Advice needed on offer received on flat for sale

[scraggy55]

I own a beautiful flat which was brand new when I bought it 5 years ago. It is in superb condition with 5 years remaining on an NHBC Guarantee. I am not in a hurry to sell and I have had it up for sale for approx 12 weeks. I have a lady interested and heard through my Estate Agents today that she wanted to know if I could move out quickly if necessary, ie. move in with a friend or other, I said possibly. My Estate Agent then got back to me and said she had offered me 250,000 - my flat is on the market for 279,950. Obviously I laughed! What would be a reasonable reduction to make on the price? Obviously knocking 40,000 off the price is ludicrous, together with her requests for me to move out quickly. The EA said that she is REALLY interested in it. If she really wants it, I am thinking a) she should not be making ridiculous offers, and b) also asking me to move out quickly. If she wants me to do this, shouldn't she be offering me closer to the asking price to tempt me into complying with her requests. Any comments, advice would be very welcome. I have not bought/sold many properties and live alone - these are very scary decisions to make. Before anyone asks - no - I cannot afford to take such a low offer.

[starone]

I have been trying to sell my house for nearly a year now and have nearly sold it twice, I am hoping third time will be lucky. In my experience the buyers always offer silly prices at first which of course you will refuse and then if they really want it they will negotiate it higher. £40K reduction is risible, in my opinion. I would be tempted to say what is their name, Avingalaff? Personally with your price, I would not go down to less than £270K and I would be a bit reluctant about that. After all that is a £10K reduction. It really depends on how desperate you are to move. The market is very poor at the moment and favours the buyer, although if you are offering on another property you can do the same thing and offer a much lower price. It is a cat and mouse game.

[scraggy55]

Thank you so much for your very constructive advice. Risible is definitely the word. Sometimes in these situations it is easy to feel vulnerable due to a need to move - however - obviously I have to bear in mind that I need to buy myself something else and yes, I was thinking more along the lines of 270,000. If she REALLY wants it then I would have expected an offer closer to the figure it is up for? Cheers Starbuckone, and good luck with your sale!

[mrs_overall]

I agree that £10K should be your maximum reduction

[mrs_overall]

Have any other flats nearby been sold in recent times and if so, what did they sell for? This may give you a guide.
Good luck

[ummmm]

If you want 270k explain to your estate agents to not to come to you with offers below this.

[237SJ]

If you refuse, I wouldn`t be surprised if she comes back with a higher offer. Quite often the estate agents advise the buyer to put in a low offer to start with to see what happens.

[ummmm]

But remember, the estate agent is paid by you.

[Prudie]

Also through your agent make sure any buyer can back up their offer with the money - cash or mortgage in place. Check if they are in a chain, all things that cause many offers to fall through after you've stressed about it.

[bushbaby_de]

The market was at its highest in 2007 and prices are presently lower than they were in 2007 so you will be very lucky if you get back what you paid for it, especially considering that new build flats lost value as soon as you move into them. How does the asking price compare to what you actually paid for it 5 years ago? And how does it compare to sale prices of similar properties in your area? If a lot of new build flats have been built recently, for example, that will also reduce the value of your property.

Also, as a note to ummmm, the estate agent is legally obliged to communicate all offers, even if you have already told them you won't accept offers below a certain value.

[buildersmate]

You presumably know why she has picked £250k? - it is because a penny more than that costs her an additional £5k in Stamp Duty Land Tax. This is a particular with properties in the range £250k - £265k. It is inevitable that the buyer will stick in an offer at £250k.
You are marketing at a price above that, so agree it is long way to drop.

There is no formula for establishing the true market price for a property. At the end of a day, if someone wants your home they will offer what they are prepared to pay. Equally an estate agent's valuation is just that - an estimate based on the knowledge of the agent knowing what similar properties have recently sold for.

If you are in no hurry to move out, make that clear that it is a 'non-benefit' to you. The market oftens picks up in terms of volumes around Esater so it may be better to sit tight, saying (via the agent) that £270k is the lowest offer you would accept for a quick sale.

[ladybirder]

That's £30k below the asking not £40k unless I'm going loopy. Trouble is when you are so near the Stamp Duty threshold people will only want to pay below it. A buyers market, they want to move quickly so you will have £250k in the bank earning (some) interest pretty soon, hmmm. You need to get your estate agent to check they are in a position to move quickly. Lots of people say they are but when you check their finances they aren't.

Here is a link and you can check what other flats have sold for near you and see if that helps you.

http://www.nethousepr...rch-Sold-House-Prices

[scraggy55]

Thank you all for your valuable advice. It still puzzles me why you go look at a property up for 279,950, when you only want to pay 250,000??? What is that all about - and it is not something I would do! I am not in a hurry to move and will stick to 270,000 as the lowest I will accept. The lady in question has looked at lots of flats in the area, for 250,000 I shall suggest she buys one of those!!!! They ARE however, considerably smaller than mine!!!

[Jumbo747]

As answers above, but I would suggest she's just 'trying it on'; possibly to see if you will accept her first offer(very low, but understandable in the light of the £250k stamp duty threshold). Often, purchasers really expect their first offer to be rejected.
If she's that interested she will improve her offer after you refuse it. Just play the waiting game............ you might be pleasantly surprised

[ladybirder]

I think you'll find scraggy that most people when looking to buy will view properties more expensive than what they can pay in the hope that the seller will take an offer. How much more expensive will depend on the market at the time. IMO you should do the same when you are ready to buy again.

I do hope your buyer comes back with a better offer for you, or else you might regret not taking the one on the table in a year's time. Difficult call, but you do have time on your side. I have been on both sides of the dilemma so know how difficult it can be. Do let us know if she ups her offer. Goof luck.

[scraggy55]

I really do appreciate all the advice and views expressed. THANK YOU ALL! I will get back on here in the next few days. I have, I think, made my mind up as to how to proceed thanks to all of you. I will of course keep you updated on how the next few days go! I am sure you will all be waiting with baited breath!!!! :-)) Cheers again

[Twenty20]

Generally, an offer within 10% of the asking price is fairly normal. What she has offered is pretty much that.

By the way, I wouldn't 'laugh' at any potential buyer's offer these days. If you really want to sell your flat then you'll have to, eventually, accept the going rate. The going rate is what people are prepared to pay, not what you ask for it. How many other offers have you had in the past 3 months since it's been on the market?

[scraggy55]

Hello all contributors! Well, the lady that is interested in the flat, offered 260,000 - then 270,000! I have obviously accepted the latter! Thanks for your advice. Now all I need to do is find somewhere to move to, and someone to do my conveyancing! Boy, this is a difficult business - hardly anything in the area I am looking in - so I am a bit disappointed! Why is there nothing you want, when you want it? Thanks again to all of you, it certainly felt very supporting and definitely strengthened my resolve - you are all stars!!!!