Lowish house offer, whether to push for more?

December 8, 2016 11:24 AM

House offer is welcome but at the lower end of the guide price. Should I try to negotiate for more in these freaky Brexit-y times? Or should I take the money and run?

Thanks for your wisdom in advance! Please note, this is the UK housing market and estate agents *supposedly* work for the sellers here.

I own a 4-bed house in a very popular area of the UK. Housing market has been steady despite the downturn.

Back at the beginning of October, crappy estate agent advised me to put the house on at OEIO £450k - a sum I thought was pushing it considering there were nicer houses on for a similar price. Thirty viewings and eight weeks later, one solitary opening offer of £440k from a couple who'd yet to sell their house near London.

Last week, I switched to jolly estate agent, nicer photos, better customer service - house now more realistically priced at £425k-£450k guide. The day we went live on the house sales portals, Mr and Mrs X called and asked to see the house and we managed to squeeze in the viewing that evening.

On Monday, they offered £415k on the basis that they were putting their flat up for sale that day with jolly estate agent. As they were not proceedable, I didn't respond to their offer, except to say that it was low.

On Tuesday, they offered £425k on the same basis, saying that they were putting their flat on for £10k under the recommended price to sell quickly. Again, I didn't respond as they were still unproceedable.

Today they've come back with the same offer of £425k, but apparently have been able to raise finance to be able to buy the house without selling their current property by raising money against their BTL portfolio and with funds from family.

I spoke to the estate agent (unfortunately not the person who took the offer) and he seemed to think that the chap had the air of final offer about him. However, I'm keenly aware that this jolly EA has very little on the books at the moment and would love to wrap this up quickly.

Bearing the above and the following in mind, what would you do?

* Estate agent and Zoopla both estimate the house to be worth £435k.
* Four viewings are booked in on Saturday coming.
* The previous estate agent is sending someone round for a second viewing on 17th December.
* The offer of £440k is still on the table.
* I can't see anything on the house sales portals that I'm wild about and the houses I liked back in October have been sold.
* £10k would make a big difference to me in terms of the next place I can get, e.g. the difference between a house and a flat. I'm planning to downsize and pay off my mortgage and I don't have anything in savings currently.

Thanks very much! Do ask any questions if there's anything I've missed out.

posted by doornoise to Work & Money (9 answers total)

If you aren't in any rush to move (or so it sounds) I don't quite understand why you don't wait? Yes, Brexit, but the UK market has (so far) defied expectations of a price crunch in popular areas. And 10k is a lot to leave on the table! It's also a slow time of year for people to do anything before the holidays; you may have more luck in January.
posted by heavenknows at 11:45 AM on December 8, 2016 [1 favorite]

If the £440K offer is still on the table, I don't understand why you don't take that one--or at least counter offer. You didn't think the house was worth £450k in the first place. The new agent has the house priced at a range (which I've never heard of before but acknowledge it may be a UK thing).

The only factor I can see against this is you don't seem like you want to move. So if that's the case, take the house off the market until you're ready and you've found someplace else you like.
posted by sardonyx at 11:59 AM on December 8, 2016 [5 favorites]

Best answer: I definitely wouldn't take the low offer. House prices are predicted to rise slowly under Brexit or at worst to stagnate. It's the lack of housing supply that is mostly driving prices and that's not going to change anytime fast. What does mouseprice say your house is worth out of curiosity?

You know your house is worth £440k because someone offered that. They're not proceed-able so keep the house on the market but don't accept less than £335k especially as you don't seem in any hurry to move. The housing market is at its slowest this time of year anyway so the fact that you have a lot of interest is a great sign.
posted by hazyjane at 7:37 PM on December 8, 2016

Oh and also I think you should put your house on at £440k and stop messing about with guide prices, etc. A guide price, particularly a range, makes me think the house is going to be sold at auction and I sometimes don't even bother looking at this listings. Also no wonder the buyers who are now in a great position (no chain, able to proceed right away) are offering £425k. Why should they offer more given your listed price and their position?
posted by hazyjane at 8:28 PM on December 8, 2016 [2 favorites]

The range is a really non-standard thing to do, and as a buyer would massively put me off. If I was at the lower end of your budget, id be assuming you would mess me around until you got a higher offer. I'd get your house put on at a specific price. You can, of course, tell the EA the minimum price you'd accept.

For this reason, I'm a bit concerned about your second estate agent. Yes, they sort of work for you (they should work for you) but ultimately a house sale is a house sale for them. Are you sure your first EA overpriced it? Are the houses you've compared really alike to yours? There is a house on my street for 20k less than mine (in a roughly 100k area!) but my roof and windows are new, for example.

Finally, don't even worry about this any more until January. The market is traditionally dead until then. Don't mess around with the 425k people unless you really need the house sold, which it doesn't sound like you do.
posted by threetwentytwo at 1:42 AM on December 9, 2016 [2 favorites]

Also, Zoopla valuations are, at best, a finger in the air. Houses on my parents street are on there as being 12k because they were last bought under Right to Buy two decades ago and most people stayed put. One of the
Neighbours just sold for 190k.
posted by threetwentytwo at 4:22 AM on December 9, 2016 [1 favorite]

Can't see much that's Brexit-related here.

Agreed with the others that you should park the whole thing until after christmas. But at that point, do it like you mean it. Which also means finding somewhere you want to buy, without which this whole thing is theoretical anyway. When you know what you're buying, you'll know exactly what you need to make on your current house, and the internet won't have to guess for you.

Also be careful about having more than one agent. If you didn't agree multiple agency with both, the 440k offer from the buyer that your first agent found is probably not still on the table, unless you want to pay double commission. Same goes for the second viewing on 17th.
posted by rd45 at 4:46 AM on December 9, 2016

Response by poster: Thanks everyone. Should have tagged this one #firstworldproblem...

I went back with a counteroffer today and they immediately jacked up their offer by £5k, although they did say that was their best and final.

So £430k, no chain offer in hand, very good start with the new agent! We've told them we'll think things through over the weekend so the other viewings will be going ahead as planned. See if we get any more interest and then decide next week.
posted by doornoise at 9:45 AM on December 9, 2016

Response by poster: Oh, rd45, crappy agents and jolly agents have coordinated, so buyers who initally saw with the previous agent are still able to view, plus the original offer still stands, and I won't be on the hook for double fees. No worries there.
posted by doornoise at 9:48 AM on December 9, 2016