing Then we told that the purchases solicitors were not cooperating and we’re very tardy. Was this a scam ? This went on for months then they were advised to put it back onto market by the estate agent And their solicitors. The bungalow they Had an offer in on were going to pull out
They returned from a walk to find that the prospective purchaser was sat in their garden in tears having been told they were going to put the house back on the market. It appears that she had also been told that it was their solicitors that were being so negative and that they didn’t want to sell the house to her
They both agreed to contact their solicitors the following day The sale went through very quickly
In all of that who was to benefit was there by chance another purchaser waiting in the wings to put in a lower offer?
Who knows any thoughts?

Vintagewhine Sun 14-Apr-24 08:30:31

We've always found that finding the right property is the hardest bit and usually there's been a lot of interest. We offer the asking price as long as the house is taken off the market and on one occasion we offered more. However trying to downsize we accepted an offer well over the asking price from someone who had sold theirs STC. We just couldn't find the right property and had to let them down, which I hated doing but we were not prepared to rent.