Brits try their luck with low property offers
Published On 12 February 2007
With house prices booming and buyer confidence riding high it is more likely than ever that investors will try their luck with a lower offer, according to a new survey. Research from Yorkshire Bank has found that buyer confidence has now hit a 20-month high with three-quarters of respondents predicting rising house prices.
This has manifested itself in buyers willing to take a chance when making an offer on a property of interest as they try and get the best bargain they can.
The research found 21 per cent of potential buyers would make a low offer at first and only raise it if absolutely necessary to the purchase.
During 2007, some 71 per cent of us feel that property prices will continue to increase, which represents the highest level of market confidence since April 2004.
Gary Lumby, Yorkshire Bank spokesman, said: "Last year the housing market exceeded most people's expectations and it appears the confidence homeowners took from this has carried through to 2007. Although three Bank of England interest rate rises don't appear to have dented this confidence, the market is less robust. We need to wait to see how it reacts to January's unexpected rate rise.
"Buyers who are now looking for properties they can do up are using this uncertainty to their advantage by trying their luck with a lower initial offer - and only raising it if necessary. Should these offers below the asking price be accepted by sellers then we may see prices levelling off."
Just 12 per cent of people said they would immediately offer over the asking price on a property they wanted.
