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Buyers are always asking me “What percentage should I offer below the asking price?” if you find yourself asking this question you are approaching the problem from completely the wrong angle.  There is no magic percentage that should come off an asking price as every transaction is different. 

You should always aim to pay what the property is worth to you, firstly you will need to understand that asking prices are not a reflection of a properties true worth they are merely an indication of the owners perceptions.  All sellers have different personality types, some believe they should add a large chunk onto their target price to allow for heavy negotiations, whilst others may cut the price much closer to the bone, the fact is some sellers are wildly optimistic about their properties value and other can be more pessimistic. 

The trick is to do your research and really understand true market values.  There is no virtue in negotiating 10% off an asking price if the vendor is asking 20% over market value.  Also it would be foolish to miss out on a once in a life time bargain by trying to be too clever in your negotiations and then losing out to a rival purchaser who is happy to pay the asking price.

There is no limit to how low you should offer and equally you should never feel uncomfortable about paying asking price it all depends on the property.  The only way to learn true values is to go out and view some houses, by examining a sample of say 6 – 10 properties you will soon build up a picture of what is available locally. Then using tools on Rightmove such as ‘Find sold House Prices’ you can quickly see what houses in a particular road have historically sold for.  

If you are a serious buyer looking to purchase a home it would be sensible to really consider the comparable evidence and decide what the value of the house is to you, especially if the home meets most of your needs.  Valuation is not an exact science a property like any other commodity is only worth what someone is willing to pay.

It is also important to consider the vendors personal circumstances, as this will influence their decision to accept an offer.  Some vendors have external pressures influencing their decision which could be of a financial or personal nature.  Another factor to take into account would be current market conditions and even time of year, which will affect the level of competition from rival buyers.

As this article demonstrates there is no set formula to making an offer on a property, and what is right for one house may not be the case for another.