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  1. #1
    Expert Forum User The Ultimate London Mom!
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    Question Typical initial offer as % of asking price

    How much do buyers typically initially offer on a house, as a percentage of the asking price?

    A family member, who is a personal financial consultant, ex. bank manager, and has moved (bought & sold homes) at least a dozen times, has advised us to offer no more than 90% of asking price. I'm inclined to believe this, but when we find a place we'd like to put an offer on, we don't want to offer more than necessary, but don't want to lowball either.

    We're looking for a semi-detached or full-detached home in the North West London.

    Thanks very much, Kathy.
    ~ "A friend is one who walks in when the rest of the world walks out."~


  2. #2
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    How much an original offer is would be dependent on a few different things.

    First off when putting an offer in on a property there should be a discussion with your agent about the comparable properties. After looking at these comparables and discussing with your agent you and your agent should be able to come up with a reasonable offer price.

    I personally have never heard the 90% rule. In doing a search of the home sale prices for the past 6 months (Jan 2009- Jun 2009) in the north end of London (which north west london falls) the average sale to list price is 98%. This figure however incorporates all residential home sales.

    If the property is priced low or very aggressively than that price should be reflected in your offer price. If you went in quite a bit lower you may risk offending the sellers.

    On the flip side if the property is listed very high than you may wish to offer lower.

    Also there are cases when you enter into muliple offers where it is common for homes to sell for above asking price. These are still fairly common even today.

    Whether or not any offer is accepted is dependent on the bottom line price the seller is ready to accept.

    With new homes the prices listed are typically the prices you pay. There is not usually any room for movement in the sale prices and upgrades are added to the base price of the home.

    If you would like stats that are more specific to a certain area feel free to PM me.

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