How to get your offer accepted 20% below asking price (actual story)

The comment I'm reading out in this video (reproduced below) was from last night's video: "18 Verifiable Reasons UK House Prices ARE Crashing in 2023 - Prove The Doubters Wrong"

It made me so happy I had to share it with everyone.

Just got a 400k offer accepted on a house listed in July 22 at 500k (reduced to 475, then 460 then 425 to then accept by 400 offer only because I said to the agent to encourage the seller to stop holding out and chasing the market down- get ahead of it). Better yet an identical house (floor plan, garden size, condition) round the corner (same estate) was completed in Dec 22 for 500k. Genuinely got a 20% off/pre-crashed house!!! Only viewed and offered after seeing Charlie’s encouragement to disregard the guff! Because 400 is our absolute ‘post-truss’ max and didn’t think there was a point seeing a 425 list. He also stopped us paying 450k (our pre-truss max) for a smaller place in Aug 22 through his don’t overpay mantra. When we see new headlines in 6-8 months saying HOUSES CRASH 20% we will be sitting in our home thinking “yup, we know, we did that!” rather then “oh god well there goes our deposit!”

I am FTB. To all other FTBs, there is hope no matter your budget, Charlie is 100% right GET OUT THERE AND VIEW. Charlie is also right about being nice to agents, the agent actually persuaded the seller to take our 400 offer rather than the seller wanting it!

Direct to Charlie, thank you. You have single handedly got my wife and I to likely avoid negative equity (we have 15% down on this and it’s 20% crashed already = 35%) and have bought for the long term - intended to stay 8-10 years and grow into the house. Granted -20% price may not be the bottom of the market as you say but we’ve reached a point where we need to move - been looking for a whole year almost to the day. In the game of blackjack that buying a house at this time is, we got dealt a 17 and stuck rather than twisting (waiting longer in market) to get a perfect 21 but with high risk of losing out by drawing a 5 or higher.

Thank you Charlie. Genuinely, thank you. If we ever cross paths somehow I will recognise you and buy you a beer at the least."

Thank YOU for that wonderful encouraging story!

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[aybgim]

The market in my area is full of dreaming sellers and buyers who couldn't care less :D Properties are advertised for half a year, get massively reduced or readvertised because deals fall through. As a potential FTB, I have no interest in buying an overrated and depreciating asset, unless I get a really impressive discount. The sellers can keep dreaming, and I rather prefer the flexibility of renting which is way cheaper than paying a crazy mortgage rate on top of an unrealistic price.

[SycAamore]

That's encouraging to hear. However -20% doesn"t seem like a huge deal to me. That's the level of the prices just 2 years ago! I will be looking for at least -25%. But yes, he did well!

[RyoHazuki]

Good morning Charlie. Great outcome for the guy, followed everything you've said since you started out with this channel. As an aside, I'm noticing more and more properties coming online using the 'modern method of auction' through iamsold. Would you be interested in doing a video about this EA/seller tactic? The process seems cagey and a lot of add-on costs that need to be fronted by the buyer. But the properties I'm seeing are good quality, desirable areas that shouldn't have an issue selling at a reasonable price. Cheers!

[cervelo]

There is no rush to buy, prices are going to come down, sitting on your hands is also fine. You also might be able to save up a lot more cash and investments over the course of the next 1, 2, 3, years

[cervelo]

There is a house by me listed for £590, 000 which has just been dropped to £580, 000. In my mind a much larger discount is appropriate.
Nice house in Gilwern, Abergavenny.
If one were to take 20% off the original price £590, 000 then this would be £472, 000.
Fair would be a round number £499, 000 it is a fairly nice house in Gilwern, Abergavenny.

[jcs]

I have notice on some commercial property sites/platforms that both the 'First Listed' and 'Historical Listings' are being removed by the request of the vendors. I can only imagine that this is to hide the fact that their property has unsuccessfully not sold even though the price hasn't been 'realistically' reviewed in today's property price crash!.

Also, some sites have removed how many times a particular property has been viewed. Again probably for all of the above same reasons. When are vendors going to wake up and smell the coffee....rather than hot 'cookies' baking in the oven!.

I am still seeing properties that were listed 6/12 months ago, being relisted (albeit with a different agent) but still at the original price or with that 'old sock' of a label 'Offers Above' or 'In Excess of'. (original asking price!).
That isn't called a motivated vendor...it's an 'ill informed or stubborn one'.

[roystonvehicles]

Back in the day (1990) a stone, basically a small Manor house was in the local paper at 235k, next week it was 175k, then 134k, i went over, the guy was basically going bust, bank had asked him for his chq book back, I nailed him to the mast at 117k, in a nice way tho and it all worked out, borrowed 82k, unfortunately very high rates came (12% maybe 15%briefly) and I was in trouble, anyway got some students in to weather the storm.

[cervelo]

Around by me there are many many listings on Rightmove saying "Reduced on (date)" this is a trend in the market.
It will become quite realistic to find desperate sellers e.g. fixed mortgage offers expiring, couples separating, lost job, higher interest rates, etc.

[KingShaf]

Being nice to agents for the most part has no effect. If they don’t like your offer, they will dismiss you and for the most part not even want to discuss things any further. If you don’t believe me, try it!

[cervelo]

He did not get 20% off. The house had already been discounted £500, 000 to £460, 000 to £425, 000, and he "negotiated" from £425, 000 to £400, 000. Which is a 5.88% discount. A 5% discount from the advertised price is totally unremarkable even normal.

[purplebadgers]

I'm an investor, so not really part of Charlie's target market, but I do agree with most of what is being said. I track a number of channels on the Tube for what I believe are more informed views and this is one of them.

Another channel I have started to track is presented by estate agents for estate agents, and is called 'Uk property market stats'. For anyone that doesn't believe Charlie's figures then go and watch this. These are experienced estate agents, using 20EA data and saying the same thing.

The market will always be the market - it's like the weather, it'll always be there, it just changes sometimes. Best we can do is stay up to date and informed so we can work out whether it's a day for rain coats or sun umbrellas. Information is good. Well done to this guy or gal for staying informed, working hard and getting the deal.

[paulmcintyre]

If fixed rates are 5 year then 5x2 = 10% more borrowing costs than the peak. So why have sellers not dropped their price by 10% immediately? Pre pandemic price should also be a target for buyers, there’s another 20% off. Nothing but 30% off will do ana even then you would have gained nothing.

[robertsmith]

To be fair the £400k was on a property that had been on the market since July last year! Of course at this point the seller is going to be more motivated to sell! If they'd managed a 20% reduction after 3-6 weeks on the market that would have been more realistic.

[cervelo]

The best way to buy is to make money through investments (or trading) and then buy for cash.
I rest uneasy for mortgages that have a very long term and commit you to full time employment to pay off the mortgage for a very long time.

[tariqkhokhar]

Informative, persuasive and beneficial. Thank you

[cervelo]

£400, 000 for a first time buyer. Not very representative is it. Either a very high salary / inheritance / trust fund etc.
In fact mentions Trust several times.

[andrewbarton]

On Rightmove does under offer mean a buyer has made a offer for a property under the asking price example the seller is asking for 100k for property but buyer has offered 95k to buy property 5k under asking price

[Solder-Flowz]

We've managed to drop the price by 3.6% (280k -> 270k). We're still very happy and the house was too unique to let it go 🤷‍♂️

[allanhughes]

Jesus this has come as a shock to me I have been so so nice to agents over the years and all they have done to me is piss on me Honestly be so so carefull what you say to the young buying for the first time In my humble opinion agents are sharks because they work on % bonus my son in law is an agent for god sake lets get reall here shall we

[ervinxhafa]

How can anyone just offer 20% below asking price when house prices are only going to drop 10% max. It’s offensive to the people selling their home where they’ve put som much effort and money into. All major institutions are predicting a 10% overall house price drop, not 35% as you suggest Charlie. Your giving buyers the wrong advice here.