House price negotiation

nmiah786

MERRY XMAS Mandi and Ian W

:beer: :rotfl:

I think we might be hijacking the thread.....SORRY OP.

Most_Wanted

This is really helpful stuff! Thanks

The property has been 'sold' before but the deal fell through because the buyers were in chain.
I do want to revise my offer lower and I am hoping there are no subsidence issues with this property.

So you suggest the best technique being to give a final final offer that reduces by a 1k a week?

What else can make them react?
I am thinking I only got the call because its close to year end?

silvercar

So you suggest the best technique being to give a final final offer that reduces by a 1k a week?

If a buyer started playing those games with me, I'd tell them where to go.

Sounds like a Kirby vaccuum seller! If you can afford to pay £y this week you can afford it next week. How is your vendor meant to buy their next proprty with the price dropping each week?

Investigate the subsidence issue. If it is not a show stopper, give your final offer, give them x days to accept then walk away. Dropping £1k a week is going to annoy the vendors and will give the message to the EA that you mess around.

Ian_W

Mosted Wanted wrote: This is really helpful stuff! Thanks

Apology, I started it ... but lighten up, it is Chrimbo [and mandi whatsaname IS very distracting] :santa2:

I agree with silvercar, if you offered to me on that basis the second word of my reply would be "OFF" [let you guess the first!] because I'd consider you were either a complete time waster or someone not averse to gazundering around exchange time. Instead of playing games you should be building your credibility with the vendor and EA, anxious to show them you've got the finance in place to complete quickly. That as a FTB is your big advantage over someone else who isn't procedable.

You haven't said how long the prop has been for sale but as they've refused your previous offers, they can't be all that desperate to sell.

If subsidence is an issue in the area, look elsewhere. If it was only, as far as you can tell, a problem for the prop opposite it's not relevent to the one you're after.

As someone else has already said, the vendor will probably need to acheive a certain figure to make the move they want to make, if they can't there's no point in them selling [unless for some unknown reason they have to]. IMO decide what your final offer is, tell the agent and give them a couple of days to respond, if the answers no, look elsewhere.

---lee---

I agree with Ian. I don't understand how you can reduce your offer and then have it dropping by 1k a week. People don't like to play games when they are selling their house. For most people these are the most serious financial decisions they can make and they don't like to be messed about. If you tried this with me, I would be furious and I would not accept your offer under any circumstances, unless maybe it was double the asking price in cash

You don’t know that there is anything wrong with the house. You can ask the vendors this in any case and they have to tell you. They are legal obliged to tell you about any problems with the house. Any structural issues will be picked up by the survey. If it’s an old house, you can pay extra for a more comprehensive survey.

All you have to do is tell the estate agent that you have already made your final offer and it remains on the table for x amount of time, then no deal.

Anyway, Merry Christmas – hope it goes well.

Kenny4315

Offer what you think it is worth. It is not un-usual for further information to be gleaned about a property that makes it worth less in your eyes. Personally I'd be walking away. If you are not in a chain you can do better than £8k off the asking price by a substantial margin. As a FTB you need to look at the purchase as a stepping stone, go for something that you can get at a knock down price, and then move on later. Don't forget also that the £250k threshold will be an issue potential when you eventually need to sell, if you are saying the other house is around £230k and needs some work that's going to take it close to it's ceiling value in the near future. I'd go for something at around the £175k mark (with a big reduction), well within budget do it up sit tight and see what happens.

Doozergirl

I don't know why an underpinned house is such an issue. Obviously, you have concerns about this house because of the house across the road and you may have to underpin yourself, but have you considered viewing the house across the road with a view to either putting in an offer on that one or at least asking the vendors why it was underpinned (forewarned is forearmed)? Is it an old house? People are frightened of underpinned houses but this is only because they don't understand.

Have you seen how they underpin a house? I tell you, that house across the street is going nowhere and will now be more sound than any other house on the street. There are insurance companies out there willing to insure at comparable prices to any other house (just got a much cheaper quote by using confused.com on Martin's suggestion). You could potentially get a good deal on the house across the street!

the_lawson

All offers at this stage are Subject to Contract. If you really wnat the house then offer the 195K so it somes off the market. But have your own survey undertaken. As someone has pointed out, the subsidence in the house opposite could indicate a risk of similar for this house. If the survey shows problems that do not force you to walk away, then you can reduce your offer. You don't have to specifically say your offer is conditional on the survey since that is implicit in any event.

Most_Wanted

Again, thanks for all your advice.
I have agreed with the agent to pay 195k but they insisted that the property will only come off the market once I speak to their mortgage adviser. Not sure what that is all about? I am weary of doing that so have not yet arranged an appointment.

In the meantime the asking price has been reduced by 5k by the vendor - does this show any desperation? I have only reduced the price by a meagre 2.5% - surely I can bring it lower.

As it happens, the property opposite had structural problems due to the roots of a tree/hedge. I am pretty certain this is nothing to be concerned about. I would put in an offer but they are unwilling to listen to offers 15% lower than the asking price!

Why must I see their mortgage adviser and how can I bring the price lower despite having my 195k offer tentatively accepted?

Thanks in advance

silvercar

Being asked to see their mortgage advisor has two purposes.

Firstly, he wants to be satisfied that you are able to purchase the property. The mortgage advisor can confirm to the EA that you have the bnecessary funds and will be able to secure a mortgage to go ahead with the purchase. It won't put you under any obligation to use this advisor.

Secondly, the EA wants to be seen to be giving a helping hand to the MA; if he pushes so many people in his direction he will be giving him some business hence prmoting their business relationship.