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View Full Version : What to offer


Parapunter
8th Nov 2005, 19:15
Being a gromit in such complex matters, I'm about to attempt to buy a house.

It's on at 173,500, having been dropped form 175k. It was last sold in April to the present owners for 136k. The agent is hinting they're skint & desperate to sell, So what does pprune think?

It's vacant & I'm a first time seeker of an albatross round my neck, therefore in a reasonable position as I have nothing to sell. I'm minded to offer 165 & see how we go, any tips, tactics, strategies most welcome.

Onan the Clumsy
8th Nov 2005, 19:19
IF you_really_have_to_have_this_house = TRUE THEN

offer.make(value(high))

ELSE

offer.make(value(derisory))
condition.add(timequantity=limited)
condition.add(buyertype=cash)
condition.add(offertype=take_it_or_leave_it.muggins)

END-IF

Carbide Finger
8th Nov 2005, 19:24
Start really low! You might get an acceptance when you thought it was a cheeky offer. What about £150K. Not sure which area you are in.

You can find out the prices of recent sales at www.nethouseprices.com/component/uk/ .

Best of luck

Ropey Pilot
8th Nov 2005, 19:40
As to what is reasonable depends on the seller, some price to be knocked down and some price what they expect to get.

Some people have unrealistic expectations and if 1 out of 5 estate agents recommend a selling price 50% above the other 4 they will still be miffed if they don't get it.

What has everything else locally (and similar)gone for? /is your intended better/worse? You need to research both so you know what is realistic and for bargaining if it is above average. (it is amazing how many people spend 5 times their salary based on a barely literate university dropouts commission based advice!)

10% below asking is never an insult (and what they have failed to sell it for previously is irrelevant - it was obviously too much or they would have sold it - what is it on for now)?

Every case is unique - only you can judge if you are likely to lose the house by slowly increasing low bids (and is that the end of the world) or conversely how desperate they are to prevent eviction/repossession.

Bottom line is that in your first house purchase you will feel like you made a mistake of some sort at the end (they snapped it up - I must have paid too much / If only I'd offered 2k more I wouldn't have lost it)

Hope it works out for the best!:ok:

Added: Make sure you have a mortgage in principle in advance - there are a lot of timewasters and just because you are confident there will be no lending issues doesn't mean that is true/will be believed. (We had people make offers on our house before theirs was on the market and eventually admitted they had non chance of affording it - fortunately we didn't take it off the market)

African Tech Rep
8th Nov 2005, 20:38
Bottom line is that in your first house purchase you will feel like you made a mistake of some sort at the end (they snapped it up - I must have paid too much / If only I'd offered 2k more I wouldn't have lost it)

That is amazingly true

When I bought my house I haggled for a while – but it was the wifes “dream home” – I was so pleased after moving in to see a house with a garage but less garden in the same street go for quite a bit more than I paid – still even though mine was cheap because it needed some work (paint / garden etc) I STILL get feelings I should have haggled harder – especially when doing the painting.

Look VERY carefully at it - the five min fix it job will take at longer than you think

NZLeardriver
9th Nov 2005, 00:06
They have only one house to sell, whereas you have many to choose from. That puts you in a much better position. If you offer too low, maybe it sells to someone else. Too bad, there are plenty more out there. Maybe they accept your paltry offer, if not at least they know they they will have to bring the price down a bit.

Farrell
9th Nov 2005, 00:23
Branson made a ridiculous offer for Necker Island. They even flew him out in a helicopter to have a look at it and were disgusted in the end with his bid after all the wining and dining!
But a few weeks later, they had to sell it to him because nobody else wanted it!

GROUNDHOG
9th Nov 2005, 17:27
Purchased in April for £40K less than now, why the increase in what is essentially a flat market in most of the UK?

Unless they have spent a lot of money on improving the place something isn't right and you may be paying way over the odds?

I am ex aviation and now a property developer, my advice is make sure you get a PROPER survey done and that you have looked at the value of similar houses in the street if possible.

Don't get any hang ups about offers and insulting people, we have a couple of places on the market right now, a nice two bed terrace at £185,000 for which I was offered just over £160,000 by some optimist, I wasn't insulted in fact any offer when selling is better than none at all!

Be brave but be careful.... do your homewaork!

Incipient Sinner
9th Nov 2005, 17:50
I had an offer accepted on a house 2 days ago, so feel vaguely qualified to stick my two penny'th in.

House prices have been fairly stagnant for the last 8-10 months (regional variations excepted) so use that previous recent sale as a marker.

The 3 bed semi I'm after was on the market for £125k, including all furnishings and white goods. Usual ploys... they 'mentioned' they'd had it on the market higher; I 'mentioned' that it was teasing the limit of my mortgage boundary.

Hope I played 'em well. Offered £117.5, rejected.
Offered £120k, accepted without fittings.
I told 'em I could wait and they came running back to me the next day. As NZL said, you hold all the cards.

Above all else, pay what YOU think is reasonable. If you're thinking "That's a bit steep, unless you're in Knightsbridge, it probably is!"

G-CPTN
9th Nov 2005, 18:04
>It was last sold in April to the present owners for 136k. The agent is hinting they're skint & desperate to sell,

Did they bite off more than they could chew (in which case they are 'anxious' to recover their situation). Offer LOW.
£37,500 is one hell of a 'profit' for six months 'sitting' - that's £75,000 pa - nice salary.
The 'value' of a property is WHAT YOU CAN GET FOR IT. Nothing more. Why should they think it's worth more than they paid for it? Ask them that question before making an offer.
Remember, you're a SPECIAL buyer - no chain - worth at least £10,000, maybe more.

Tuned In
9th Nov 2005, 21:21
Where is it? In most high-price areas prices are static

If it is in one of thse areas, how about £140k? My house is worth a little less, and it has gone up in value by less than £4k in that time, so you are being generous. They are out of touch!

Parapunter
11th Nov 2005, 06:48
...and it went for 171K & I didn't get it. I think the couple that bought it paid waaaay over the top considering it's a 3/4 finished refurb (bodge) so praps I've just dodged a bullet. Thanks for all the tips folks, plenty of food for thought. It was in sunny Worthing BTW.:yuk:

Hanse Cronje
11th Nov 2005, 09:50
Recently purchased my second property, was on the market for 167Km offered 140K and got the property for 145K. All it needs in the long term is a kitchen and utility more to ones taste.