FTB making cheeky offer?

Beckymarshall07

Well think we've finally found our home after all he ups and downs we've had recently. Just need some help deciding what to offer.

House was on market for 140k since June, Vendor reduced in september to 135k. When I spoke to EA I said 120k would be our ceiling and vendor has said they would accept offer of 120k. Its a 3 bed semi.The house is empty as occupant had died and daughter is negotiating sale. House is very dated and will need new kitchen, bathroom and some building work at the back of the house. I suspect it will need a total rewire too. We are estimating it will need prob 15k spending on it. Our builder friend is coming to view house with us so we can get his opinion.

Just wanted to know tho - would it be cheeky of us to go in at 118k with offer as I know the vendor has come down quite a bit? Houses on the street in boom time have gone in excess of 130k-150k for semis. Similar properties are on market for between 130-145k which are not in such a good location.

Thanks in anticipation!

Mutton_Geoff

Not cheeky enough. Forget the old asking prices, the vendors have indicated they are willing to accept £120k. Now offer based on that considering the work to be done. £118k is not even 2% under their acceptable price.

I'd sort out a schedule of works, itemise the prices, then deduct that from the £120k so offering somewhere between £100k and £110k. If they say yes first time, your offer was too high!

With an executors sale, the beneficiaries will all have their eyes on some inheritance and the person selling (the executor) will be keen to get all this out the way. You're in a strong position!

PropertyPro

It sounds like the daughter is very keen to sell which is not surprising considering the time it has been on the market and the work that is required to the property.

Leave yourself room for negotiation. As Mutton indicated, it is worth offering quite a way below the £120,000 figure. You may get lucky and have the first bid accepted, but if not, you'll be able to raise your bid - don't do that too easily though. The agent will smell blood and try to push you as high as possible.

Beckymarshall07

Thanks guys. I understand what your saying but they have come down quite alot already - 15k - do you really think their is mileage in getting them down further?

before_hollywood

over estimate the cost of everything that needs doing cos there will always be something that takes the cost up

hethmar

You have to compare the house with what others in the road, in good condition, would be sold for. Then you need to take off the cost of the repairs and the possible drop in value over the next few months If houses in the road have gone for £130k already refurbished then £110 would not be a dreadful offer to make - wait til you get your friends list of works and then ring the agent telling him you will need to spend £20k to get it sorted.

Mutton_Geoff

they have come down quite alot already

They haven't! The original asking price was just that, an asking price. It generated such a low amount of interest the place remains unsold. Have you Property Bee'd it? Any Rightmove link?

The price cut has been 11%. Small fry compared to the reductions generally being applied now. Still room for plenty of negotiation!

PropertyPro

Beckymarshall07 wrote: »

Thanks guys. I understand what your saying but they have come down quite alot already - 15k - do you really think their is mileage in getting them down further?

Becky,

You have every chance of getting them down further. You just have to take the plunge and give the agent a call.

Good luck. Let us know how you get on.

Mark

hethmar

Do you have a mortgage offer in principle? Get that now so that when you ring you put forward your case as a quick no chain sale. The executors may have to share the house price between several people, if thats so, then each individual will not be losing a great deal and are likely to want a quick divvy up of the proceeds.

HammersFan

If you can get a completion date across to the agent too that will help. The vendor will then look at the offer thinking they can have that money in thir account in X amount of time. I think with a 4 week completion you could offer lower and still get it accepted (its probably more than they would get at auction in the same amount of time).

Beckymarshall07

thanks for the replies - in response to early question about if I have a mortgage in principle - yes all of that jazz has been sorted. Here is a link of the house - difficult to do a direct comparison as not many similar properties have sold on the street as its a bit of a mixed street with detached and bungalows.