So you’ve found the perfect house and you want to make an offer, but it’s listed as offer in the region of price.
So what is an acceptable offer in the region of? What is acceptable as an “offer in the region of” depends on what the property is worth to you, how much the seller is willing to accept and how long the property has been on the market. Always bear in mind that the list price of any house is not its valuation, but is a guide price only.
There is also the saying “If you’re not embarrassed by your first offer, it’s too high.” Always have this saying in mind when considering what to offer on any property you are viewing.
What does offers in the region of really mean?
Offers in the region of is to give buyers a rough guide of the asking price. Sellers are usually happy to accept offers below the offers in the region of price, but would obviously prefer offers over this amount. But the wording suggests the seller is open to negotiation.
If in doubt about what the offers in the region of price means for a particular property ask the estate agent. The agent will give you an idea of what the seller is looking for. But remember the estate agent is working for the seller and may not always tell the truth.
What factors affect what offer to make on a property with offers in the region of list price?
If you always begin with the idea that “offers in the region of” can mean that offers can be either above or below the price listed. With that said, what are the factors that will affect what offer to make on a property with offers in the region of list price?
What is an acceptable offer in the region of is affect by:
- How long the property has been on the market.
- Whether the property needs any work doing to it.
- What other similar properties are worth in the location.
- How keen the seller is to sell and move.
- How keen you are to buy the property.
- If you are prepared to accept no for an answer.
- Whether the market is a buyers or a sellers market.
- If you are an investor looking for a bargain to flip or as a buy to let investment.
- How proceedable you are as a buyer.
Let’s take a look at each of these in more detail.
1. How long the property has been on the market
The longer a property has been on the market the more likely its list price is over what it’s worth. All properties will sell at the right price. All you need is a willing buyer and a willing seller.
If you find a property listed as offers in the region of, but it’s been on the market for in excess of six months, you should offer at least 15% less than the asking price.
But before you offer, make sure to do your research of the area. Find out sold comparables of similar properties in this location.
2. Whether the property needs any work doing to it
Properties that require work doing to them will always sell for less than a similar property that needs no work doing. If the property listed as offers in the region of is over priced for the amount of work needed, you should definitely offer less than the asking price.
However, if the offers in the region of price properly reflects the work required, you may be happy to offer the asking price.
3. What other similar properties are worth in the location
It’s always good practice to do your homework and research property values in the location where you intend to buy your next property.
To research property prices use Rightmove, Zoopla or Nethouseprices. But make sure to concentrate on sold comparables. Be careful if you are comparing prices of other houses that are still for sale, especially if any of these have been on the market for some time.
After working out what similar properties are worth, you need to also consider what you can afford. But remember you have nothing to lose by offering what you can afford. The seller may accept your offer.
4. How keen the seller is to sell and move
If the seller is very keen to sell and has not had any offers, your offer may be acceptable to them. It might even be their first and only offer. This might be the case even if it’s a cheeky offer.
If the seller’s need to sell is stronger than your need to buy, you are in a stronger negotiating position. If you are prepared to walk away you have the upper hand. Especially if there are no other buyers around looking at this property.
However, if on the other hand the seller is not that desperate to sell they will likely be willing to wait for the best offer.
However, some sellers have expectations of price that are way above what a property is worth. This is sometimes fuelled by estate agents over-valuing the property in the first place.
5. How keen you are to buy the property
If you are keen to buy this property and if it’s an emotional purchase, you are less likely be able to offer less than You would if you’re prepared to walk away.
But if you are really keen on the property and it’s your dream house, you may even consider offer over the asking price.
But make sure when you view the property to not give the game away to the seller. Don’t go around the house telling them how their house is your perfect home. Also be careful what you tell the estate agent too, as they are working or the seller.
The agent is going to try and get as much for the property for the seller as they can. If they know how keen you are to buy the property, this lessens your negotiating power.
6. If you are prepared to accept no for an answer
Many buyers find it uncomfortable to offer lower than asking price. But even more buyers find it difficult to offer significantly less than the list price. However, if you are prepared to walk away you shouldn’t worry about the seller saying no.
But in all cases if the seller does say no, always tell the agent or the vendor the offer remains. If they don’t get any other offers and the seller needs to sell, they may come back to you at a later date willing to accept your original offer.
7. Whether the market is a buyers or a sellers market
The strength of the market will have an impact on how much the price can be negotiated. In a seller’s market it’s much more difficult to offer low on a property. Whereas in a buyers market sellers are happy to find a buyer. This means the price will be more negotiable.
8. If you are an investor looking for a bargain to flip or as a buy to let investment
As a property investor the purchase won’t be an emotional buy. This means you’ll be prepared to leave an offer on the table and walk away if the offer is rejected. Being an investor affords you more power and flexibility over the offers in the region of price.
9. How proceedable you are as a buyer
The more proceedable you are as a buyer, the more attractive your offer will be to the seller. If you are a cash buyer and don’t have a house to sell, you are a more proceedable buyer than someone who has a house to sell.
Therefore the more proceedable you are the more negotiating power you have over the offers in the region of price.
You may also like to read: Can I offer less than offers over price or offers in excess of?
Please don’t forget to read this before you leave…
Please don’t forget to also read this article to discover how you could save £71,475 on your next mortgage if you sell your house and rent before buying again. As I said earlier, even I was amazed when I did the calculations!
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