We are in the UK and interested in purchasing a house, but the highest offer we could make is substantially below the asking price by around 5%.
However, we have some advantages over other prospective buyers. Sales in our local area are slow and we're ready to proceed.
We are wondering how best to play this. For starters, if we do the "normal" route of making an initial low offer with the presumption it will be increased, it risks looking derisory. But if we offer the maximum right away, the vendor may presume it's a trick, and there's more to be had by holding out.
Furthermore, if we make an offer now, not only is it unlikely to be accepted but the agent will have a tool to leverage higher offers from other interested parties. If the house does not sell, the vendors are more likely to look favourably on a lower figure.
On the other hand, if we offer now, there's an outside chance it might be accepted, closing the risk of someone coming in higher.
Are we thinking about this logically? What's the best way to proceed?