London - Bidding Below The Asking Price
When you're in the process of buying a 1-bed property in London and thinking about making an offer below the asking price, it can feel like a bit of a challenge.
Let’s be honest here…
You definitely want to avoid annoying a seller with a ridiculously low offer!
However, you also want to offer what you feel is the correct price…
The price that you’d pay, as such!
There are a few things to keep in mind…
Firstly, consider the current state of the real estate market in London.
It's no secret that London is known for the incredibly high price of its properties - it is, after all, amongst the most expensive in the world - and these 1-bed properties can can go under offer very quickly.
It’s so important to carry out research on what's happening in the area you're looking to buy in...
“When there aren’t many 1-bed homes available (also known as a seller's market!), it might be difficult to justify offering less than the asking price.”
Take Chelsea, for example...
Chelsea has a wide variety of areas and types of locations in which to purchase a 1-bed home.
For example, near the River Thames, you have areas such as Chelsea Embankment and Chelsea Physic Garden…
You have lovely 1-bed terraced houses just off the King's Road…
You have vast 1-bed apartments and townhouses overlooking private garden squares...
Within Chelsea, as well as London as a whole, prices can vary a lot, especially within the same street - think differences in size, layout, orientation (the positioning of the apartment or house - sunlight, etc!), outdoor space, parking, etc!
When there are plenty of 1-bed homes available (also known as a buyer’s market!), offering less than the asking price could well be a reasonable route to take, especially if you can justify why you are offering below the asking price.
When there aren’t many 1-bed homes available (also known as a seller's market!), it might be difficult to justify offering less than the asking price.
What is the condition of the 1-bed property?
Is it in good shape or has it been recently renovated?
Is the 1-bed property in a sorry state and does it needs a lot of work done to it?
What is the motivation of the seller?
Why are they looking to sell?
What are they looking to achieve by selling - where are they looking to move to?
How long has the 1-bed property been on the market?
Have there been recent sales of similar 1-bed properties in the area?
If so, what did they sell for?
At all times, be 100% ready to move on if you can’t buy the 1-bed home that you want, for the price and terms that you want!
There will be another 1-bed property our there for you!