tips on how to make an offer

sneakyg

Hi, what the best way of making an offer on a property?

Im a FTB and just about to make an offer on a one bed property in palmers green north london. The property is up at £199,000 and I have been told that it was valued at £250,000 last year. (im saying this as i belive that the estate agent and vendor are still in dreamland.. ...)

I want to make an offer of £155,00 on the property but i want them to take it and me seriously so i was wondering if i should just state my price in the email or add anything to it? like in this climate my offer is a very good offer and im able to move quickly with this?

Thanks

slummymummyof3

I would make a phonecall and express to the EA that you are not interested in bargaining, this is your first and last offer on the property. The EA will obviously tell the vendor that it is a first offer and undoubtedly you will increase it if it is turned down. Make it 100% explicit to the EA that this is the one and only offer and that you are proceedable (assuming you have a mortgage agreed in principle???) If it is turned down, walk away unless you are prepared to pay more.....if you still want the place, I would be tempted to leave it a week or so to let the vendor/EA consider their options (or lack of them....depends on the vendors situation really) and if necessary increase by a minimal amount but state that it is subject to survey and that there will be no further increases in your offer.

GDB2222

I would bear in mind that one bed flats and studios are the ones that suffer most when prices drop.

sneakyg

GDB2222 wrote: »

I would bear in mind that one bed flats and studios are the ones that suffer most when prices drop.

That is a concern, but palmers green is quite an afluent area and if i get it for around the £160,000 mark it may (fingers crossed) hold value

hethmar

Have you checked on one of the property price sites to see the price it last sold at? If it were £250k then the vendor has already taken a huge slam hasnt he and be expecting to sell near what the agent tells him is the quick sale price?

Get your mortgage in principle first, tell them how much deposit you have and that you can proceed immediately and then make your thought out offer.

Check out the previous sold price and the price of the others in that block.

Good luck

Have you seen this 2 bed one? or is it not the right area?

http://www.rightmove.co.uk/viewdetails-19898878.rsp?pa_n=2&tr_t=buy&mam_disp=true

sneakyg

hethmar wrote: »

Have you checked on one of the property price sites to see the price it last sold at? If it were £250k then the vendor has already taken a huge slam hasnt he and be expecting to sell near what the agent tells him is the quick sale price?

Get your mortgage in principle first, tell them how much deposit you have and that you can proceed immediately and then make your thought out offer.

Check out the previous sold price and the price of the others in that block.

Good luck

Have you seen this 2 bed one? or is it not the right area?

http://www.rightmove.co.uk/viewdetails-19898878.rsp?pa_n=2&tr_t=buy&mam_disp=true

the vendor brought the property 8 years ago, so i havnt been able to find out what he has payed, but id guess at about £120 or so, its a converted house

the estate agents aparently valued it at £250 last year, but i have no proof of this

GDB2222

sneakyg wrote: »

the vendor brought the property 8 years ago, so i havnt been able to find out what he has payed, but id guess at about £120 or so, its a converted house

the estate agents aparently valued it at £250 last year, but i have no proof of this

If they'd asked me last year, I could have valued it at £750k for them. If you like, I could value it for you this year at £75k.

Flexible Valuations R Us.

GDB2222

Cynical? Me?

slummymummyof3

Last years valuation is somewhat irrelevent in this current market. A home is only worth what someone is prepared to pay for it! This has been part of the problem with this country in the last few years, in that, people have felt artificially rich because of house valuations.....unless you have sold the property and the money is physically in your hand, you can't assume you have that money. Hope that makes sense.

Is it vital that you buy now or could you realistically hold on for a while? I don't think the housing market will recover overnight and even if it did recover quite quickly, many people are twitchy about the security of their jobs etc.

I bought my first house in 1991, assuming that the bottom of the market had arrived. 7 years later, I sold my house for less than I paid for it (and had spent money on the house as well.) 12 months later the person who bought if from me made £60k. Hindsight is a wonderful thing.

sneakyg

slummymummyof3 wrote: »

Last years valuation is somewhat irrelevent in this current market. A home is only worth what someone is prepared to pay for it! This has been part of the problem with this country in the last few years, in that, people have felt artificially rich because of house valuations.....unless you have sold the property and the money is physically in your hand, you can't assume you have that money. Hope that makes sense.

Is it vital that you buy now or could you realistically hold on for a while? I don't think the housing market will recover overnight and even if it did recover quite quickly, many people are twitchy about the security of their jobs etc.

I bought my first house in 1991, assuming that the bottom of the market had arrived. 7 years later, I sold my house for less than I paid for it (and had spent money on the house as well.) 12 months later the person who bought if from me made £60k. Hindsight is a wonderful thing.

thnaks, It is important that i do buy as im outstaying my welcome at home and qualify as a key worker so im using ownhome as i wouldnt be ablet to get a mortgage without this support. i realise that this is not ideal, but nothing is, im just trying to make the most out of a bad situation

GDB2222

sneakyg wrote: »

thnaks, It is important that i do buy as im outstaying my welcome at home and qualify as a key worker so im using ownhome as i wouldnt be ablet to get a mortgage without this support. i realise that this is not ideal, but nothing is, im just trying to make the most out of a bad situation

No, it's important that you move out. That might mean renting, rather than buying.