What should we offer?

MyUserNameWasTaken

First time posting here...

So we're looking to buy a family home. I know now might not be the most sensible in that if we waited a bit longer then house prices would drop further and we could get more. But we want to move now (just had a baby) and see this as a long term investment so don't mind if the price drops in the short term.

We've seen a place (in SW London) which we like. It's on at 550k. In very good condition although we would want to extend into the attic.

We are first time buyers and have a deposit of 250k. We're both in stable jobs which will not be affected by credit crunch.

I've looked it up and houses on this street have sold in the past for 630K (Feb this year) and 420K and less (in 2006).

We can't afford the full asking price and we're not desperate to get this place so I'd like to put in a cheeky but not offensive offer. Any idea what that might be (taking into account our position)?

Thanks for any advice.

poppysarah

450

Nice deposit!

MyUserNameWasTaken

Thanks PoppySarah. That's the kind of figure I had in mind but wasn't sure if it was really cheeky. Good to hear that someone else thinks it is ok.

wymondham

Wow, quite a deposit for a FTB, well done - I think you've made lots of assumptions though, especially assuming you'll be immune from any downturn. Offer a silly price, you never know what the circumstances of the seller are, and they can probably see it's losing value fast.....

poppysarah

If you too think it's not too cheeky then I've probably been over-cautions.

How much mortgage can you afford?

If you want to be really cheeky offer 350 and tell then 400 is your top offer.

hethmar

Was the house at £630k the same sort? Im just wondering how they have decided on their price. Have they already discounted it heavily thinking they would get a quick sale.

MyUserNameWasTaken

Re the deposit - yep, it's good but it's an inheritance and suffice to say, I'd rather the person were still around....

So the 630 house had same number of bedrooms etc but that's all I know. I also know that they had accepted an offer on the house we like and then the buyers pulled out. They might have factored the downturn in the market into the current price but not sure how I would know that? Or how to reflect it in an offer.

So is the general consensus that 450 is too low or not? We could stretch to a mortgage of 500 but I'd rather not (and don't want the house at that price...)

pawpurrs

I was going to say £495k but not knowing how the price compares with other comprable properties that could be too low.

hethmar

£100k less just under 20% (its like monopoly money now isnt it) Worth having a stab Id have thought