I found a flat (say in London) that was advertised a month ago and whose asking price was reduced by 5% yesterday from 500K to 475K. Suppose I make an offer of 450K, i.e. I reduce the price by further 5%. Do I have big chances for my offer to be accepted? (what if I reduce by 7%?)
I am guessing that the chances are quite large, because somehow the seller have shown by their own example that the asking price was too high. But I wonder if my guess is correct. I understand that this might depend a lot on the case, but maybe there are some common patterns or rules.
A more general question, why do sellers reduce the price? Does this increase the chances of the flat to be sold for the price they actually want to get?
PS. By combining the information that you can get from Zoopla and Rightmove I see that in the last two years the difference 15-20K between a the asking price and the final price is quite typical in London for flats around 500K, i.e. the flats are usually advertised for slightly higher price.